Economic Impact On Germany

2005 Words9 Pages
The impact of the Great Depression in Germany was significant because it affected virtually every section of German society, and was significant both in the short and long term. The Great Depression was caused by the Wall Street Crash in the USA in October 1929. Germany was disproportionately affected compared to other European countries, as Foreign Minister Stresemann had secured loans worth millions of dollars from American banks in order to boost its economy in the 1920s, and it had an impact on Germany economically, socially and politically in the 1930s. The significance of this impact can be measured by examining the sections of society impacted, the number of people impacted and the duration. The economic impact was the first to be felt and also affected the majority of Germans, along with the social impact. However, it was the resulting political impact that would have a much greater and long-lasting effect on Germany and its population. Therefore, it was overall the most significant outcome. The impact of the Great Depression in Germany was significant because the volume and nature of foreign trade was greatly affected. This is shown partly by the significant decline in exports; in 1928 Germany exported £630m worth of goods, but by 1932 that figure had fallen to just £280m. Imports also saw a drastic fall, as the German government wanted as many products as possible to be produced within the country to protect the economy during the Great Depression. In 1928,
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