As Germany was held responsible for the war the allies could claim reparations for the damage caused by Germany had a reparations bill of 6.6 million pounds this ensured that the German economy was going to struggle.
Companies throughout Germany - though mostly in the industrial areas such as the Ruhr these companies went bankrupt and workers were laid off in their millions. Unemployment affected nearly every German family just 6 years after the last major economic disaster hyperinflation had hit Weimar.There was the great depression of the Weimar Republic. This depression led to massive unemployment that affected 23 million people by 1932. There was a great amount of unemployment in Germany and the percentage kept on rising. Unemployment rose from 1.3 million in October 1929 to 5.1 million in February 1932. 33% percent of the workforce were now unemployed. The great depression reignited people's anger for the Treaty of Versailles. People now began listening to Hitler- he seemed to have all the answers. Before the Great Depression, people were happy to go along with Stresemann's policy of fulfillment. Support for Hitler grew as unemployment grew.
A table showing the
amount of unemployment
through the years.
The unemployed completely filled the streets. They stood or lay about in the streets as if they had taken root there'. People were desperate for work, and would have done almost anything to get it. A German worker describes in 1985 why he joined the Nazis in the 1930s. The unemployed were given food and shelter in Nazi hostels and then became part of the SA.
It was a crisis in Germany. People had lost faith in the Weimar constitution and many people wanted to see a change. It was realised that in such a crisis, the Weimar government needed one strong man to deal with Germany's problems. Hitler's rise to power was based upon the long-term factors - resentment in the German people, the weakness of the Weimar system - which he exploited through propaganda, the terror of his stormtroopers, and the brilliance of his -speeches. During the 'roaring twenties' Germans ignored this vicious little man with his programme of hatred. But when the Great Depression ruined their lives, with inflation running high, Hitler thought the time was ripe for his party to seize control in Germany, they voted for him in increasing numbers. In 1928, the Nazis had 12 seats in the Reichstag. In 1930 this rose to 107 and in 1932 to almost 200. The Nazi party was now the biggest party. Without the Great Depression, it is unlikely that Hitler would have risen into power.
On Tuesday 29th October 1929, the American Stock Market, Wall Street, crashed. As a result, 659 banks crashed in America in 1929, 1352 in 1930 and 2294 in 1931. America recalled loans from Germany that had been negotiated under the Dawes Plan (1924). Germany now had to pay back these loans and had to pay reparations. For these reasons, the worldwide economic depression that followed the crash affected Germany particularly badly.
The stability of Germany was to change with the world wide impact of the October 1929, Wall Street Crash in America.
The Weimar Republic was devastated by the Wall Street Crash of October 1929 and the Great Depression that followed. This provided the spark that allowed the Nazis to gain support. All of a sudden the support of the American's and the aid pans were withdrawn, Germany was again isolated and the economy was in crisis. The rise in Unemployment and a renewed fear of a Communist uprising gave Hitler's messages a new importance, the German people were again interested in the views of Adolf Hitler’s extremist party. After the Wall Street Crash, America gave Germany 90 days to start to re-pay the money loaned to her.
When the Wall Street crash occurred in America it hit them just as much as it hit Germany the Wall Street crash caused the US loans to be withdrawn business were closed, taxes increased, not a large amount of money led to a rise in unemployment a huge rise in poverty with people homeless.
A flow diagram showing the impacts of the Wall Street Crash
on Germany.
This British newspaper shows that that the Wall Street Crash was unimaginable it was known as the black Thursday, how did it happen what went wrong says London Herald newspaper.
A British newspaper tells the events of the Wall Street
Crash.
