Workbook: Depression (1929-32)

Question 1

How did the Wall Street Crash contribute to the Depression in Germany?

Answer 1

• US loans and investments immediately dried up. America then demanded repayments of its short-term loans
• Demand for exports collapsed as other countries reduced their imports, world trade slumped
• Without overseas loans and export trade falling, prices and wages fell and bankruptcies increased

Question 2

How far did the Wall Street Crash contribute to the Depression in Germany?

Answer 2

Even without the WSC, the German economy would have faced serious depression. The WSC was the final push that brought the Weimar economy crashing down - it determined the timing of the depression, and it made the effects much worse. But it was not the only cause of Germany’s Great Depression

Question 3

Name 4 effects the depression had on Germany’s economy?

Answer 3

1. National income shrunk by 39% between 1929-32
2. Number of unemployment rose to 6 million (1/3 of people of working age were jobless)
3. 50,000 businesses went bankrupt
4. 5 major banks collapsed in 1931