Exploring Germany's descent into the Great Depression, this overview examines the economic collapse post-1929, the surge in unemployment, and the political upheaval that led to the rise of the Nazi Party. The economic crisis, marked by hyperinflation and business failures, had profound effects on German society and politics, setting the stage for World War II.
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The Great Depression, which began in 1929, had devastating effects on Germany due to its already weakened economy from World War I
Dawes Plan and Young Plan
The Dawes Plan (1924) and the Young Plan (1929) helped stabilize the German economy but also created a reliance on foreign capital
The requirement to pay reparations imposed by the Treaty of Versailles added to the economic instability in Germany
The unemployment rate in Germany reached unprecedented levels, affecting nearly one-third of the workforce and leading to widespread poverty and despair
Inflation and deflation
The shift from inflation to deflation highlighted the severity of the economic contraction in Germany during the Great Depression
Business failures
The high number of business bankruptcies reflected the economic turmoil and its impact on the daily lives of Germans
The economic distress contributed to the erosion of faith in the Weimar Republic and paved the way for the rise of extremist political movements, such as the Nazi Party
The Wall Street Crash and Banking Crisis of 1931 further worsened the economic situation in Germany
Autarky and control of imports
The New Plan, implemented by the Nazi Party, aimed to reduce unemployment through self-sufficiency and controlling imports
Promotion of domestic production
The New Plan also focused on promoting domestic production to stimulate the German economy
The failure of the Weimar Republic to effectively address the economic crisis undermined public confidence in democratic governance
The Nazi Party, led by Adolf Hitler, exploited the economic distress to gain support and ultimately seize control of the German government
00
The ______, starting in ______, was a global economic crisis that hit ______ hard, a nation already weakened by World War I.
Great Depression
1929
Germany
01
The collapse of the U.S. stock market in ______ marked the cessation of American ______ to Germany, vital for its post-World War I recovery via the ______ and ______ plans.
October 1929
loans
Dawes
Young
02
Unemployment rate in Germany, 1928 vs. 1932
1928: Stable at 8.5%; 1932: Over 30%, indicating a severe economic downturn.
