The Impact of the Depression on Germany (AQA GCSE History)
Revision Note
Written by: Zoe Wade
Reviewed by: Natasha Smith
The Great Depression & its Impact on Weimar Germany - Summary
Historians identify the Great Depression as the ‘turning point’ in the success of the Weimar Republic
Many people in Weimar Germany were experiencing a ‘Golden Years’. Extremist parties like the Nazi Party were unpopular in elections. Many historians would argue that, without another economic depression, the Weimar government would have continued to gain popularity and strength. The death of Stresemann on 3rd October 1929, weakened the government. Some historians claim that, without Stresemann, the Weimar government lacked decisiveness.
Other historians suggest that Weimar Germany was doomed to fail. The foundations of the Republic were insecure. The Weimar Constitution contained some significant loopholes. The biggest issue was the wording and overuse of Article 48. Historians also argue that Stresemann’s connection of the USA’s economy to Germany through the Dawes Plan would have led to economic collapse sooner or later.
In either case, the Great Depression signified the end of the Golden Years and the true beginning of Hitler’s rise to power.
The Wall Street Crash
The USA’s economy was growing at such a rapid rate that, by October 1929, stockbrokers began to speculate that the market would decline
Americans from all areas of society bought shares in the 1920s
Working-class Americans could not afford for their share prices to drop too far
Share prices began to fall
Shareholders rushed to sell their shares before their value dropped too significantly
Between 24th and 30th October 1929, the USA’s economy collapsed
This event is called ‘Black Thursday’
People sold 13 million shares
Prices plummeted due to the amount of shares available
Shares that were worth $20,000 on the morning of 24 October 1929 were worth $1,000 by the end of the day
By 30th October 1929, investors had lost $4 billion
This event is called the ‘Wall Street Crash’ as Wall Street is where the Stock Exchange is based in New York
Impacts of the Wall Street Crash on Germany
The Wall Street Crash created economic collapses across Europe, including Germany
The Dawes and Young Plans connected Britain, France and Germany to the USA’s economy
The USA's money allowed the payment of reparations and First World War loans
The USA began to recall its loans to save its economy
This jeopardised the economies in Europe
How did the Wall Street Crash cause an economic depression in Germany?
The effects of unemployment
The economic issues triggered an employment crisis
German banks recalled loans, which forced businesses to close and workers to lose their jobs
Other countries stopped purchasing German goods, which increased unemployment
Unemployed workers did not spend money on goods or services
This resulted in even more companies having to make redundancies
By September 1931, 4.3 million German workers were unemployed
40% were factory workers
Half of all 16 and 30-year-olds did not work
By January 1933, unemployment hit 6.1 million people
How were Germans affected by unemployment?
The workers
The workers had to pay increased taxes to support the unemployed
Businesses were forced to cut the real income of workers
The value of wages was 70% of the 1928 average wages
The savers
When share prices fell, the value of savings dropped
If people became unemployed, they would not have any savings to survive on
The unemployed
The government had to cut unemployment benefits
This increased the hardship of the unemployed
In Berlin, the arrests for theft rose by 24%
The homeless
Many unemployed workers established makeshift houses
Homelessness increased violence on the streets, particularly among unemployed young men
Examiner Tips and Tricks
A question could ask you in what ways were the German people affected by the Depression.
For this question, you should focus on a wide range of groups and their differing experience of the Depression. Examples of these groups are:
The working classes
The unemployed
Businessmen
Our exam skills pages give further guidance and advice on the 'In what ways' question
The Depression and the growth in extremism
People blamed the Weimar government for the economic crash
People blamed the government for linking Germany's economy to the USA through the Dawes and Young Plans
Chancellor Brüning's policies to tackle unemployment failed
Brüning had no support from the Reichstag
From 1930-32, Brüning enacted the emergency article (Article 48) 115 times. He was ruling Germany like a dictator
The German public started to believe that the Weimar government was inefficient and corrupt
Extremist parties offered alternatives to government policies during the Great Depression
The Nazi Party promised to reverse the Treaty of Versailles and make Germany strong again
The KPD promised to improve the workers' living conditions and tackle unemployment
Election results, 1928-1932
A growth in extremism can be seen through the election results in Weimar Germany
Worked Example
Describe two impacts of the Depression on the Weimar government
[4 marks]
Answer
One impact of the Depression on the Weimar government was the loss of trust (1). To tackle unemployment, Brüning used Article 48 115 times. This made him look like a dictator and people began to turn against the government (1).
Another impact of the Depression was the increase in extremism (1). By 1932, the Nazi Party became the biggest party in the Reichstag. This shows a turn against the Weimar government and moderate parties like the SPD (1).
Examiner Tips and Tricks
In a 'Describe two' question, you need to provide two points about the issue outlined in the question. For each part, you should:
identify - write a relevant point based on the question topic (1)
In the example, one point could be about the growth in unemployment.
describe - add relevant specific information about the point you have made (1)
In the example, you could state that Brüning lost support in the Reichstag trying to pass policies to reduce unemployment.
Our exam skills pages give further guidance and advice on the 'Describe' question
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