1929 –The CRASH · 2019-08-10 · 1929 –The CRASH Aim: ... Impact of the Great Depression...

1929– TheCRASH

Aim:HowdidtheWallStreetCrashleadtothegrowthoftheNaziParty?

WhatissuesdidtheWeimarRepublicfacein1928?

Internationalrelations

Extremism

Loans

Economy

Locarno,Kellogg-Briand,LeagueofNations

RemainedonthefringeofsocietyasGoldenAgeincreasedsupportforWR.

MoneybeinginputfromDawesPlan,butsignsofproblemsinfarmingandindustry.

NegotiatedrepaymenttermswithUSA– delayedreparations(YoungPlan)

“Wearetodayinthemiddleofthegreatesteconomiccatastrophe…ofthemodern

world…

TheviewheldinMoscowisthatthis…isthelastcrisisofcapitalismandthatourexisting

orderwillnotsurvive.

Thereisapossibilitythatwhenthiscrisisislookedbackon…itwillbeseentomarkone

themajorturningpoints.”JohnMaynardKeynes,1931

Whatistheviewofthisinterpretation?

Stickthesediagramsintoyourbooks

ImpactoftheGreatDepression:• Forthislesson,asitissoimportantasaturningpoint,yournotesneedtobeorganisedintotothefollowingcategories:

• ECONOMY/BANKS• WORKERS• GOVERNMENT• BUSINESSES• RISEOFEXTREMEPARTIES(Left&Right)

ImpactoftheGreatDepression

EconomyWorkersGovernmentBusinessExtremismEg:

Oramindmapifyouprefer

• Americarecalledit’sloans– Germanbusinessescouldnotaffordtorepayandmanycloseddown.

• Germanbusinessescouldnotselltheirgoodscausinglowerproductionandfinancialhardship.

• Factoriescloseddownandmillionslosttheirjobs–unemploymentrosefrom8.5%in1929toalmost30%in1932.

• Wellover6millionGermanswerehomeless,shantytownsgrewasdidviolenceandtheft,thepeopleweredesperate

• Triedhard,butunsuccessfully,tofighttheDepression.

• Theonlywaytohelptheunemployedandpoorwastoprintmoremoney– REMEMBERHYPERINFLATION!!!!

• Unabletoprintmoney,theBruning raisedtaxes.Althoughthisgaveitmoneytohelpthepoor,itwasabigproblemforbusinessesandtheeconomy.

• Reducedwagesofgovernmentworkers.Thisalsohelpedthepoorbutmeantevenmorewereunabletosurvive.

• ChancellorBruning wasforcedtoreduceunemploymentbenefit,leadingtoEVENMOREHARDSHIP.

• Bruning wasforcedtoresigninMay1932

Stresemannhaddiedonlyamonthbeforethecrashleavingnostrongleadershipinthecrisisleadingtoacoalitionofchaos.

TheGovernmentwereblamedforthehardships.

MoreandmoreGermanslistenedtotheextremistpartiesthatcriticisedtheGovernmentandpromisedtosolvethecrisis.

Bruning askedPresidentHindenburgtoinvokeARTICLE48andreducetheneedfortheReichstagtoagreeonnewlaws,going

from5 in1930to 44in1931and 66in1932.

Communistsblamedcapitalism,NazisblamedtheJews,GovernmentandCommunists

Peoplerushedtothebankstowithdrawtheirmoneyleadingtobanksgoingbustaddingtothecrisisevenfurther

GermanBusinessmen

• ManybusinesseswereforcedtocloseastheyreliedheavilyonUSloans.

• Governmentincreasedtaxestopayforhelpingunemployed.

GermanWorkers

• Manyworkers&farmerslosttheirjobs.

• By1932,6millionunemployedincluding40%offactoryworkers.

• Unemploymentbenefitcut&manyfamiliessufferedterriblepoverty.

•Wageswentdownforthefewjobstherewerebyupto70%

GermanYoungPeople

• Byendof1932,halfofGermansbetween16-30wereunemployed!

• Thisincludedover60%ofuniversitygraduates.

WeimarRepublic

• MostGermansblamedtheWeimarGovernmentforallowingGermaneconomytobecometoodependentonUSloans.

• Criticised forfailuretodealwithworsteffectsofthedepression,especiallyhighunemployment.

EffectsoftheGreatDepression

TheGreatDepression

Why was Hitler so happy in 1930?

GREAT DEPRESSION DEATH OF STRESSEMAN

Lookbackatyour25PointProgramme.

WhatsectionsmightappealtoGermansduringthe

Depression?

KPD NSDAPModerate/Centrepartiesfailedtodealwiththecrisis

GeneralElections1928-32

May1928

Sept1930

July1932

SPD 152 143 133

NSDAP 12 107 230

KPD 54 77 89

WorkersangryandsufferinghardshipswereattractedtotheCommunistParty,withamillionextravotesby1932astheyfelttheyweretheonlypartywho’ddefendjobsandwagesagainstlandownersandemployers

Mainreasons:- Risingunemployment- Fallingwages

AsmostGermans(middle/Upperclasses)wereafraid ofCommunismandhadturnedtheirbackoncentralparties,theonlyrealalternativewastheNazis

Mainreasons:- Fearofsufferingunderacommunistgovernment- WorriedaboutlosingtheirlandandcompaniesfromaCommunistgovernment- Appealofthe25pointprogrammegrew