US depression effect on Germany

• In 1929, the American Stock Exchange collapsed, causing an economic depression where US banks and businesses lost large sums of money
• The Depression hit Weimar Germany hard as America called in all its foreign loans, impacting the German recovery built on short term loans from the USA
• By 1932, unemployment in Germany had risen to 6 million, leading to bankruptcies and profit drops for businesses, especially affecting farmers
• The Weimar Government's response to the Depression included Chancellor Brüning cutting government expenditure, wages, and unemployment pay in July 1930, using President Hindenburg's emergency powers under Article 48 to pass the measures by decree
• The Depression increased support for extremist parties in Germany, with anger and bitterness aiding the rise of the Nazis as many blamed the political parties and the democratic governance of the Weimar Republic
• Many workers turned to communism, but the fear of this by wealthy businessmen led them to finance Hitler's campaigns and support the Nazis to fight elections
• Middle-class Germans, disillusioned with democracy's failure, sought strong leadership to protect them from Communism and restore Germany's greatness, shifting away from democratic ideals