The Depression - WR Flashcards
What led to the Great Depression?
October 1929: Wall Street Crash.
American companies and banks went out of business and millions lost their jobs.
Why did the Great Depression hit Germany?
Foreign banks especially American ones, lent huge amounts of money to Germany to build factories and businesses.
This created more jobs, money and a better standard of living.
Therefore, as a result of the Wall Street Crash, the US had to stop lending money and demanded all loans to be repaid.
What was the economic impact of the Great Depression?
Americans had bought many German goods, such as cards, electrical equipment and clothing. They could not longer afford it as a result of the depression, so German factories had to shut down and millions lost their jobs.
Troubled US banks demanded the money they had lent to Germany after WW1. German banks tried to reclaim this money from German businesses, but they couldn’t pay and went bankrupt.
What was the social impact of the Great Depression?
Poverty.
Many people were soon living on the streets, jobless, hungry and angry.
Workers had their wages cut and some lost their jobs.
Taxes were increased and the government made cuts in unemployment benefit.
What was the political impact of the Great Depression?
People listened to different, often extreme political parties like communists or the Nazis, that promised radical solutions to Germany’s problems and ways of improving their lives.
1930s elections: the Communists increased their number of seats in the Reichstag to 77 from 54. Nazi support also increased from 12 seats to 107.
Who did the working-class people turn to as a result of the Depression?
Working-class turned to the Communists who offered solutions for unemployment and failing wages.
Who did the middle-class and upper-class people turn to as a result of the Depression?
Middle-class and upper-class people turned to the Nazis as they were afraid of Communists gaining power and taking over their businesses.
Why did most Germans turn to the Nazis?
Because they wanted a strong government who promised to restore law and order and workable economic policies.
Why did most Germans turn to the Nazis?
Because they wanted a strong government who promised to restore law and order and workable economic policies.
