The Fall of Weimar Germany: Lecture Notes

Key Event: The Great Depression

• The Great Depression was a major factor in the collapse of the Weimar Republic.
• October 1929: Massive stock market crash at the New York Stock Exchange.
  • Bankrupted much of the US economy.
  • One of the largest crashes in American history.
• Economists debate the exact causes of the Great Depression.

Impact on Germany

• Industrial Production: Fell by more than 40%.
• Business Bankruptcies: Around 50,000 businesses went bankrupt.
• Unemployment: By February 1932, 6 million Germans were unemployed.
  • Real wages fell by 1/3 by 1932.
  • Majority unemployed were under 25, contributing to the rise of the Nazis.

Political and Economic Consequences

• American Investments Withdrawn: American economists and businessmen pulled investments from Germany due to the Depression.
• U.S. Reparations: Demanded reparations to be paid back, affecting Germany's economy.
• End of the Golden Age: Marked the end of Germany's prosperous "Golden Age."
  • Gustav Stresemann, a key architect of the Golden Age, died in this period.

Political Instability

• 1928 Grand Coalition: Became unproductive leading to political instability.
  • SPD Chancellor Muller refused cuts to unemployment benefits.
  • President Hindenburg dissolved the Reichstag when budget approval failed.
• Rise of Extremist Parties:
  • The KPD (Communist Party) gained 77 seats.
  • The NSDAP (Nazi Party) gained 107 seats, becoming the second-largest party.

Decline of Democracy

• Proportional Representation System: Gave extremist parties more power.
• Presidential Decrees: Used increasingly due to Reichstag's ineffectiveness.
  • Hindenburg passed 109 emergency decrees vs. 22 bills by the Reichstag.
• End of Reparations:
  • 1932: Chancellor Brüning ended Germany's reparation payments.
  • Reparations had contributed to economic problems like hyperinflation.

Political Changes and Military Influence

• Influence of the Army:
  • General von Schleicher gained political influence, later becoming Chancellor.
• Chancellor Brüning's Downfall:
  • Though successful in some areas, Brüning was replaced by Franz von Papen in 1932 due to political instability.

Conclusion

• The Great Depression significantly contributed to the economic and political decline of the Weimar Republic.
• The period marked the rise of extremist parties and the beginning of the downfall of Weimar Germany.