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Topic 9- the impact of the Depression 1929: - Coggle Diagram
Topic 9- the impact of the Depression 1929:
A. The Economic impact
Oct 1929- the US share prices plummeted in the NY stock exchange causing the Wall Street crash- businesses and banks went bust quickly
the German economic recovery had been funded by US loans which had now dried up and US banks were demanding their money payed back in full with interest immediately
German economy had been slowing by 1928 but by 1932 German exports to US fell by 61% and industrial output fell by 58%
led to a major depression as the country was bankrupt again
as more businesses collapsed more people had to be laid off
1930- 4 million unemployed
1932- 6 million officially unemployed but this didn't count women (true unemployment was probably 8 million)
those that kept their jobs had hours cut so could not afford to spend their money, so more businesses went bust out of a lack of income
in 1931- several German based banks went bust, including a US bank as customers had done a run on the bank to withdraw their savings
in July banks were shut for several days
all sectors of society were hit badly, from industrial workers to middle classes- arguably farmers had it the hardest as the prices of their goods collapsed, so many had to hand their farm to the bank
B, The Social Impact
mass unemployment had a corrosive effect on German society and the welfare system collapsed due to high costs- from 1930 unemployed were paid a pittance for 6 months out of a national fund
when this ended the unemployed had to apply to their local council for a means tested benefits, which were less than they were receiving before- people had to sell all possessions before qualifying for welfare support- single women and the young received less than married men with a family
shanty towns were set up across the edges of larger cities in Germany, including Berlin (these were towns of squalor with rough shelter and no access to running water, gas or electricity)
poverty diets were endured by millions 'too little to live on, but too much to die on'
other issues such as domestic violence, alcoholism, fatalism/apathy, increased suicides, increased crimes such as begging, and increased prostitution were growing social issues
Impact on the young:
large young male unemployment led to the growth of gangs in cities, frightening people on the street- charges of theft increased significantly
the number of 14-25 year olds accused of crime did increase and a significant increase in youths charged with offences against the state and with assault and threatening behaviour
many young people joined paramilitaries such as the KPD's red front, or the Nazis SA often depending on either ideology of their father or as a rebellion against their father
this provided a uniform, status and food- however most young men did not get involved, females even more so
government set up voluntary and compulsory schemes- they paid pocket money and the sole purpose was to get young people off the streets
Impact on Women
many working women subjected to guilt and sexism for having a job- the DNVP campaigned against allowing women to work
in 1932 a law was passed which allowed married women to be sacked from the civil service and about 1000 were
women workers weathered the effects of the depression better than their male counterparts as the female proportion of the total workforce increased during the depression years
in spit of this, and campaigns by nationalists the cause for equal rights for women suffered a major setback in the Depression
C. The Political Impact
led to the collapse of the last truly democratic coalition (grand coalition led by muller of the SPD) in 1930, and allowed extremist parties to gain traction, and there was an increased amount of political violence
collapse of the grand coalition: governed from 1928-1930:
following depression, the SPD and DVP clashed over reduction in the dole payments - Muller resigned 1930 and Stresemann had died in 1929 which meant a sensible voice on the right was lost
Hindenburg attempted to hinder the reichstag by appointing the very right wing Bruning (Z party) as chancellor- burning influenced by 2 army generals, groener and schleicher
hindenburg, bruning, Schleicher and groener wanted to weaken the parliamentary democracy without abandoning constitution and favoured using article 48 to do this
Bruning government well short of a majority as SDP were not involved in coalition, this was essentially the end of parliamentary democracy in germany
Brunings Government,
cut govt spending which led to more job losses in the public sector, and also raised taxes in a major budget
had to use Article 48 to implement this which caused outrage over the definition of emergency. SPD Called a vote in the reichstag over this which bruning lost, an election was called for September 1939
consequences of Sept 1930 election:
Govt now reliant on article 48 to govern and now had totally no majority
Zentrums- 68 seats
DVP- 30 seats
humiliating defeat for Bruning, and he could only carry on in office through rule by decree
Opposition gained massively- mainly nazis:
SPD: 143 seats
Nazis: 107 seats (2nd in reichstag, from 2.6% to 18%)
KPD: 77 seats
DNVP: 41 seats
DDP: 20 seats
40% voted for parties openly calling for destruction of the republic, including the DNVP who returned far right under leader Hugenberg
the nazis disrupted the reichstag as much as possible- chanting, shouting and improving
reichstag met less and less, did not meet at all between Feb 1931 to Oct 1931 as power had passed to the president
political violence increased massively, and murder returned to the streets
1931 Bruning banned political uniforms, the SA just wore white shirts instead
April 1932- used Article 48 to ban the SA, but it didn't stop them having half a million members