Unemployment percentages were at an extreme high and this failure to regulate money throughout the economy drove down the economy. The overproduction which initially started this downwards spiral effect can be recognized as a very important cause to the start of The Great Depression in
‘The Wall Street Crash was the main reason Hitler got into power’. Do you agree? When the Wall Street stock market crashed in 1929 America’s economy was plunged into a depression. This had a big impact on Germany’s economy, as they relied on the loans from America, and was a big reason in the Nazis coming to power. However there were many other factors that contributed towards the Nazis rising to power, for example Propaganda, the weakness of the opposition and the role of Hitler.
In 1914 Germany had become the most powerful economic and military in Europe. The economy boomed and they were ready for war. "On the first day of the war, the German Reichsbank, like the other central banks of the belligerent powers, suspended redeemability of its notes in order to prevent a run on its gold reserves." (Sennholz) In an effort to keep taxes low the government preferred to borrow the needed amounts of money to finance the war. "A growing percentage of government debt thus found its way into the vaults of the central bank and an equivalent amount of printing press money into people's cash holdings."
When the stock market crashed, it immediately affected the economy in the matter of a few hours. At this time President Herbert Hoover was in office, and he was overwhelmed with the tragic situation. During his Presidency, he did his best to fix the economy. However, things did not begin to get better until Franklin D. Roosevelt took office in 1932. Roosevelt immediately began reconstruction on the American economy.
However it can be argued that the roots of Hitler’s appointment as Chancellor in January 1933 lie in the disaster of the Wall Street Crash of 1829 and the subsequent depression. This economic crash and the rise in unemployment had the important effect of further polarising German politics. The fact that Germany’s growth in the 1920’s had been funded by American capital which was now forced to withdraw hit Germany’s industry hard. Furthermore it was unemployment and the consequential insecurity that so undermined confidence in the present structures. By 1933 over 6 million German workers were unemployed.
Although Germany suffered greatly from a string of after-effects from the brutal Treaty of Versailles, their economic situation was only a small factor in Hitler’s gaining of support. The Great Depression had the most impact on Germany and it lead to mass unemployment and liquidation of businesses, which meant Germans were very desperate for money, and Hitler, being so extreme, seemed an ideal way to solve the problems. The economic problems also showed Hitler’s skill and knowledge, as no other chancellor before him had solved any problems economically, but he managed to. A major part of the reason that Germans turned to Hitler, is Hitler himself. Being incredibly charismatic, and having a great campaign, Hitler was very likeable at first.
Even more so, people became homeless and started begging on the streets. This sent the USA into a huge economic depression. Like a disease, the depression spread around different countries around the world and in Europe especially. The most impacted by this ‘Great Depression’ was Germany. They were affected very badly by it.
These days are considered the most tragic days in the American economy. These days began the “New Era” or a time of low unemployment when general prosperity masked vast disparities in income. John Maynard Keynes said” The extraordinary speculation on Wall Street in past months has driven up the rate of interest to an unprecedented level” Bierman Jr. 1). “There is a warrant for hoping that the deflation of the exaggerated balloon of American stock valves will be for the good of the world” (Bierman 1). It started as the Dow Jones stock dropped twenty three percent on Tuesday October 29th; this resulted in a loss of $8-9 billion
Even in the nation that prided itself on the migratory nature of its settlers and founding fathers, the people of the Great Depression were oppressed in their own land of birth. The Great Depression and the United States economy breakdown happened under the presidency of Herbert Hoover. When it came time for President Hoover to run for presidency again he wouldn’t run, so Franklin D. Roosevelt ran and won by a landslide. He changed many things in his term such as not letting banks reopen until they were stabilized and he then established the New Deal. The New Deal was a bunch of established programs which helped to curb the unemployment by hiring people for various projects.
For example, spending was lessened and investment was dropped. Businesses went through a downward spiral, and unemployment skyrocketed. When The Great Depression reached its climax more than 14 million Americans were unemployed, and many banks closed. The Great Depression brought about emotional anguish and physical suffering to many Americans. Yet, the United States Government was able to be an aid