Unemployment And Its Impact

Question 1

What did the German economy depend upon ?

Answer 1

It depended upon US loans which and helped remove hyperinflation

Question 2

When did the US stock market collapse ? What other problem arises at a similar time

Answer 2

October 1929- Wall Street crash
Stressmann dies- only person who was thought to be able to save Germany

Question 3

What happened when the stock market crashed ?

Answer 3

Banker and financiers in the USA now called for their loans from 1924 back (Dawes plan)
German exports fell rapidly after 1929
Great Depression in Germany
Unemployment rises as employers sacked workers
German farmers who already had problems now faced extreme hardship

Question 4

What did the Brünig government of 1930-32 tried to deal with the problems of the Wall Street crash of 1929? Previous government, spending/ tax, civil servants

Answer 4

• the government before it (Müller) fails to deal with it and steps down
• new chancellor Brünig thought the best way to deal with it was to reduce spending and increase tax (introduced in 1930) article 48 is used to decree a wage cut of 2.5% to civil servants
• increased tax on income, sugar and introduced new taxes
• 1931 made massive pay cuts of up to 23% to civil servants and 60% cut to unemployment benefit

Question 5

What did these all cause ?

Answer 5

Harsh remedies made the crisis worse
Business failed to continue
Brünig disliked and called the hunger chancellor

Question 6

What are some stats with unemployment in 1930’s Germany ?

Answer 6

• total unemployed in 1932 exceeded 6 million
• 4/10 Germans unemployed
• unlike 1923 the fear wasn’t hyperinflation but unemployment
• people feared communist revolts with parties like the German communist party growing

Question 7

What happens to the Weimar government ?

Answer 7

• little agreement to tackle unemployment and poverty
• no majority with the Müller relying on president Hindenburg and Article 48 (seen as the death of Weimar)

Question 8

What happens in the election of September 1930?

Answer 8

• Nazis make a breakthrough winning 107 seats 2nd largest behind social democrats

Question 9

What happens to Brünig and Germany as a whole in 1930-31?

Answer 9

• reduction of government spending lead to loss of support
• German people tired of food shortages
• German banks collapse in 1931
• Brünig resigns in 1932 and allows for the right wing parties like Nazis to gain support due to his mistakes

Question 10

What was one of the reasons for why the Nazis where gaining support in the 1930’s?

Answer 10

• the fear especially from middle classes of a communist take over

Question 11

What happened to the KPD after the failure of the spastics revolt ?

Answer 11

• tried to win reichstag elections
• it was the largest communist party in Europe outside of the Soviet Union
• it wasn’t a match for the Nazis as the communists had 13.2 percent of votes in 1932 whereas the Nazis had a massive 30.1 percent