Summary 5 1929-1933: Depression and rise of the Nazis Flashcards
Why was Germany susceptible to the repercussions of the Wall Street Crash ?
- germany was dependent of foreign loans (particularly from the USA) but after the Wall Street crash, new loans dried up and existing loans were called in by US banks
- additionally world trade slumped and germany lost its valuable export market for its manufacture
Why did the government not act decisively to tackle the slump ?
- widespread international belief that govts were fairly powerless to help
- 🔔 hard for coalition to decide in action (March 1930: Mullers coalition collapsed as could not agree on how to tackle the depression)
- govt terrified of a repeat of hyperinflation- thought this could be caused by govt increased spending on welfare and public works
- legal restrictions on the Reichsbank (as a result of Dawes and Young plans) meant govt not allowed to print more money or devaluate currency
- few trusted the long term finances of Germany (or govts ability to manage them) so loans hard to find
- evidence suggests Bruning (chancellor 1930-2) allowed crisis to worsen as part of his strategy to get reparations cancelled
What was the govts initially strategy ?
- reduce govt expenditure because tax revenues were declining with declining industrial activity
- raise taxes to help balance the budget
the effects were catastrophic and eventually the govt became more interventionalist - a few public work schemes under Bruning were set up and Von Papen looked at allocating unused land to the poor but was too little to late
What was the economic impact of the depression ?
- ❗️1929-32 the volume of world trade fell by 70%
- germanys export trade dropped by 61%
- industrial production fell by 58% (compared to its 1928 level)
- unemployment rose to 6 million (may even be as high as 8 million) in Germany (1 worker in 3)
- by jan 1933 the unemployment rate was 33% compared to 25% in the USA
- those who remained in work saw their wages drastically cut
- bankruptcies increased - 50,000 (1930-32)
- agriculture already in a depression since 1927- prices now fell further, export markets declined and more farmers forced to give up farms
What was the social impact of the depression ?
- an unemployment benefit system set up but it was designed to help 800,000 people ➡️ the amount paid out had to be reduced as the system could not cope and benefits only payable for fixed period, after which people had to cut local authority for help- local benefits even less generous
- women received lower benefits than men (young people also)
- doctors reported increasing cases of malnutrition, TB and rickets (diseases linked to poor nutrition/living conditions)
- ❗️ high youth unemployment eg. Hamburg, June 1933: 39% 14-25 males were unemployed ➡️ led to social issues (crime/ social disorder) and some began to look to extremists parties (KPD & nationalist right)
- women experienced resentment for working when male unemployment so high, nationalists insisted married women should not be working ➡️ May 1932 law passed allowing married women civil servants to be dismissed- setback to cause of equal rights
How did the depression affect the vote?
- to many ordinary Germans it looked as though society as breaking up and was out of control (lost faith in the Weimar government and looked to extremes for a solution)
❗️May 1928: unemployment 1.3m, Nazi votes 2.6%, KPD vote 10.6%
❗️Nov 1932: unemployment 5.4m, Nazi votes 33%, KPD votes 17%
German vs USA impact of Great Depression ?
not comparable to the situation in the USA
❗️in Germany, 1 in 3 was unemployed, industrial production in 1932 was 42% of the 1929 level
❗️in the USA, 1 in 4 was unemployed, industrial production in 1932 was 46% of the 1929 level
- however in the USA the democratic system was never in danger
Why was the depression so detrimental to the vote?
- the economic crisis became a political crisis because of the existing and growing lack of faith in the democratic system therefore the depression accelerated the end of the Weimar Republic because its democratic foundations was so poorly established
- the Nazis were able to offer an alternative to the floundering democracy
What was the grand coalition ?
- 1928 until 1930
- SPD leader Muller’s included 5 different parties (SPD, DDP, Z, DVP, BVP) and was the last majority government of the Weimar republic but by Spring 1930 the coalition was falling apart
- disagreements centred on how to finance the unemployment insurance system which was under growing strain from unemployment
Why did the grand coalition fall apart ?
- disagreements on how deal with the depression
- SPD wanted to see contribution from employers increase and benefit payments maintained at existing levels (reflecting their trade union links)
- the DVP wanted payments to be reduced (reflecting their links with big businesses)
- SPD wanted to decrease taxes and increase welfare spending however the DVP wanted to increase taxes in order to balance the budget
- a compromise could not be agreed ad the cabinet and Muller resigned
🔔 the end of the grand coalition marks the effective end of parliamentary government
How did Bruning become Chancellor ?
- March 1930- June 1932
- Hindenburg was influenced by his right wing advisors (General Groener and General Schleicher) who wanted a more right wing/ authoritarian chancellor
- the army was hoping to start rearming Germany and believed this required a more authoritarian government (independent from the Reichstag)
- the appointment of Bruning is an indication that the army had begun to play a key role in politics
What was Brunings government like ?
- was centre right coaltion but did not include the SPD and could only muster under 40% support of the Reichstag (it was a minority govt)
- Bruning made it clear that if he did not get support for his policies in the Reichstag, he would request the dissolution of the Reichstag and rule by ‘emergency’ decree
Evidence to show Brunings dissolution of democracy?
- 1930 : laws passed by reichstag 98
laws passed by decree 5 - 1932 : laws passed by reichstag 32
laws passed by decree 66 - Brunings response to the Depression was to cut govt expenditure and raise taxes but without majority support in the reichstag, Bruning pushed the budget through using Article 48
- the SPD objected to the use of emergency powers and Bruning dissolved the reichstag and persuaded Hindenburg to call an election
How is the election of Sept 1930 significant ?
- the Nazis made major gains- vote rose to 18% from 2.6% in 1928
- Nazis now the second largest party in the reichstag and communist (KPD) vote also rising
- extremists were gaining support at the expense of pro-democracy parties
- Bruning tried to get Hitler to support a coalition but refused unless chancellor, in the end was only able to form a minority govt with SPD support (who were scared by the rise of extremism)
- the reichstag became unmanageable (the Nazis being abrupt and shouting in reichstag) and the number of emergency decrees rose from 5 in 1930 to 66 in 1932
- political power shifted from the reichstag to the President and his circle of advisors (right-wing)
Why was there growing political violence ?
- echoing the early years of the WR
-1930-33 saw an increase in political violence, the KPD’s Red Fighting League clashed with the Nazi Stormtroopers (SA), attempting to break up the meeting of the other - by spring 1932, the violence was so bad that Hindenburg issued a decree banning the SA (had little effect as membership of the SA grew and violence continued)
How did the Nazis become an electable force ?
- while in prison, Hitler had concluded that the NSDAP would have to campaign through the ballot box to gain power by a ‘legal revolution’