The Impact of the Depression 1929 Flashcards
When was the Wall street crash and was the impact in America?
Occurred late October 1929
First crash 24th October 1929
Second crash 29th October 1929 with $10 billion lost from the largest US companies
-Companies closed and unemployment grew
-Banks called in all loans
-Prolonged economic depression in the USA
What was the impact of the wall street crash on Germany?
Economic recovery between 1924-1928 had been financed by US loans
=Between 1929 and 1932 German exports dropped by 61% and industrial production fell by 58% from its 1928 level
=Germany entered deep depression
Between 1929 and 1932 what did German exports drop by?
61%
Between 1929 and 1932 what did German industrial production fall compared to its 1928 level?
58%
Why was Germany so badly affected by Wall Street Crash?
=Foreign trade collapses and prices fell
-Companies bankrupt and unemployed grew
-Banks struggled as customers withdrew money and loans were unable to be paid
-Banking crisis
-Austrian Bank collapsed in May 1931
then German banking system followed into crisis
July 1931 the Government closed banks and suspended the stock exchange for 2 days
When did the Austrian Bank collapse?
May 1931
By 1932, what fraction of German workers were unemployed?
1/3 rd
By Jan 1933 how many were actually unemployed?
8 million
How did the Depression impact rural areas?
-Farming already in recession by 1928
prices of agricultural products collapsed further
-exports declined even more
-food sales in Germany fell as people could no longer afford healthy food
-Many farmers had to give up land due to being unable to pay back loans to the bank
Why was poverty from the great depression so significant?
Mass unemployment overwhelmed welfare budget
By 1930 state benefits limited and means test introduced
women recieved less then men
Young people less than adults
Single industry towns hit hardest
e.g Brand-Erbisdorff
Why was Brand-Erbisdorff hit so hard by the depression?
Small town was a centre for glass making
By April 1931 the local glasswork had closed down and nearly half the population was receiving welfare benefits. However since the majority had been unemployed for 2 years they no longer qualified for state benefits instead they had to rely on the local authorities
What was the social impact of the great depression?
=Increasing poverty
Though the Weimar Republic had a well-developed system of unemployment benefits the cost was quickly overwhelming the welfare budget
=increase in poverty and disease
How was the youth effect by the great depression?
High rates of unemployment
In June 1933, in Hamburg, unemployment rate among males in the age group 14-25 was 39% and females 25.2%
Juvenile Crime, though convictions did not increase, there was a growth in young men congregating in public spaces and anti-social behaviour
Political extremism
Number of young men in extremist groups increased
Government Schemes to help the Youth
-Established day centres, allowing the youth to participate in work-related activites
Emergency labour schemes were unemployed youth took unskilled manual labour in return for wages under the legal minimum = seen as unpopular with strikes for higher wages
Though there was a voluntary labour scheme for young people to be sent from cities to residential work camps for six month period, however finding a job was still hard
How were women affected by the depression?
The female proportion of the total workforce increased during the depression
However the dismissal of millions of workers during the depression sparked the debate whether “double earners” (women) should work
=campaign but right wing parties was successful in 1932 when a law passed which allowed married women civil servants to be dismissed
After the law passed around 1000 women were dismissed
=indication that the depression was a serious setback in regards to womens rights
