What was the Great Depression and its impacts 1.2 Flashcards
what caused the great depression
the wall street crash
when was the wall street crash
1929
what happened with the wall street crash
wall street stock market in america crashed, which caused an international economic crisis
what did the wall street crash mean for germany ( thinka about USA)
that the US couldn’t lend them money anymore ( dawes plan needed to be suspended)
after the wall street crash, the USA
couldn’t afford to pay loans to germany anymore so suspended them and also demanded some old ones to be paid back immediatly
why was the wall street crash a problem for germany
Germany’s economic recovery was very unstable and was dependant on the loans from the USA, so without american aid, their economy collapsed
what were the consequences of the wall street crash on germany (3)
- economy collapsed
- industrial production went into decline ( factories closed and banks went out of bussiness)
- there was mass unemployment ( by 1932- 6million
overview of wall street crash
everyone had shares they had bought by getting loanes from banks, when people realised it wasn’t sustainable they all tried to sell.
Because of everyone trying to sell, the share value decreased so people sold them for less than they bought it and weren’t able to pay back their loans,
banks had no money anymore so couldn’t give out loans and went bankrupt
economic impacts of great depression (3)
why
- unemployment rose
- prices increased for everything
- homelessness increased
because stock market crashed and also trade collapsed
social impacts of great depression (4)
- increase in crime and theft rates
- prostitution was on the rise
- suicide rates increased
- malnutrition rose
political impacts of great depression (2)
detereorating economic conditions created an angry, frightening, financial struggling audience making people turn to more extreme political systems like fascism and communism and making people hate the weimar gov.
nazis got more seats because everyone hated the weimar gov. and the nazis had promised to be the opposite
what happened to the chancellor Müller in 1930
he resigned and was replaced by Brüning
what did brüning do (3)
- increased cost of imported food to help agriculture but this raised food prices
- salaries and pensions were reduced and taxes increased
- social services cut back and unemployment benefits reduced
were brünings policies good
no, it made everyday life even harder
what did brünings policies result in
lack of government support by the citizens as his policies aimed to improve economy, but in the meantime reduced living standards
