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The impact of the Depression of 1929 (Economic impact (January 1933: true…
The impact of the Depression of 1929
Economic impact
January 1933: true number unemployed approx. 8 million
Main industrial areas suffered depression: Ruhr/ Silesia/ main port cities e.g. Hamburg
1932: 1/3 German workers registered as unemployed
Civil service suffered severe cuts in workforce/ reductions in salaries
July 1931: government closed banks and stock exchange for 2 days
Farmers struggled during
‘Golden Age’ 1924-28 suffered THEN prices collapsed/ exports of agricultural produce declined/ sales of food fell/ banks demanded repayment of loans
Collapse of Austrian bank May 1931
Companies cut hours and wages
1929-32: Germany’s export trade decline 61%
1929-32: industrial production fell 58% of 1928 level
1929-32: Britain decline industrial production by 11%
Reduced demand for imported goods in US
US was largest overseas market for German manufactured goods
German economic recovery 1924-28 financed by US loans
German economy stagnating since 1928 as investment decreased
Wall Street Crash: German economy, society and political system affected
29th October 1929: value largest US companies fell by $10billion
24th October 1929: ‘Black Thursday’
Social impact
Increasing poverty
1930: moves to limit amount benefits less generous, means-tested
Women received less benefit than men
Weimar Republic well-developed system unemployment/ welfare benefits- overwhelmed budget
Young received less than adults
Towns = single industry = impact from dependence of diverse economy
Brand-Erbisdorff
‘Everywhere, I came to: increasing poverty, increasing bitterness, increasing doubt; a world of impoverishment and hunger and exploitation. I got to know Germany from below’
1933: no longer qualified for state unemployment benefits (relief provided by local authority)
½ population receiving welfare payments
April 1931: local glassworks closed
Small glass-making town near Dresden
Poverty
Diseases- poor nutrition, living conditions e.g. tuberculosis and rickets
Malnutrition among children
Suicide rate increased
Unemployed tenants unable pay rent evicted = tent cities and shanty towns on edges of large cities e.g. Berlin
“Too little to live on but too much to die from”
Impact on young people
No jobs = gangs of young men public spaces in German towns/cities = alarm older middle class
Youth involvement crime increasing/ young men drawn into extremist political organizations
Hamburg June 1933: unemployment rate males (14-25) = 39%/ females = 25.2%
High rate of unemployment
Juvenile crime
Young men charged with theft grew- increase youth charged with offences against state and assault/ threatening behaviour
Violent disorder during political demonstrations- rise offences reflected deteriorating political situation
14-25 year olds accused crime increased
Overall rate juvenile convictions did not increase
Political extremism
KPD- recruited working-class youths from ‘wild cliques’ join political demonstrations/ street battles with opponents
Paramilitary organizations nationalist right: recruit unemployed youths
E.g. Hitler Youth/ SA (Nazi Stormtroopers)
Offered: unemployed boys/ young men food, uniforms, shelter and excitement of street battles
Majority young unemployed males had little/ no contact with political extremes
Girls/ young women less involved
Young men in extremist political organizations
Schemes to help young unemployed
Bruning's government
Vocational training less than permanent employment
‘Priority was to get the young unemployed off the streets’-Minister of Labour
Voluntary labour schemes: young unemployed sent away from cities residential work camps 6 months
Strikes: higher wages in Oct 1930/ June 1932
Emergency labour schemes- unemployed youths undertake unskilled manual labour = wages below legal minimum
Day centres for young: participate in work-related activities/ socialise
Faith in market to revive economy- keep control over expenditure on unemployed benefits/ lessen damaging effects of unemployment on young
Impact on women
Depression + dismissal = debate married women continue employed when males out of work
Campaign right-wing parties against employment of ‘double-earners’
Female proportion total workforce increased during Depression years
May 1932: law passed married women civil servants dismissed
Limited to central government employees/ women dismissed proved economic circumstance secure- symbolic victory believed married women not employed outside home
Reich Postal Service dismissed 1000 married women (women’s rights setback)
The political impact
Opportunity for parties extreme left and extreme right gain support and undermine democratic system
Intensification of political violence
Collapse of Grand Coalition led by Hermann Muller (March 1930)
The collapse of the Grand Coalition
Grand Coalition: broadly based coalition government Weimar Period (5 political parties SPD from left and moderate right-wing DVP)
Crash: unemployment soared/ rising cost unemployment benefit strain on state finance
1929: falling tax revenues/ state budget in deficit
Right: DVP reduce unemployment benefit/ left: SPD protect level benefits/ raise taxes
March 1930: Muller resigned
Muller's successor
President Hindenburg: contempt for democracy (respected constitution)
Bruning: Chancellor authoritarian leanings
Army begun play role in politics- opposed parliamentary democracy- political crisis March 1930 impose authoritarian style government
Decision influenced by: General Groener (1928 Defence Minister)/ General Kurt von Schleicher (Groener’s political advisor)
Appointed by Hindenburg: Heinrich Bruning (leader Centre Party)
Bruning's coalition
After March 1930: no majority support Reichstag = rely ruling by presidential decree
Before Hitler appointed Chancellor (Jan 1933): establish Nazi dictatorship (democracy dead)
Excluded SPD (largest party Reichstag) = government did not have enough support Reichstag pass laws
1930: 98 laws passed by Reichstag (5 passed by decree)
1931: 34 laws passed by Reichstag (44 passed by decree)
1932: 5 laws passed by Reichstag (66 passed by decree)
The September 1930 Reichstag election and growth in support for extremist parties
Sep 1930: 107 deputies, Nazi disrupt proceedings chanting/ shouting/ interrupting
Reichstag: did not meet Feb and Oct 1931, sessions infrequent/ shorter
2/5 votes anti-democratic parties
Political power Weimar Germany- shifted from Reichstag to President/ circle advisers/ streets
Nazi: 1928- 810,000 votes Sep 1930- 6.5 million votes (representation Reichstag increased 12 seats to 107 seats)
Communist- over million votes = SPD 77 seats in Reichstag
Extremist: most seats in 1930 election
KPD: 77 deputies
SPD: 143 deputies
DDP (State Party): 20 deputies
Centre: 68 deputies
DVP: 30 deputies
DNVP: 41 deputies
NSDAP: 107 deputies
SPD won Reichstag support motion demand decree withdrawn
Bruning dissolved Reichstag- election Sep 1930
Article 48 = emergency not conduct of normal political business
No majority support = persuade Hindenburg issue presidential decree pass budget to law
Bruning’s response: cute expenditure + raise taxes = balance budget
The intensification of political violence
1924-29: violence subsided
Nazis: claimed 29 men killed in clashes with communists
Communists said 92 supporters killed
1919-23: riots/ political assassinations/ political uprisings frequent
1930-33: political violence increased
Nazis/ communists: Communists Red-Front Fighter’ League took political struggle onto streets
Break up political meetings opponents/ rival marches degenerated full-scale riots
Violence severe election times
Bruning: Dec 1931 decree banning wearing political uniforms- Nazi Stormtroopers (SA) march wearing white shirts
April 1932: Hindenburg persuaded sign decree outlawing SA/ failed curb SA activities
Membership grow/ political violence not under control- 1932: SA 400,000 members