In 1924 the crisis was brought to an end by the Dawes Plan, which restored the value of the currency. One result of this was go make the German economy dependent on loans from America. When the American Stock Exchange (Wall Street) crashed in 1929, this left the struggling German economy in chaos. Industries failed and unemployment rose to 6 million. Social unrest followed, as people starved.
‘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.
Later on President Hoover passed the Hawley-Smoot Tariff of 1930 which raised duty on non-free goods to nearly 60%. This angered foreigners, reversing a promising worldwide trend toward reasonable tariffs and widening the trade gaps. It was designed to assist the farmers, but instead plunged both America and other nations deeper into the depression that already began with the Stock Market Crash of 1929. It increased international financial chaos and forced the United States into economic
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.
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.
Therefore, people who had lost savings due to hyperinflation were not compensated. They were angry and blamed the government for their losses. Source F is an extract from an article written by a historian that suggests that people’s lives were improving because the German economy was doing really well and they had made a major recovery. Another reason the economy was saved was because Stresemann called off action against the French occupation of the Ruhr. Stresemann called of the policy of passive resistance in order to try to persuade the French to leave the Ruhr.
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.
To what extent was the Great Depression the main reason for Hitler’s rise to power? One of the main reasons for Hitler’s rise to power was the effects of the Great Depression of 1929. After the Wall Street crash, the U.S. called in its loans to Germany thus increasing both poverty and unemployment levels. The Weimar government did not understand how to reverse the situation so the general public became angry and lost confidence in the relatively new democratic system. During a depression, political trends become extremist and so the Nazis flourished; Hitler offered both a scapegoat and himself as a strong leader to look up to.
Following the Wall Street Crash of 1929, the German economy was in a horrendous state. Unemployment had reached almost six million by 1931 and the financial desperation was evident amongst the German population. As Fritz states early in the film, “business is bad.” The song “Money makes the world go around,” is an example of the nation’s new attitude towards the importance of money. The desire for economic security is obvious in ‘Cabaret’ with the financial lure of both Maximillian and Natalia. Economic difficulties are once more displayed when Sally is forced to sell her fur coat in order to pay for her abortion.
They were affected very badly by it. Businesses went bankrupt, workers were laid off and the list of people unemployed skyrocketed. The Nazis took advantage of this economic crisis and started putting in new attractive looking ideas. They obliterated the communist party in over four years the Nazis were hugely popular. For example, in 1930, the Nazis had only one hundred and seven seats.