9 - The Impact of the Depression 1929
- Created by: Becca Newman
- Created on: 28-01-20 12:37
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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
- Workers were made redundant
- 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
- Not all unemployed had registered
- 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
- Depression - Prices collapsed, exports declined + sales of food fell
- 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
- The Weimar Republic had a good unemployment + welfare system
- 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
- Assault + threatening behaviour as well
- Overall rate of crime didn't increase
- Political Extremism
- Increase of young men in extremist political organisations
- KPD recruited some working class youths
- Political demonstrations + street battles
- KPD recruited some working class youths
- 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
- Food, uniform, shelter + the excitement of fighting street battles
- Increase of young men in extremist political organisations
- 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
- Schemes were unpopular
- Unskilled manual labour for below minimum wage
- Voluntary labour schemes
- Residential work camps for 6 months
- Offered few prospects but fulfilled the government dream of getting the youths off the street
- Residential work camps for 6 months
- Day centres were established for young people
- Crime
- 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
- Poverty
- 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
- March 1930 - Muller resigned
- The right wanted to reduce benefits, left wanted to protect the benefits levels
- 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
- Collapse of the Grand Coalition
- Economic Impact
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