Impact of Wall Street Crash
Economic
overdependence on American loans-US banks recalled their loans
weakened industrial + welfare infrastructure
increased unemployment
Germany had borrowed 5x amount necessary for reparations
Huge rise in unemployment
132,000 1929
3 million 1930
6 million registered
8.5 million more accurate for non-registered
4/10 people out of work
small firm, businesses + farms went bankrupt- 50,000
Farmers already had high interest rates + falling agricultural prices before 1929-wages + incomes fell sharply
by 1932 18,000 farmers bankrupt
outbreaks of disease more common due to poverty
infant mortality rate increased
value of German exports fell by 55% from £630 million (1929) to £280 million(1931) and then to £250 million (1933)
domestic budget deficit of 1700 million marks
lack of financial reserves to provide welfare support for increasing numbers of unemployed
German industrialists calling for reduction in tax burden + less social spending
demand for steel, machine good, shipping + chemicals fell rapidly
people rushed to change money into foreign currency to avoid hyperinflation
collapse of Austria's largest bank in May 1931 + Germany's largest bank in July 1931
Political
weaknesses of Weimar became clear
political parties disagreed on what to do
Nazi + communist share of vote increasing