Causes Of The Great Depression In Germany

Decent Essays
The Great Depression shook the the whole world and few countries were unaffected by its consequences, with Germany being one of the worst hit. It was also one of the main causes for the rise of the Nazis which then led to Second World War. The depression can be traced back to the Wall Street Crash or Black Tuesday, October 29th 1929, where the stock market plummeted in America. Germany heavily relied on American loans, and when they were taken away, the Weimar Republic couldn’t do anything which ultimately led to its collapse. Other factors will also be explored such as how the Nazi government played the people’s feelings to get into power, German population and how it affected the different classes and German economy before and after the Great Depression.

Another considerably significant impact of the Great Depression in Germany was on the economy. Germany was previously a leading industrial power but their heavy industry making steel, machinery and chemicals decreased dramatically as demand fell. Capital generated from exports dropped significantly with £630million made in 1929 which subsequently fell to £280million in 1932. Businesses also started to cut production and around 50,000 of them collapsed and by 1932 industrial production had fallen by 42%.This seriously impacted employment, and as demand fell and businesses collapsed more people became jobless with 6.1million people unemployed by 1932. American investors started to call in existing loads and despite its
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