9 - The Impact of the Depression 1929

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  • The Impact of the Depression 1929
    • Economic Impact
      • October 1929 - Wall Street Crash
      • American banks had lent money to Germany to help with reparations
        • All these loans got called in by American banks
      • USA reduced their demand for imported goods form Germany
        • USA had been Germany's largest demander of imported goods
      • 1929-32 - Germany's export trade dropped by 61%
        • Industrial production dropped by 58% from it's 1928 level
      • Many companies declared themselves bankrupt
        • Workers were made redundant
          • Or their wages and hours were reduced if they were fortunate
      • July 1931 - the government closed the banks + the stock exchange for 2 days
        • Only gave temporary respite
      • By 1932 - 1/3 of all workers were registered as unemployed
        • Not all unemployed had registered
          • Estimated that Jan 1933 8 million workers were unemployed
      • Industrial areas (the Ruhr + Silesia) were hit badly by the Depression
        • Severe cuts to the civil service workforce + wage reductions
      • Farming had been affected badly during the golden age
        • Depression - Prices collapsed, exports declined + sales of food fell
          • Many gave up their farms to repay bank loans
    • Social Impact
      • Poverty
        • The Weimar Republic had a good unemployment + welfare system
          • But by 1930 the costs were too much
        • The unemployed were only entitled to benefits for a fixed time
          • After they had to apply to local authorities for welfare
        • Women + young people received less benefits than men
        • Diseases linked to malnutrition began to increase
          • TB + rickets
          • Suicide rates increased
        • People couldn't pay rent so were evicted
          • Shanty towns began to appear
      • Young People
        • Crime
          • Overall rate of crime didn't increase
            • But number of youngsters accused of crime did increase
          • Significant increase in youths charged with offences against the state
            • Assault + threatening behaviour as well
              • Reflected deteriorating political state in Germany
        • Political Extremism
          • Increase of young men in extremist political organisations
            • KPD recruited some working class youths
              • Political demonstrations + street battles
          • Hitler Youth + SA offered unemployed boys + young men prosperity
            • Food, uniform, shelter + the excitement of fighting street battles
              • However youth membership was unstable
            • Girls + young women less involved
        • Schemes to help the young unemployed
          • Day centres were established for young people
            • They could participate in work-related activities
          • Emergency labour schemes
            • Unskilled manual labour for below minimum wage
              • Schemes were unpopular
                • Resulted in 2 strikes - Oct 1930 + June 1932
                • They could participate in work-related activities
          • Voluntary labour schemes
            • Residential work camps for 6 months
              • Offered few prospects but fulfilled the government dream of getting the youths off the street
      • Impact on Women
        • Female proportion of the workforce increased
        • Depression reignited debate if women should be in jobs
        • Right wing campaign against 'double-earners'
          • May 1932 - law allowed women in civil service to be dismissed
        • The Reich postal service dismissed 1000 married women from employment
    • Political Impact
      • Collapse of the Grand Coalition
        • Coalition which represented 5 parties - very broad
        • Falling tax revenues led to a deficit in the state budget by the end of 1929
          • The right wanted to reduce benefits, left wanted to protect the benefits levels
            • March 1930 - Muller resigned
              • Bruning succeeded him
        • Groener + Kurt Von Schleicher influenced Hindenburg's appointment of Bruning
          • Both men were opposed to parliamentary democracy
        • Bruning's coalition excluded the SPD
        • After March 1930 the government had no majority
          • Ruled by presidential decree
      • Sept 1930 Election + Extremist Parties
        • Bruning cut expenditure + raised tax due to the depression
        • The SPD won Reichstag support for withdrawing Bruning's new budget
          • Bruning dissolved the Reichstag + called an election in Sept 1930
        • Extremist parties gained a lot of support in the elections
          • Communists gained 77 seats
          • Nazis got 107 seats compared to the previous 12
            • With 107 deputies in the house Nazis could shout and disrupt proceedings
        • Reichstag became pointless and unused
          • Power shifted to the President and his inner cirlce
      • The intensification of political violence
        • Nazis + Communists fought on the streets
        • Each side would break up each other's meetings
        • December 1931 Bruning banned political uniforms
          • SA continued to march wearing white shirts
        • April 1932 Hindenburg signed a decree outlawing the SA
        • SA membership continued to rise regardless
          • Estimated to have 400, 000 members

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