Result of: Impact of the Depression, weaknesses of Weimar democracy, and strengths of the Nazi Party.
Global Economic Depression (1929):
Wall Street Crash (October 1929):
Triggered a global economic downturn.
Severely impacted Germany as American banks withdrew loans that were crucial for Germany’s economy.
Economic Impact on Germany:
Loans & Economic Recovery:
Loans under the Dawes Plan (1924) were foundational for Germany’s recovery post-hyperinflation.
Withdrawal of loans led to an economic collapse.
Consequences:
Massive unemployment rise:
Winter 1929-30: Unemployment rose from 1.4 million to over 2 million.
By January 1933: 6.1 million unemployed, one in three Germans.
Industrial production halved.
Political Impact:
Government Expenditure Increase:
Due to rising unemployment, spending on unemployment insurance increased.
Loss of faith in democracy, rise in extreme political parties.
Political Failures:
Chancellor Hermann Müller’s resignation (March 1930) due to inability to manage government spending.
Heinrich Bruning’s ineffective policies further eroded faith in democracy.
July 1930: Cuts in government expenditure, wages, and unemployment pay worsened the situation.
Use of Article 48 by President Hindenburg to pass laws without Reichstag approval.
Rise of Extremism:
Public Response:
Economic desperation led to increased support for extremist parties, both Left (Communists) and Right (Nazis).
By 1932, extremist parties controlled 319 out of 608 Reichstag seats.
Nazis were the main beneficiaries of the political and economic instability.
Summary:
The depression severely impacted Germany’s economy and political landscape, creating conditions that facilitated the rise of Adolf Hitler and the Nazi Party. Economic collapse and political mismanagement eroded public faith in democratic processes, paving the way for extremist solutions.