The Impact Of The Germany On The Recovery Of Germany

Depression and Nazis The depression of 1929 occurred due to the Wall Street crash in America. America had been lending money to Germany in a plan called the 'Dawes plan'. Once the wall street crash occurred, America wanted their money back and this lead to German businesses and banks closing. As a result of this people turned to the politicians for an answer.

John Maynard Keynes clearly foresaw the future issues politically and economically in Germany. The German people did not like the reparations, which caused the Nazi party to rapidly grow in popularity in Germany over the next decade, which would over the following two decades cause an uproar and the second world war. [CITE cheaptalk]. The German economy was weak already due to the first world war, and having a harsh reparation made it very difficult to grow back the economy to it’s natural state (before the war). This combined with the loss of 10% of German territory, merchant ships confiscated, and other terms, easily aggravated the German people. As Keynes predicted, the Germans could not repay back their reparations, falling behind on payments, causing a devaluation of the German currency. [History.com] “That

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

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

By 1924, after years of crisis management and attempts at tax and finance reform, the economy was stabilised with the help of foreign, particularly American, loans. This relative "golden age" was reflected in the strong support for moderate pro-Weimar political parties in the 1928 elections. However, economic disaster struck with the onset of the world depression in 1929. The American stock market crash and bank failures led to a recall of American loans to Germany. This development added to Germany's economic hardship. Mass unemployment and suffering followed. Many Germans became increasingly disillusioned with the Weimar Republic and began to turn toward radical anti-democratic parties whose

The various treaties signed by Stresemann also helped the economic development in this period. The Dawes gained significant investments from the US and the Young Plan reduced the reparations Germany would have to pay, and set a timescale for how long they would have to pay. This gave the country some ‘breathing space’ to repair and develop its own economy. The young plan, for example, reduced the amount they would have to pay by 1700 million marks than they would in conjunction with the Dawes plan. These plans, alongside the introduction of the rentenmark meant there was an increase in German capital in this period, which can certainly be classed as a period of economic development.

The stock market crash October 29, 1929 was apart to a world wide financial crises. World War I was a boost for agriculture in the United States. While Great Britain, France, and the Soviet Union was victorious in World War I, the war proved devastating economically. It brought heavy debt and much of their resources were used to pay the debt of the war. Much of Europe’s major cities were destroyed. Asia and South America provided exports during the war and continued to do so after the war ended. This extended the economic recovery in Europe even further. Germany was under the Treaty of Versailles thus in debt to the entire cost of the war that was to be paid in foreign securities. This was a significantly large problem and the United States agreed to loan money to Germany in order to help stabilize its economy. Because United States Industry was unaffected by the war they were able to turn its concentration to consumer production. The United States became a “creditor nation” because of its prosperity and was able to lend money to other countries. After affects of World War I to farming and food industries, the roaring twenties and inequality of wealth, risky investments with leveraged stock purchases caused the stock market crash were causes of the great depression.

The United State loaned Germany money to pay for the many wars they were involved in around the early 1920s. Germany’s economic growth began to increase but was soon diminished by the United States’ stock market crash. This crash that occurred in New York City, was a significant cause of the Great Depression. The loans that were

However, the Dawes stopped working in 1929 when the United States faced a massive stock market crash and recalled their loans to Germany. As this left Germany unable to pay their reparations to the Allies, the German government began printing more currency in an attempt to pay their reparations. However, this did not work and instead caused the Germans to have a hyperinflated economy and mass unemployment. While this crisis was occurring, the Nazis were gaining more support because their demands included a plan for building a stronger economy that seemed viable to many. For instance, they demanded, “that every citizen shall have the possibility of living decently and earning a livelihood.”

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

The Germans kept experiencing experiences. Everything had changed for the better ever since Hitler took over and they began to feel like a superior and dominant nation once again. When Hitler was first appointed to full power, the economy was facing three massive problems; International debt, agriculture stagnation and unemployment. Hitler and his party were fast to establish and deal with the problems, in hope of finding solutions. Unemployment instantly dropped to just 3.8 million after one year under the Nazi party from the initial 6 million. Unemployment rates continued to drop until 1939 when numbers were as little as 0.3 million. Hitler took over Germany and instantly millions of jobs were available, this was a great image for the Nazi Party in the long run. Germany was acknowledge as one of the largest countries in the world to escape and come out of the Great Depression which was a surprise to almost all nations. The strategies used by the Nazi Party to improve the nation’s economy was seen as a massive popularity boost at the time. The act of repudiating the Treaty of Versailles was a massive positive to the German public. This saw Hitler regain territory which was once lost and the increase of German military. The country was so financially stable they were offered to host the 1936 Summer Olympics in the nation’s capital, Berlin. This again was a massive propaganda boost for the Nazi Party as all eyes were virtually placed on the success of the Olympic Games. Positive after positive continued to glorify the nation and Germans were truly happy under Hitler’s

Germany was on an economic roller coaster from the early 1930’s until the rise of the Berlin wall. Germany escaped a so called Great Depression of the early 30’s with the rise of the National Socialist Party. At the height of an economic boom, Germany entered into a second World War and as a result nearly be destroyed. After Germany’s surrender in 1945, the country fell into another depression greater than the last. Germany as a whole was divided into two separate sectors.

The economy appeared to have stabalised with the introduction of the Dawes Plan. Before 1924, Germany was experiencing hyperinflation. The old Papiermark was rapidly depreciating and so Germany had to print more and more of it to pay reparations. By December 1922

When Stresemann came into power, there was a major financial problem in Germany; Hyperinflation. This was caused by Ebert who printed more money than they had gold in the reserves. This led to the Reich mark becoming almost worthless in comparison to the dollar or pound over a very short period of time. Stresemann solved this major issue by introducing a new currency which solved this problem. This new currency was called the Rentenmark. This helped with Germany’s recovery as the Rentenmark helped increase production levels and therefore

The economy's recovery was very slow, but now most people had work, homes, food, and hopes for the future. After the revolt, the government decided to outlaw the Nazi party.