P 66 - 73 IN OXFORD AQA HISTORY DEMOCRACY AND NAZISM: GERMANY 1918 - 1945
CHAPTER 9: THE IMPACT OF THE DEPRESSION OF 1929
THE ECONOMIC IMPACT:
● The Wall Street Crash in October 1929 when the stock exchange collapsed
meant American companies and investors lost their fortunes overnight
● German economic recovery during the golden years was largely due to
American loans - these stopped with the WSC
● The banks demanded immediate repayments withdrawing money from the
German economy
● The USA also had exported goods to Germany but this fell
● Germany’s export trade fell by 61% and industrial production fell by 58%
● After the collapse of the Austrian bank in May 1931, German banks plunged
into crisis
● Unemployment increased - ⅓ were by 1932
● January 1933 this increased to 8 million
● Several cuts were made in the civil service
● Farming was badly hit as prices collapsed alongside exporting of agricultural
produce
THE SOCIAL IMPACT:
● Weimar Republic had a well developed welfare and benefit system
● From 1930, means were stretched and their was moves to limit the amount
of benefits being paid
● Towns depending on single industries were impacted far worse such as
Brand Erbisdorff (glass making)
● Poverty was rising and diseases like tuberculosis and rickets were
heightening
● Suicide rates increased
● Shanty towns also began to appear due to people being evicted for no rent
paid
1
CHAPTER 9: THE IMPACT OF THE DEPRESSION OF 1929
THE ECONOMIC IMPACT:
● The Wall Street Crash in October 1929 when the stock exchange collapsed
meant American companies and investors lost their fortunes overnight
● German economic recovery during the golden years was largely due to
American loans - these stopped with the WSC
● The banks demanded immediate repayments withdrawing money from the
German economy
● The USA also had exported goods to Germany but this fell
● Germany’s export trade fell by 61% and industrial production fell by 58%
● After the collapse of the Austrian bank in May 1931, German banks plunged
into crisis
● Unemployment increased - ⅓ were by 1932
● January 1933 this increased to 8 million
● Several cuts were made in the civil service
● Farming was badly hit as prices collapsed alongside exporting of agricultural
produce
THE SOCIAL IMPACT:
● Weimar Republic had a well developed welfare and benefit system
● From 1930, means were stretched and their was moves to limit the amount
of benefits being paid
● Towns depending on single industries were impacted far worse such as
Brand Erbisdorff (glass making)
● Poverty was rising and diseases like tuberculosis and rickets were
heightening
● Suicide rates increased
● Shanty towns also began to appear due to people being evicted for no rent
paid
1
