Impact of the Depression 1929 - economic impact Flashcards
As Germany’s foreign trade collapsed and prices fell, what did companies do ?
Companies had no alternative but to declare themselves bankrupt and make workers redundant.
What did companies that survived do ?
Those companies who survived had to reduce their workforces and cut the hours and wages of those workers who continued working.
Why did banks get into difficulties ?
As customers withdrew their money and outstanding loans were not paid.
Impact of the government closing banks and the stock exchange ?
The Depression deepened, became more prolonged and economic conditions for millions of Germans became more desperate.
How was industrial production affected ?
Germany suffered a greater fall in industrial production than any other European countries - Industrial production fell by more than 40%.
How was unemployment affected by the Great Depression ?
Unemployment increased.By 1932 about one third of all Germans registered as unemployed.6 millions Germans officially unemployed.
Many redundant workers, especially women, did not register and so were not counted . Estimated that in January 1933, true number of unemployed was about 8 million .
Impact of the Depression on industrial areas ?
Impact of the Depression fell very heavily on the main industrial areas such as the Ruhr, Silesia and the main port cities such as Hamburg.
This was because the German industrialists lost access to US markets and found credit almost impossible to obtain -many industrial companies or factories either shrank or closed
Impact of the Depression on those in the civil service ?
In the civil service, there were severe cuts in the workforce and reductions in the salaries of those who remained.
Impact of the Depression on farmers ?
Farmers were also very badly hit.Farmers struggled even win the ‘ golden age ‘ but the Depression put them in serious difficulty.
Prices collapsed, exports of agricultural produce declined and sales of food fell as germans had less money to spend.
Many more farmers to give up their farms as banks demanded repay loans.
How did the unemployed Germans feel ?
Not only did they lose their income that they relied on, but they also felt unwanted and rejected, which had a deep psychological effect on many.
How were millions of other people affected by the job losses ?
Members of workers’ families were hard hit, and traders suffered because of reduced demand for their goods
