Its was all going well as Germany was getting in a better state and they are paying their reparation until 1929. In October 1929 the Wall Street Crash was the beginning of a worldwide slide into the Great Depression. The effects were catastrophic, especially for Germany. American banks wanted their loans back as they needed the money themselves this caused the Germans businesses and banks to closedown and this caused unemployment. The number of people unemployed rose by five million from the start of the great depression1929 to when Hitler became chancellor in 1933.
Even though Hindenburg was in Hitler’s way of gaining the Chancellorship, there were many other factors that lead to Hitler becoming Chancellor in January 1933 and not just because he was leader of the most popular Party in Germany. For example, the Weimar Republic was suffering from the political polarisation between nationalist and communist’s parties and the economic crisis caused by the Great Depression. These two issues put pressure on the governing coalition and it was beginning to break up. Furthermore political intrigue and the self interest of political parties, along with the inherent flaws of the Weimar constitution and the weakness of government by coalition, all played into Hitler’s hands. These factors caused the loss of public support for the grand coalition of the Weimar Republic and the German people subsequently looked for a new style of leadership.
It is accurate to suggest that the Treaty of Versailles was mainly responsible for the political and economic instability in Germany in the years 1919-23. The treaty led to political and economic problems because of the terms included in it. The German government was seen by many to surrender to the dictation of Britain, France and America. Forcing the country to submit a lot of land, losing a huge percentage of their population and having their military force. All of these terms are what led Germany to economic and political instability in the years 1919-23.
Known also as Black Tuesday, October 29th left stockholders shattered with recorded losses reaching $40 billion dollars (Kelly, n.d.). Many banks and financial institutions began collapsing which led to irretrievable, uninsured deposits and savings. Fearing further loss, people began spending less which led to a decrease in production and an increase in unemployment. As companies began to fail, the government devised the Smoot-Hawley Tariff in order to protect American businesses. The Tariff placed high taxes on imports leading to a decline in international trade.
This was due to events like the devastating 1923 hyperinflation, and of course the Treaty of Versailles, which had tainted Weimar’s reputation from its inception. The Reichstag was in a constant state of flux as the parties struggled to create and maintain coalition governments, and this added to the public’s negative perception of a democratic republic. The economic slump from 1928-32 was undoubtedly responsible for the NSDAP’s rise in support, as it was the cause of social and political problems within Germany. Even prior to the Wall Street Crash in October 1929 the economy was in trouble – economic growth was uneven throughout the 1920s. Trade was in debt as imports exceeded exports; this was because Germany was
Due to many Germans thinking it was the communists, Hitler would’ve gained even more followers for the Nazi Party and an even bigger amount of power given by Hindenburg. A week after the Reichstag fire, the general election took place. Hitler called for this for the 5 March 1933 hoping it would give him a clear majority in the Reichstag. If he could control parliament then he could create laws to tighten his grip on the nation. However, at the election, Nazis didn't win majority of the votes, therefore a coalition government was formed with the National Party.
What Evans means by this is that the desperation of the people led them to polarising their votes and seeing radical leaders like Hitler as a solution to the mess that Germany had become. Hitler took advantage of this, and from there was able to play a huge role in the collapse of the Weimar Republic. The economic strain that Germany was placed under was also a major impact of the Depression on the collapse of the Republic. Firstly, the Depression had the obvious impact of the debt rising and the banking crises however, there were a number other impacts. Germany relied heavily on international trade for resources; almost one third of their resources came from overseas.
FOLLOW THE LEADER ADOLF HITLER Germany in 1930 In 1930 the Germanic social and economic situation was heading towards chaos. After the Wall Street Crash of 1929, the United States were forced to call back the money they had loaned Germany in 1924 and 1929, leaving the Weimar Republic with no resources to invest in the economy. The Germanic growth over the last years had been an illusion, as a great deal of the capital invested had been coming from overseas loans. As the money borrowed was paid back, Germany was once again facing bankruptcy. Unemployment, which was not a major issue in 1929, dramatically soared by September 1930 1.
The arrival of Röhm was an important development as he had access to the army political fund and was able to transfer some of the money into the GWP. The German Worker's Party used some of this money to advertise their meetings. Adolf Hitler was often the main speaker and it was during this period that he developed the techniques that made him into such a persuasive orator. Hitler's reputation as an orator grew and it soon became clear that he was the main reason why people were joining the party. This gave Hitler tremendous power within the organization as they knew they could not afford to lose him.
The Great Depression was mainly in America but it also had effects on the German economy too. Between the years 1929 and 1932 the amount of world trade fell by around 70 per cent. The unemployment levels rose and wage cuts were made and many people were made homeless due to this, they were unable to pay their rent or their mortgages so many were reduced to instant poverty. Welfare was a problem with the depression, the right wing didn’t like the idea of welfare but some of the left wing parties did. This meant they were arguing over welfare, the fall of Muller government and what they would do with the benefit system.