Germany S3 L1-L3

• What impact does an economic depression have on any country?
• Impacts of an economic depression

  • Inflation
  • Fall in wages, world trade and government income
  • Greater divisions in coalition governments
  • Increased votes for extremist parties, nationalism and despair
• The impact of 'Black Thursday'

  1. 24th October 1929- New York stock exchange fall of share prices

  2. 29th October- another collapse- the value of the largest American companies lost $10 billion + smaller investors lost savings

  3. Impact companies bankrupt, workers lost jobs

  4. Banks called in existing loans Germany fell into depression
• German economic recovering (1924-28)


  Largely financed by US loans
• After wall street crash loans dried up

  Banks who lended money on short term loans asked for immediate repayment
• USA-large overseas market for Germany


  Now in demand for imported goods
• 1929-1932-export + trade declined 61%// industrial production 58% of 1928 level
• Impact of the depression


  • Industrial production
  • Companies (foreign trade collapse)
  • Banks (may crisis 1931)
  • Unemployment (increased)
  • Industrial areas
  • White Collar workers (badly hit)
  • Farming
• Farming declined in 1929-1932 by 11%
• Companies bankrupt + workers reductant
• Even companies that survived cut hours & wages of workers
• July 1931-closed Stock exchange 2 days to provide financial system temporary respite
• 1932-% of all German workers 8 million estimated
• Areas most impacted by the depression

  • Depression in the Ruhr, Silesia (main port cities)
• Impacts on white collar workers

  • Reductions in salaries
  • Civil servants- severe cuts in workforce + reductions in salaries
• Farming struggled in 'golden age'
• Prices collapsed
• Exports of agriculture produce declined
• Sales of food fell- Germany had less money to spend
• Forced to give up farming- banks demanded repayment of loans-unemployment for landowners
• The impact unemployment had on society-Poverty
• Unemployment welfare benefits


  WR well-developed system, but cost-overwhelmed budget so-1930- limited amount of benefits
• People were only entitled a fixed amount of relief then it was the responsibility of the local authorities (less generous)
• Women less benefits than men +younger people less than adults
• Impact worse for towns that depended on one industry eg.) Glassworks in Brand-Erbisdorf depression
• Poverty rising increase in poor nutrition + living conditions eg.) TB and Rickets
• Suicide rate increased
• Shanty towns on outskirts of cities increased
• Average family diet- 'too little to live on, too much to die from'
• Impacts on young people

  • High unemployment rate eg.) Hamburg- 14-25 yr old male unemployment in June 1933-39% // women = 25.2%
  • Gangs of young men congregated in public spaces - caused alarm among older middle-class citizens - thought that the increased involvement in crime meant more young men were being drawn into extremist political organisations
• Convictions didn't increase - no. of 14-25 yr olds who were accused increased
• Theft increased during depression as well as youths charged with offences against the state eg.) participating in violent disorder during political demonstrations reflected the political situation
• Extremist groups that young men joined


  • KPD-success-working-class youths from wild cliques to engage in street battles with their opponents
  • Paramilitary organisations of nationalist right did the same
  • SA+Hitler youth-gave boys + men: food, shelter, uniforms = excitement of street battles
• Youth membership not stable + not much contact with political extremities
• Females involved less
• Female proportion of workforce increased during depression
• Unemployed reignited debate of whether married women should be employed
• Campaign (right wing) = 'double earners'
• May 1932-law allowing married women civil servants to be dismissed if economic circumstance was secure-symbolic victory
• After law passed, Reich postal service dismissed 1000 married women