The Wall Street Crash

• Revision video covers Weimar and Nazi Germany from the GCSE EdXL 9-1 course
• Share prices began to fall in the U.S stock exchange in October 1929
• On Black Thursday, the 24th of October 1929, the Wall Street stock market crashed
• Within one week, the value of U.S companies had fallen by four thousand million dollars
• The Wall Street crash caused a deep economic recession in the U.S and had a devastating effect on the German economy
• German banks had heavily invested in the U.S and lost a lot of money when the stock market crashed
• People began to panic and demand their savings in cash, causing a run on the banks
• German banks ran out of cash and some went bust
• Banks called in loans from German industries, causing industries to cut back on production, sack workers, and in some cases go bankrupt
• The U.S demanded repayment of the loans agreed in the Dawes Plan in 1924, which the government could not pay
• The German economy collapsed, leading to vast unemployment and further economic hardship
• The effects of the Wall Street crash affected other countries in Europe in a similar way to Germany
• Trading of goods abroad fell sharply because German industries could not sell their goods abroad
• By 1933, 6 million Germans were unemployed
• The income tax gained from people in work fell sharply, forcing the government to raise taxes to support the economy and public services
• Employment had a serious effect on the people

  Income tax gained from people in work falling sharply
• Government response to falling income tax

  Forced to raise taxes to support the economy and public services
• Result of government raising taxes


  Those who kept their jobs were now paying more in taxes
• Result of companies cutting wages

  People had less to spend
• Government forced to cut unemployment benefit rate


  Those who lost their jobs were even worse off
• Effect of share prices crashing in the U.S

  The value of people's savings also crashed
• Result of people becoming poorer

  Number of homeless people rose sharply
• Effects of economic crisis on society

  • People living in tents in makeshift camps in parks
  • Increase in violence and theft
  • Rise in number of homeless people
  • Angry and bored people wandering the streets
• Government response to increasing crisis


  Failed to respond effectively
• Chancellor Heinrich Bruning's actions

  Increased taxes and cut unemployment benefits
• Result of Chancellor Bruning's actions

  Angered pretty much everyone
• Effect of policies being rejected by the Reichstag

  Democracy essentially collapsed
• Reichstag met only 94 times in 1930, 41 times in 1931, and 13 times in 1932
• Result of Reichstag's inability to work together


  Chancellor was unable to get anything done
• Chancellor invoking Article 48


  Bypassed the Reichstag and passed emergency laws
• Result of Chancellor's reliance on Article 48

  Powerless to do anything as causes of the crisis were out of the government's hands
• Chancellor Bruning resigned in May 1932
• Speaker: 'History teaches'