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The effects of the Great depression on Germany - Coggle Diagram
The effects of the Great depression on Germany
In 1929, Stresseman died, in the same time that the US economy plunged heavily.
A. Stresseman's death set the Weimar republic back a lot
B. The wall street crash affected the entire world, as a lot of countries, including Germany, were dependent on US loans
Wall street crash
During the 1920s, a lot of people int he USA were interested in stocks, and as many poeple bought them, the more their value increased over time
But, in October 1929, the American people lost confidence in stock, so everyone sold them very quickly and suddenly
Many American businesses and banks were destroyed because of this, causing a downturn in the German economy
The wall street crash turned into the Great Depression
The effects of the Great depression on Germany
After the Wall street crash, the US recalled all its loans from Germany.
This led to a financial crisis in Germany too, because Germany didn't have enough money to pay the loans
German businesses were closed, and many people lost their jobs
Because of this, the German government needed more money to play for more unemployment benefits.
A. The government had to raise taxes in order to make this money
Different people were affected differently by the Great Depression:
A. Young people: More than 50% of young people in Germany were unemployed. Even young people with university degrees couldn't find jobs
B. Factory workers: 4/10 factory workers were unemployed. Unemployment benefits were also reduced. These unemployed lower class worker did not have enough money to survive
C. Farmers: From 1927, the price of their good was falling, and many farmers went into debt. Many farmers supported the Nazis due to this.
D. Businesses: Businesses that managed to stay in business were doing poorly, because people had no money to spend on goods.
E. In conclusion, all these people contributed to the Nazi popularity, siince the Nazis promised better lives for everyone, which was appealing to people.
Unemployment statistics
In 1928, around 1,000,000 people in Germany were unemployed
In 1929, 2 million people in Germany were unemployed
In 1930, 3 million people in Germany were unemployed
In 1931, 4.5 million people in Germany were unemployed
In 1932, 6 million people in Germany were unemployed
In 1933, 6.5 million people in Germany were unemployed
The effects of the Great Depression on the Weimar republic
As a result to the Great depression, the SDP and the Centre party fell out of coalition
Heinrich Bruning (the Centre party leader) suggested that welfare benefits should be cut further :
A. Hermann Muller (The SDP leader) refused to accept this
Eventually, Muller had to resign and Bruning became chancellor
Bruning did not have a majority in the Reichstag, so he asked president Hindenburg to use Article 48
ARTICLE 48: An agreement part of the German constitution, which in a national emergency can be used by the president of Germany to make up or edit laws without the Reichstag's permission
Hindenburg allowed this, and Bruning went on to create many unpopular measures in Germany:
Rose taxes
Cut welfare and unemployment benefits
Bruning's measured slowly decreased his popularity and further increased the suffering of the German people
This caused another rise in populairty for the Nazis, as the Nazis provided supports as scapegoats, as they blamed Germany's problems on the Jews, communists and the Weimar government
Proof: 1930 election, Nazis had 107 seats
Communists have 77 seats