The Great Depression (1929-32) Flashcards
What caused the Great Depression, and how did this impact Germany?
- The US economy collapsed in late 1929 due to the Wall Street Crash, which triggered a global economic crisis
- Germany was hit by this the hardest of all as not only did US banks stop renewing short-term loans, but they also called in loans from abroad
List 5 areas of the German economy that were affected by the Great Depression.
- Practically all, but more specifically:
- employment
- industry
- agriculture
- banking
- welfare
Give 3 figures on unemployment.
- In 1932, unemployment reached 30%; its highest level ever
- This was roughly 5.8 million workers
- However, this doesn’t take into account those who had to become part-time workers as their employer wanted to reduce their wages
List 5 ways that unemployed people tried to cope.
- Sold their possessions
- Relied on churches for charity
- Children joined gangs and turned to petty crime
- There was an increase in sex work
- Some turned to begging and squatting in disused office buildings
Give 2 figures on industry/ industrial production.
- In 1932 industrial production was half of its 1928 levels
- Around 50,000 German firms closed between 1929 and 1932
Were German business able to find a market abroad? What impact did this have?
- No, therefore exports also fell by 55%
Give figures on banking.
- 5 major German banks closed in 1931
Give 3 ways that the Great Depression affected agriculture.
- There was a decrease in domestic demand as Germans had less money to spend on food
- German agriculture wasn’t as efficient as other countries’, so they couldn’t export food
- The price of food fell by 45% between 1929 and 1932
What happened to the government in 1930, and what happened as a result of this?
- The coalition led by Hermann Müller (SPD) collapsed
- It was replaced with one led by Heinrich Brüning (ZP)
Why had Müller’s government collapsed?
- He agreed to spending cuts, but refused to sanction welfare cuts, although the cost of unemployment benefits was rising
What other impact did the Great Depression have on the political situation?
- Political violence re-emerged
- This usually involved the Nazi SA, the Communist ‘Red Front’ and the nationalist ‘Stahlhelm’
What impact did the re-emergence of political violence have?
- It indicated that Weimar democracy had failed as not only could it not improve the economic situation, but it also couldn’t keep law and order
List 3 decisions Brüning made to try to deal with the situation.
- Cuts in government spending, especially welfare payments
- Wage cuts
- Higher taxes
How popular were Brüning’s policies? Give 2 details.
- Not popular at all
- He had to use Article 48 to have them passed
- He was nicknamed the ‘Hunger Chancellor’ by the people, as the economic situation only got worse
Why did Brüning choose to deal with the economic crisis in this way?
- He did not want to risk creating inflation, or even hyperinflation