The crisis also caused a decline in exports and productions as the demand for exports collapsed and the world trade slumped for Germany. This also concluded in huge unemployment and lowering wages. The result of the German industry was they could no longer pay it’s way. Without over sea’s loads and with its export trade falling bankruptcies increased dramatically. This couldn’t have come at a better time for the Nazi’s as because of this crisis the decline in support of the Weimar Republic decreased with the lack of confidence and underlying economic problems within Germany, he
Germany was bankrupted after WW1 and robbed of its ability to feed itself and pay war reparations without printing money. The consequence of this was that old money was wiped out in Germany. The new money borrowed in order to rebuild the German economy came largely from Jewish bankers, who somehow avoided the effects of the hyperinflation. Many who suffered a substantial amount during hyperinflation turned to support a strong party who promised to make a difference. Hitler came to power on a campaign of mass reconstruction of Germany, and building up the military to the extent of having the clout to tear up the hated Versailles agreement and get away with it.
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.
The Treaty of Versailles in the mind of the Germans stabbed them in the back, especially the guilt clause that made them take blame for the First World War. Hitler capitalized on these sentiments and used them to rally the German people for his own Nazi Party. This is made obvious in his books “Mein Kampf” and its unnamed sequel. Another example is found in Triumph of the Will, in one of the speeches made during the movie. Without the Treaty of Versailles Germany would not have been in bad shape to begin with, thus not needing Hitler and second without it, Hitler would have lost a major public relations tool.
Hitler used propaganda, elimination of the opposition, and a cult of personality to gain the support and trust of the German people in a time of economic crisis to his benefit and the rest of the world's loss. Single party states arise from a crisis, and Germany was suffering from a very large one at that time. The end of World War I in 1918 had left the economic state in shambles, and the loss struck the German people hard. Furthermore, the Treaty of Versailles the following year resulted in the demilitarisation and many cuts from German land and territory. Hitler criticized the carving up of Europe by the "Big Four" (the US, UK, France and Italy), stating that the Germans were the "master race".
The Versailles Treaty required Germany to pay stiff reparations. The reparations bill totaled $33 billion. Germany faced disastrous inflation.The anger that built up in Nazi Germany - and which was played on by Hitler during his rise to power had long term causes that went back to the 1919 Treaty of Versailles since the patriotic Germans had never forgotten their nation's treatment in Paris. The peace settlements led to the creation of new nations of Eastern Europe. However, the principle of national self-determinations had not always been followed.
Due to the failure of the Weimar Republic and general public dissatisfaction arising from poor economic conditions exacerbated by the Treaty of Versailles, coupled with the 1929 Wall Street Crash, German citizens were understandably desperate for change. Until this point in time the Nazi party, and Hitler, had been essentially unpopular. However, the economic situation ensured Hitler’s increasing popularity as the people looked toward more extreme but non-communist ideals. The initial consolidation of Nazi power in 1933 arose from key events such as the reichstag fire, implementation of the Enabling Law, removal of external and internal opposition, and the night of long knives. Although Hitler was appointed chancellor, the Nazi party was still outnumbered in the cabinet, so when the election was called in February 1933 Hitler knew that he must once again win the support of the public.
This was especially the case for Germany as she was to reap the blame for the First World War. The peace treaties took place soon after the final bloodbath of WW1, emotions would have been raging which would have tainted some of the decisions made, and soldiers would have retired back to their homes and would have been reluctant to want to be involved in border shifting and disputes. The Allied countries wanted Germany to concur to a harsh settlement but the United States brought diplomacy into the situation. The treaties were not just and reasonable but without the United States, Germany would have been handed a much harsher punishment. The injustice of the settlement unintentionally gave birth to long term problems, including key events for the lead up to the Second World War.
By September 1930, the economy of Germany was in deep depression as a result of the Wall Street Crash of November 1929 and the recall of the American loans that had propped it up. Unemployment had rocketed to 3.1 million (15.3%), and the Weimar politicians seemed incapable of solving the problems. In this situation the Nazis began to be seen as a way out, and their support rose. They gained 107 Reichstag seats (18.5% of the total). By July 1932, the economic depression that
However eventually the treaty became ineffective and ultimately was the main cause of World War 2. Richard Jones-Nerzic’s statement that the treaty ‘did a remarkably good job’ can only be considered true when looking at the short term effects , but overall the treaty created horrific outcomes. The Treaty of Versailles initially achieved its aims as Richard Jones-Nerzic stated. Germany had to agree to numerous terms including; war guilt, reparations, limited armies, loss of colonies as well as the creation of the League of Nations. All of the terms weakened Germany as the Allies wanted to prevent another war and knew that Germany was the greatest threat.