In order to access the importance of the Great Depression, we must consider the different ways in which the Great Depression was significant. The Great Depression was primarily known for the impact on Germany and the rise of Hitler. It was a very remarkable event. The impact was mainly on the Weimar Republic. Germany played a big role in the Great Depression. The Great Depression affected Germany politically, economically, and socially. The Great Depression made Germany lose a lot of power. Germany needed a lot of help at this time. Germany was trying to figure out ways to get loans so that they could fight in wars. Also at the moment, Germany still had to worry about the rise of Hitler.
In this essay I will assess to what extent the Depression was significant for Germany and explore how it impacted economic, political and social aspects of Germany during this time. I think that the Depression was extremely significant for Germany in many ways, with its paramount impact being its role as a catalyst in the rise of Adolf Hitler and Nazism within Germany, ultimately resulting in the Second World War.
This was the longest and most severe slump ever to hit the industrialized world, which lasted through most of the 1930s. The Great Depression caused mass unemployment, wide spread poverty and despair. The German economy was especially vulnerable since it was built out of foreign capital, owing mostly to debts to the United States and was very dependent on foreign trade. Adolf Hitler knew his opportunity had arrived to strengthen extreme political movements that promised to end the economic problems.
Before the Great Depression, the Nazis gained 12 seats and 2.6% of the vote in the May election of 1928. Despite this, by July 1932, Hitler gained 230 seats and 37.3% of the vote in the Reichstag. This is a dramatic increase in popularity and support with much of this success due to the Great Depression. In October 1929, the American stock market crashed, plummeting the US into a disastrous economic depression known as the Wall Street Crash. US banks recalled their loans in order to pay off their debts, but German companies were unable to pay. German business began to close and millions lost their jobs, as Germany was so dependant on US loans in order to pay their reparations. The reality of the situation made a mockery of the weak, short-lived coalition governments in the Weimar constitution as it highlighted that Germany economic recovery was dependant on US loans and hence Germany was not independent. This enabled the extremist parties to claim they knew exactly how to solve this crisis and Hitler promised the public an authoritarian government in which he could achieve Autarky as well as jobs for the thirteen million people now unemployed. This aspect of unemployment gained Hitler
The Great Depression played a big role in helping the Nazi Party capture power. Many nations were suffering from the Great Depression in 1930, including Germany who had to pay for the war reparations. During this period of economic and politic crisis, the country had been easily influenced by the politics parties. They wanted someone who is capable and had what it takes to be their leader to lead them through the huge crisis that they were facing. Most Germans who are in desperate state as they wanted Germany to be like once, able to be proud of and not in such a state where they had to struggle to fulfill the almost impossible terms of the Treaty of Versailles. They considered that period as a disgraceful decade in their history. Due to
The Great Depression lasted from 1929 to 1939 and was the worst economic worsening in the history of the industrial world. It began when the stock exchange crash of October 1929, that sent Wall Street into a panic and drained variant investors. Over future many years, shopper disbursement and investment born, inflicting steep declines in industrial output and employment as failing firms set off employees (Young, William H. and Nancy K. Young). By 1933, once the Depression reached its lowest purpose, some fifteen million Americans were jobless and nearly 0.5 the country’s banks had to fail. Some of the effects include stock market crash, bank failure, reduction in purchasing, american economic policy, smoot-hawley tariff, and drought conditions.
On October 29, 1929, also known as Black Tuesday, the stock market collapsed, causing people to sit in awe as they watched their fortunes disappear. The stock market crash was only one of the factors that jumpstarted the Great Depression. Banks failed to operate as a result of withdrawal of money from countless amounts of people. Although there was the decline of housing and automobile production in this era, factories encountered the problem of overproduction. The supply didn't not meet the demand of the consumer so companies faced bankruptcy and workers were laid off. 13 million people were jobless and the unemployment rate ascended to 25% during the Great Depression. With no income, people were not able to provide for their families, which
In the mid 30’s Germany was in a perpetual state of economic decline. The First World War had decimated all economic growth, increased inflation, and made unemployment an all-time high. From the suffering of
The Great Depression was a recession that lasted about 10 years. It affected all aspects of society and had a couple reasons as to how the Great Depression came about. The causes of the Great Depression can be traced to the 1920s, the U.S. economy led to consumers taking high risk investments, buying things on credit and the mass production of goods. One of the main reasons being that traders sold 12.9 million shares of stock in one day, triple the usual amount. Over the next couple days, the prices of stocks fell 23 percent in the stock market crash of 1929. But the Great Depression really started in August when the economy failed.
Imagine having no money or stocks, and prices were going up, and there were no open jobs. The Great depression was hard for everyone, they had to deal with market crashes, Herbert Hoover, starvation and other things. Rich or Poor you were affected by the Great depression.
In Germany the economy was especially vulnerable since it was built out of foreign capital, mostly loans from America and was very dependent on foreign trade. When those loans suddenly came due and when the world market for German exports dried up, the well-oiled German industrial machine quickly ground to a halt. As production levels fell, German workers were laid off. Along with this, banks failed throughout Germany. Savings accounts, the result of years of hard work, were instantly wiped out. Inflation soon followed making it hard for families to purchase expensive necessities with devalued money. Overnight, the middle class standard of living so many German families enjoyed was ruined by events outside of Germany, beyond their control. The Great Depression began and they were cast into poverty and deep misery and began looking for a solution, any solution. By mid-1930, amid the economic pressures of the Great Depression, the German democratic government was beginning to unravel. The crisis of the Great Depression
After the stock market crash and the banks began to close the public started to lose faith in the nation’s economy. These events are partly responsible for the Great Depression. The public began to withdraw their money from banks causing even more damage. In an effort to improve the situation President Roosevelt and congress passed the Emergency Banking Relief Act and the Federal Deposit Insurance Corporation Act. “Confidence was further enhanced by the creation of the Federal Deposit Insurance Corporation (FDIC), under the Banking Act of 1933, passed in June, which guaranteed that government insured all bank deposits up to $5,000”(Barnes & Bowles, 2014). These acts restored the public’s confidence back into banks and encouraged the public
There were many causes of the Great Depression of the 1930’s. Some of the major reasons the Depression took place, listed from the most important to the least, are the cycle of lay-offs, the stock market crash, credit buying, natural disasters, and government policies.
There are many periods that I would like to learn about because all have a very interesting history behind them. The Great Depression however is the period in which I would like to live in because although it was not the greatest period in history we have learned from it. We all know that the Great Depression had many factors that caused the economy to be unstable.It is great that the companies where able to produce more in quantity of their goods but that was not as good when they did not raise the market as well. Having the experience to see how many families had to live through hardship in order to survive with many losing their homes must have been very hard for them.Therefore, it is something that I would have liked to be part of but
The great depression began with the crash of the stock market on October 29th, 1929 but it really started on October 24th when 12.9 million shares of stocks were sold in one day. Four days later, on black Thursday, stock prices fall by 29 percent. About 30 billion dollars worth of stock will simply ‘disappear’ come mid-November. All of this will come to be known as the stock market crash of 1929.