The impact of and responses to the Great Depression, 1929-32 Flashcards
1
Q
What occurred in 1929?
A
- The Wall Street Crash - American economy experienced a depression as bankruptcies and a banking crisis ensued
2
Q
How did the Wall Street Crash effect Germany?
A
- The German economy was heavily dependent upon US money and was therefore very exposed when US investment dried up and loans were recalled
3
Q
Examples of the German economy being severely affected?
A
- National income shrunk by 39% between 1929 and 1932
- Industrial production declined by more than 40%
- Unemployment rose to 6 million by 1932 - many felt insecure and desperate
4
Q
Before 1931, responses of the German government to the Depression…
A
- Served to deepen problems and increased political disillusionment
5
Q
what did members of Muller’s Grand Coalition government disagree over?
A
- Whether the response to the rising unemployment should be to cut welfare spending
6
Q
Who opposed Muller to not cut welfare spending?
A
- President Hindenburg - resulted in Muller’s government falling - due to disagreements
7
Q
Who replaced Muller as chancellor?
A
- Zentrum Party - run by Bruning
8
Q
Was Bruning popular in the Reichstag?
A
- No - relied on President Hindenburg pushing through his measures using the emergency Article 48 provisions of the constitution
9
Q
How did Bruning worsen the problem?
A
- Followed with policies of cuts and austerity in 1930, which deepened the Depression and increased poverty
10
Q
What contributed to Hitler’s rise to power?
A
- Democratic governments failed to come up with effective solutions to resolve the Great Depression - viewed as weak and inefficient
11
Q
How did the Depression effect the living standards of workers?
A
- One in Three people affected by unemployment
- Reductions in the level of welfare support further increased the suffering, leaving many desperate
- Many business owners went bust
