Impact of the Great Depression

• • Stability for Germany came to an end in Oct 1929. The US economy crashed.
  • Caused a severe economic depression. US bankers and businessmen asked German banks to repay the loans and investments were removed.
  • resulted in an economic collapse in Germany. Businesses went bankrupt, workers were laid off and unemployment rocketed.
• Impact of unemployment:

  • In 1932, unemployment was at 6 million, 40% of the workforce.
  • Most sections of the German society were affected (Industrial workers, farmers, middle-class)
  • Small businesses and shops went bankrupt
• Impact of unemployment:

  • Income of the average German fell 40% between 1929-1932.
  • Led to hunger and often illness. Many Germans were evicted from their homes as they could not afford rent.
  • Slums began to appear in most cities
• Failure of Democracy:

  • When crisis struck, Germany was under a coalition government led by the SPD. The SPD wanted to increase welfare for the unemployed but coalition partners.
  • In 1930, the coalition collapsed.
  • President Paul von Hindenburg used powers under Article 48 and appointed Hendrich Bruning as the new Chancellor
• Failure of Democracy:

  • Cut government spending on welfare and cut the wages of civil servants and government employees.
  • The measures were so harsh that Bruning could not get the support of the Reichstag to pass them into law. Asked Hindenburg to use Article 48 again.
  • The Weimar Republic failed. The parties were so divided that proved impossible to form a coalition with a majority of the Reichstag.
  • Hindenburg continued to rule by degree. He decided who becomes the Chancellor and passed new laws by passing the Reichstag (Article 48)
• The rise in communism:

  • Workers felt that the Weimar Republic was not handling the economic crisis well and had let them down.
  • Political parties seemed to care more about their own positions. Unable to gain majority or get welfare measures passed.
  • Democracy was hanging by a thread as Hindenburg was now running the country and he supported Bruning’s harsh measures which were devastating to millions of ordinary Germans. Bruning is often called the ‘Hunger Chancellor’.
• The Rise in communism:

  • Some workers turned to the Nazis but many more turned to the German Communist Party (KPD).
  • During the 1920s like the Nazis, the KPD had also rebuilt their organisation. Had local party branches, youth movements and very effective publicity which published posters and pamphlets and organised meetings.
  • Between 1929-1932, around 1 million workers looked to the KPD rather than the moderate SPD
• The rise in communism:

  • KPD representation in Reichstag rose from 10% to 15%
  • The popularity of communists frightened many Germans. Business leaders were worried about communist plans to introduce state controls of businesses like the USSR.
  • Many were concerned with the growing strength of Germany’s trade unions.
• The rise in communism:

  • Fear among middle-class as they knew the communists were hostile to people like them.
  • Land-owning farmers were alarmed as governments in the USSR took over all the land and killed and imprisoned millions in the process.
  • Created a climate of fear. Germans had little trust in the Weimar Republic.
  • Many turned to the only party that seemed willing to take control of the situation and face the communists -> the Nazi Party.
• Growth in support for the Nazis:

  • While the communists gained from economic crisis, so did the Nazis.
  • Membership rose to over 800,000 by the 1930s.
  • In the 1930 election, the Nazis won 107 seats.
• The Hitler Factor:

  • Nazi's greatest campaign asset - Hitler
  • A powerful and persuasive speaker
  • Hitler ran for President against Hindenburg, lost but raised his profile hugely.
  • Great communicator. Used film, radio and prints to spread his meassage.
• The Hitler Factor:

  • Travelled by plane and hectic tour of rallies across Germany.
  • Appeared as the man of the people - someone who understands his people and their problems.
  • Hitler promised to sweep away all the coalition governments with politicians who fought for their own interests.
  • Many Germans recalled the days before democracy fondly and Hitler offered the opportunity to go back to those days.
• Use of propaganda:

  • In 1929, Joseph Goebbels was in charge of propaganda for the Nazis and used it to exploit the effects of the Great Depression.
  • Nazi leaflets, newspapers and radio broadcasts blamed the economic problems on TOV.
  • Blamed Weimar politicians for being too selfish and divided to take the necessary measures.
• Use of Propaganda:

  • Promised strong and decisive actions such as rebuilding Germany’s army which would serve millions of jobs.
  • Nazis 25 points promised sympathy and support for workers.
  • Nazi propaganda offered up culprits, particularly the Jews, to blame for the problems.
  • Hitler promised in the Nazi campaigns to end ineffective democratic coalition governments, restore the glory days of the Kaiser and authoritarian rule, return to traditional German Values, and fight the threat of communism in elections, in both the Reichstag and in the streets.
• Use of propaganda:

  • Appealed to the Germans and addressed their fears
  • A large number of Germans supported Hitler and the Nazis.
  • Wealthy industrialists provided the party with campaign funds.
  • Middle-class supported Hitler in villages, towns and cities across the country. Nazis gained many votes in rural communities with their shared views on traditional values.
• The SA and SS:

  • Frequent violent clashes between communist gangs and the police. Large unruly groups of unemployed workers gathered on street corners.
  • In contrast, SA and SS gave the impression of discipline and order which many people felt was needed now.
  • Welcomed the fact that SA was prepared to fight the communists. SA was also better organised.
  • They had the support of the police and the army when they beat up opponents and disrupted the meetings and rallies of opposing parties.
• Hitler becomes Chancellor:

  • Barrier between Hitler and the power he wanted - Hindenburg
  • Hindenburg was a national hero and well-respected by the people.
  • Senior commander of the German Armed Forces in WW1.
• Hitler becomes Chancellor:

  • Did not like democracy, and served as President from 1925 to 1929 for the sake of the country.
  • By 1932, he wanted to retire. But persuaded to stand for election to prevent Hitler from becoming President. Hindenburg agreed as he disliked Hitler and believed Hitler would make Germany unstable. In April 1932, Hindenburg won the presidential election.
  • Hindenburg wanted Chancellor Franz von Papen to be Chancellor, but he was unpopular and could not prevent Hitler from becoming Chancellor.
• Hitler becomes Chancellor:

  • Hitler’s appointment as Chancellor divide public opinion. But Hindenburg and Chancellor Franz Von Papen did not bother.
  • Confident that they could use Hitler’s support in the Reichstag since he had no real political experience and was new to getting measures passed that would restore stability to Germany and allow them to tackle unemployment. 
  • If Hitler grew too powerful, they believed they could not work with opponents to curb his influence or even unseat him if needed.
  • They turned out to be wrong.