When the stock market collapsed on Wall Street in October, 1929, it sent financial markets worldwide into a meltdown this was tragic for the German economy. The German economy was vulnerable because it relied on loans from America and exports to fuel it. German workers were laid off. Along with this, banks failed. Inflation soon followed making it hard for families to purchase expensive necessities with devalued money.
This is due to de-industrialisation as the regions mining industries have now long gone and they now depend highly on tourism. The flood, in short term affected Boscastle considerably, Shops that survived the impact and bombardment of the water were too flooded to open and had to be repaired. This on average for buildings and houses cost in between £15,000 - £30,000 and the total cost of the flood was £50 million! This caused a big dip in the local economy had to pay out for all the damages without getting much money put in! And also due to the shops closing, the people ended up loosing there jobs.
These workers were also crippled but enlightened by industrialisation meaning that again opposition increased. Because the government was putting as much money as possible into industrialising, wages stayed very low, causing many workers to live in horrific cramped conditions, which were prone to widespread disease due to the overcrowding. Taxes increased, worsening the workers financial problems and after being told that their hardship was to fund industrialisation for an eventual better Russia for everyone, in 1902 there was an industrial slump, which made it seem to the workers that their efforts were in vain. This increased opposition because the workers were looking for someone to
This caused disappointment as it meant that no foreign corn could be imported until the price of British corn reached 80s a quarter. This had the effect of pushing the price of bread up, which badly affected the working classes, as they could no longer afford their staple diet. This caused disappointment as the government (the landed interest) seemed to be looking after themselves by ensuring high profits. Their handling of taxation reveals the same. For example, income tax was abolished in 1816.
WHY DID THE WALL STREET CRASH HAPPEN IN 1929? The Wall Street crash which happened on 29 October 1929 was one of the most depressing events in the history of America. This happened because people lost their wages b 60%, 14 million people were unemployed by 1933, banks went bust and also US trade slipped from $10 billion to $3 billion. The Wall Street crash happened due to some reasons: one reason was, the Americans were buying consumer goods on credit, especially cars and houses they did this because, they didn’t have enough money, and therefore if they get the money they will be able to pay. Another reason was that speculation was rife, because people believed the stock market was easy so 20 million Americans invested but only 1.5 million people had serious knowledge of the market.
The Wall Street Crash in 1929 was important in getting the Nazi’s into power because the crisis was catastrophic in Germany as it caused unemployment to increase to 3 million. Nearly everyone was affected by the unemployment. Since most of the unemployed were men, they could see no way to provide for their families. As the German democratic government was beginning to unravel as they were struggling to control the economy. This made people give up hope on the democracy as it was not working and caused people to resort to extremist groups which made the Nazis seem like they were the solution to the problem.
Hyperinflation happened because Germany owed so much money due to reparations of the war, it simply thought that it would just be able to print more money, but when a government prints money that it does not have the value of money decreases and prices go up. In Germany this was a huge problem as inflation was rising at astonishing rates and the effects were disastrous. Many people that had worked hard are there lives were forced to become beggars as the pensions and savings lost all value. The people that had jobs were still in disastrous positions, as their wages could not keep up with the increasing rate of inflation. People were not blaming the Kaisers war government but instead they were blaming the Weimar government, as they were the ones that had agreed to pay the war reparations in the treaty of Versailles.
As unemployment reached an all time high in 1933, this decade, was squished between the roaring twenties and World War II, and was left little to be highlighted other than the dismal consequences of the Great Depression. An all-time low in American confidence, the years between 1929 and 1940 tested the strength, courage, humility, and perseverance of those forced to suffer a quickly dropping economy. No longer did hard work transform into success or even hope. Middle class working families now joined the ranks of the poorer classes and farmers hit by the Dust Bowl in the 1920's. The enormous unemployment disrupted family structure as it forced the male provider shamefully into bread lines.
The collapse of stock market happened because it had a weak foundation. In fact, it was dependent on borrowed money; banks would lend money to the population to buy shares in the market without making sure the borrowers were able to pay back. Moreover, facing the crisis over nine thousand banks were obliged to close, for they invested their client's savings in the stock market. Going through rough time financially, Americans are drastically forced to reduce their spending which lowered the amount of production; therefore, employers slashed the numbers of employees that caused the unemployment rate to rose from 4.2 in 1928 to 8.7 in 1930 and to 23.6 in 1932. In the middle of the crisis, several social classes experienced a harsh time.
So the social groups were formed by what class they were in. Resulting in different political parties being formed. From WW1 Nicholas lost many supporters. Because he left the homefront there was very poor organization for the women and children back home. The prices had risen so much that transport was limited, so not much food could reach Petrograd before it was rotting.