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Section 3: The Impact of the Depression - Coggle Diagram
Section 3: The Impact of the Depression
CHAPTER 9
The impact of the depression:
WALL STREET CRASH, OCTOBER 1929
New York stock exchange faces its worst fall in prices known as 'black Thursday'
On one day alone, the value of America's biggest companies fell by $10B alone
In response all loans were withdrawn and protectionism adopted in 1930.
America demanded an immediate repayment of loans from germany
The USA had been the largest marked for German manufactured goods
Between 1929 and 1932 German export trade reduced by 61%
Peter Temin doesn't think the Wall Street Crash caused the Depression and says that investment was already declining
Paul Romer agrees with this too
implications of Depression
Unemployment:
1928- 600,000
1929- 1.6M
1930- 3M
1933- 6M
although these numbers in themselves were inaccurate as many women and redundant workers didn't register unemployed
real figures in Jan 1933 were believe to be closer to 8M
Farmers were hit really badly- they were even struggling in the Golden age , many had to give up land etc
by 1932, 18000 farmers went bankrupt
Germany's industrial production was definitely hit the worst at a 58% fall with Britain's being j 11%
Bank closures:
in 1931, 5 major banks closed down
When the Austrian bank fell in May 1931 the whole banking system had to close for 2 days
Social Impact
POVERTY was the most notable social impact:
from 1930, benefits were stringently given out with means tests being tightened
some areas were hit far worse than others, particularly towns that had specialised in one industry
EG
Small town of Brand-Erbisdorff near Dresden - specialised in glass making
in 1931 the local glasswork closed and almost half the population lost their ob
had to rely on relief from local authority
a local visitor said they "got to know Germany from the below"
As more Shanty towns popped up on the sides of big cities diseases like TB and rickets became particularly prevalent
Journalist Knickerbocker on 'poverty diets'
he says there was "too little to live on and too much to die from"
Impact on the young people:
unemployment hit the young particularly hard
Hamburg case study (June 1933):
males 14-25: 39% unemployed
females 14-25: 25%
exacerbated juvenile crime and number of youths charged with offences significantly increased during Depression
This precipitated the involvement of young men in extremist youth groups like kpd and Hitler Youth
these groups preyed on young bored males and drew them in by providing shelter, food and uniforms
memberships however were very few and hardly any males at this point had contact with political organisations
labour schemes:
emergency labour scheme- which paid lower than minimum wage
voluntary labour scheme- 6 months of rural work
minister of labour said that priority was getting the young 'off the streets'
Impact of women
Depression ignited the debate about whether married women should be allowed to work
coined as double-earners
right wing had some success when a law in 1932 was passed that allowed married women civil servants to be dismissed if they were financially stable
after this around 1000 women were dismissed from Reich Postal Service
The Political impact
Consequences of the Depression
collapse of Muller's Grand Coalition
an opportunity for extremist parties to rally support
intensification of political violence
The collapse of the Grand Coalition
Muller's coalition was the most broadly based , had 5 parties from SPD to DVP
The Depression and how to deal with it is what spill the coalition
tax revenue was so low and there was a budget deficit
The right wanted to cut benefits and keep taxes low and the left wanted the opposite
Muller could not get a Finance Bill through the Reichstag and pleaded Hindenburg to use article 48 , H refused and Muller was forced to resign - REPLACED BY BRUNNING
Brunning's appointment :
was largely influenced by Schleicher and and Groener which was an indication that the army was beginning to play a key role in politics
both men saw the tensions in 1930 as an opportunity to impose a more authoritarian style of government
Historians on Brunning
Feuchtwanger
"Bruning was the last chancellor to govern with any kind of constituional legitimacy"
Mommsen
- blames Bruning for deliberately worsening the economic crisis and thus creating that only Hitler understood to exploit
THE APPEAL OF NAZI EXTREMISM
1928+1930 ELECTIONS
May 1928:
This election is where the Nazis saw the biggest increase from 2.6% to 18.3%
September 1930
KPD vote rose from 10.6% to 13.1% whilst moderate parties fell massively
REASONS BEHIND 1930 ELECTIONS
Bruning was trying to deal with the Depression by cutting expenditure and raising taxes which was in itself angering people
Since he didn't have majority he used article 48 to pass his financial bill
The SPD then won reichstag support demanding it be withdrawn
Bruning dissolves Reichstag and calls for elections
in 1930 elections Nazi got 6.5M votes making them the second largest party after the SPD (107 seats)
The Reichstag became unmanageable and hardly met (no meetings between Feb-Oct 1931)
INTENSIFICATION OF POLITICAL VIOLENCE:
1930-33 SAW the dramatic increase in political violence
Nazis would fight the Red-Front Fighter's league took violence onto the streets
By the end of 1931, violence was so bad Bruning decided to act and in December banned wearing of SA uniforms
In April 1932, Hindenburg signs a decree outlawing the SA
didn't work by the end of 1932 there were 400,000 SA members
Brunning has to resign because Hindenburg didn't approve of his policy for giving Junker land to unemployed not so much because of the no-confidence vote.
CHAPTER 10
The Nazis did a far better job in the 'Depression' years their biggest gains came from the broader MC and farmers by promising higher prices and import protection
Nazis were strongest in the Protestant North, East and Centre of Germany.
1932 Elections:
July:
they become the largest single party in the Reichstag (37.4%) of the vote
November:
Nazi vote falls to 33.1%
PRESIDENTIAL ELECTIONS
He was reluctant to run again was persuaded to do so
His main left opponent was Thallmann (KPD)
There was another right candidate: Duesterberg.
First balllot;
Hindenburg fell just short of 50% (the amount of the vote needed to win)
2nd Ballot
Duesterberg drops out
Hindenburg wins 53% of the vote (WON)
Hitler got 37%
Working class was most important- made up largest part of electorate
The communis were strongest in poor areas like Berlin, especially among unemployed
Nazi did attract some working class, in 1930 elections 27% of labourers were working class
conclusion: what gave nazis the edge was that they were an a widespread party and rallied support across all classes
THE APPEAL OF NAZISM
The Nazi Message/Ideology
25 Point programme was a loose collection of Nazi ideals but Hitler didn't agree with lots of these points . Mein Kampf was a refined version of this but wasn't widely read until after 1933
The power of the will
Hitler presented himself and the party to be a force for change in germany
believed truth was valueless if we don't turn "realisation into action"
Hitler personified the Nazi values of strength, power and determination
A Racial Community
Volksgemeinschaft was a key element in Nazi ideology
Only Aryans could be accepted into the state, others were just seen as 'subjects'
Among just Aryans would exist no class system
it would be based on 'blood and soil'
belief that German race had become 'polluted with Alien blood'
A National Socialism
Adopted NSDAP name to gain workers support
Some socialist aims highlighted in the 25 points were nationalising large monopolies, confiscating war profit etc- but never actually happened
Hitler sought support of wealthy industrialists after 1929 so used the term socialist loosely
The Fuhrerprinzip
Hitler set out to destroy the public since it was a democracy
Argued in a 1922 speech "democracy is fundamentally not Jewish, its German"
-democracy is always associated with betrayal "november criminals" and dolchstoss
belief party should run on dictatorship with Hitler having complete control
Aggressive nationalism:
As a nationalist he had 3 main aims
1) reverse the humiliation of the Versailles treaty which he described as an
instrument of unlimited blackmail and shameful humiliation
2) to establish a greater German Reich
3)Lebensraum
The only way to achieve these was through a war
Anti-semitism
in propaganda Jewish people were depicted to be cunning, sly and motivated only by selfishness
they were described as "a parasite in the body of other nations"
They were blamed for all ills - communism, democracy etc
THE IMPORTANCE OF Hitler to NAZI SUCCESS
Many historians particularly Kershaw, believe it was Hitler's image and persona that secured his power
he had unparalleled oratorical skills
many described a hypnotic effect
great charisma knew how to play on people's emotion and fears
ROLE OF ANTI-SEMITISM IN ELECTORAL SUCCESS
jews used as scapegoats in propaganda
responsible for politcal problems
althought most germans were still unwilling to go with openly anti-semitic propaganda
If people were voting for Nazis it was for other initiatives such as 'work and bread'
- propaganda was adapted according to regional circumstances
EG: In Jan 1932, Hitler made a speech to 650 businessmen in Dusseldorf which was 2.5 hours long and he didn't mention the Jews once
At the same time there were meetings where Jews were the only thing spoken about
SA chanted
"Juda Verrecke"
IMPORTANT: Most propaganda was not steered towards anti-semitism during this time
Jan 1932- 16 mass meetings steered towards unemployment
The role of propaganda in Nazi electoral success
Hitler was seen as new and modern his campaign was done via flight (Hitler uber Deutschland)
Goebbels becomes minister in 1928
We know his effect on businessmen was effective as he secured large donations from Hugenberg and Thyssen
For the most part they focussed on a simple message-
Weimar democracy was responsible for economic downturn
THE APPEAL OF COMMUNISM
Like the Nazis, KPD used fighting talk and militarism as part of its appeal
Between 1928 and July 1932 they gained 2M votes
They were successful in areas where trade unions were strong
their slogans included
"Peace, unity and freedom"
Down with the Warmongers
Together we conquer them
The The RED FRONT and SA often fought
IDEOLOGY
Communists saw the depression as proof for Capitalism being over
HATED SPD - labelled them as 'social-fascists'
STRENGTH:
most notably their strength was in their numbers
also in propaganda : 'bread and freedom'
many felt threatened by a commy revolution
WEAKNESSES:
fears of communist revolution sent most of the middle class to the NAZIS
50% of new members left in a few months within 1932
most members were unemployed - always short of money
Conclusion; nazis had upper hand being a super-interest party and had really wealthy donors
CHAPTER 11 - Appointment of Hitler as chancellor
SUMMARY OF HITLER'S APPOINTMENT
Hitler becomes chancellor on 30th January 1933
He had been invited to join a coalition with Papen and the DNVP
ALLEN BULLOCK a historian says Hitler came to power as a "part of a shoddy political deal with the Old Gang
1932 Elections
JULY:
Nazis and Communists together won half the seats
Nazis secured 37% of the vote (largest party)
NOV:
Nazis still largest party but numbers declined at 33.1%
Events leading to Hitler's appointment as Chancellor
1932
April: Hindenburg is re-elected as president
Brunning bans SA
May: Bruning forced to resign as Chancellor
June: Papen lifts ban on SA
July: Papen declares a state of emergency in Prussia and dismissed the SPD led gov
Reichstag election - Nazis become largest party
September: no confidence vote in Papen
November- another election - Nazis still largest party
December- Papen forced to resign and replaced by Schleicher
1933
January - Hitler and Papen agree to work in a coalition
POLITICAL AND ECONOMIC CRISIS
Falling of Bruning's cabinet, May 1932
His coalition was in Power from March 1930-May 1932
Heavily supported by Schleicher who wanted a more authoritarian style of government
Demonstrated by constant decree ruling
Brunning's priority was to reduce expenditure - dubbed
"hunger chancellor"
reduced no of civil servants
cut wages
Feb 1932- unemployment reaches 6M
April SA is banned and then Schleicher withdraws support
Hindenburg is forced to turn to Hindenburg to use 148 but he refuses as he doesn't approve of his policy (junker land)
FORCED TO RESIGN
PAPEN's Gov May-December 1932
coalition was established on a non-party basis, he wanted to create a
government of national concentration
had very little support. French ambassador said his election was met with incredulity
he looked down on the Nazis but sympathised with some of their ideas and thats why he lifted the ban on SA in June- thought they would be useful allies