the impact of the depression of 1929 Flashcards
What happened on 24th October 1929 and what did it become known as?
The New York Stock Exchange experienced its worst ever fall in share prices.
It was called ‘Black Thursday’.
When did the following collapse of the Stock Exchange happen?
The following Tuesday, 29th October 1929.
How much did the value of the largest American companies fall by on Black Thursday?
10 billion dollars.
What were the effects of the Stock Market Crash?
- Many companies went bankrupt
- Workers lost their jobs
- Banks stopped lending and called in existing loans
- Millionaires lost their fortunes overnight
- Investors lost all their savings
What parts of Germany did the Wall Street Crash impact?
Its economy, society and political system.
Why did the Wall Street Crash impact Germany’s economy?
The USA had been largely financing Germany’s economic recovery during the years 1924-28, but the Crash meant that all loans had been recalled. Germany’s still recovering economy was hugely impacted as all this money was drawn out to pay back the States.
They were also Germany’s largest overseas market but the Crash meant that exports from Germany had declined as USA imports had rapidly declined.
How much did Germany’s export trade decline by between 1929 and 1932?
61%.
How much did Germany’s industrial production fall by between 1929 and 1932?
58%.
How much had the UK’s industrial production fallen by between 1929 and 1932?
Just 11%.
What did many German companies have to do in response to the Depression?
Declare themselves bankrupt and make workers redundant.
Even those that could still afford to run had to reduce their workforce and cut wages.
Why did banks begin to have some issues in 1931?
Customers had begun to withdraw their money, as they were uncertain as to where the economy was going and did not want to lose it.
What happened in May 1931?
An Austrian bank had collapsed, and the German banking system went into crisis.
What did the government do in July 1931?
They temporarily closed the banks and the stock exchange for two days to provide a break for the financial system.
How many Germans were unemployed by 1932?
Around 1/3 of all workers were registered as unemployed, this not taking into account all those who had not registered.
What is the true estimate as to how many Germans were unemployed by January 1933?
8 million.
Where in Germany did the Great Depression impact most?
The main industrial areas, such as the Ruhr, Silesia and the main port cities such as Hamburg.
Why were German farmers suffering during the Great Depression?
The prices of exported agricultural products had collapsed, as well as the demand and therefore sales.
What restrictions were placed upon the Weimar benefits system?
The unemployed were only able to claim state benefits for a fixed period, after which they had to apply to local authorities for more where local benefits were less generous.
What types of towns had been hit worse than most during the Great Depression?
Those that depended on a single industry.
What were made as unemployed Germans began to be evicted due to not affording rent?
Tent cities and Shanty towns began to appear on the edges of large cities, such as Berlin.
What consequences were there to having a large portion of unemployed young people?
Gangs of young men had started to form as they had little prospect in the foreseeable future.
Why had the KPD recruited some of the working-class youths?
To join political demonstrations and engage in street battles with their opponents - the youth were now much more susceptible to joining extremist political parties.
