The impact of the depression Flashcards
Why did the depression start
A financial crisis in October 1929 known as the Wall Street crash hit the USA, American companies and banks went out of business and millions lost their jobs.
What are two economic impacts of the depression
1) Americans had bought many German goods such as cars, electrical equipment and clothing but they could not afford these things anymore due to the depression so German factories shut down and millions lost their jobs.
2) Troubled American banks demanded back the money they lent to Germany after the First World War. German banks tried to reclaim the money from German businesses. They could not pay and went bankrupt
What were two political impacts of the depression
1) People listened to different often extreme political parties that promised radical solutions to Germanys problems and ways of improving their lives
2) In the 1930 election the communists increased their number of seats in the reichstag to 77 (from 54) and maxi support increased from 12 seats in 1928 to 107 seats in 1930.
What was a social impact of the depression
Many people were soon living on the streets (jobless, hungry and angry at their political leaders who they blamed for their problems)
