The Great Depression

• Wall Street Crash


  • 1920s, New York Stock Exchange prices rose (Shares & Stocks)
  • October 1929, investors lost confidence & sold their shares/stocks
• Many American businesses were destroyed due to the Wall Street Crash
• There was a downturn in the US economy due to the Wall Street Crash
• USA recalled the loans it made to Germany


  Led to financial crisis in Germany
• The German government did not have money to repay the loans
• International trade decreased as Germany had no funds from exports
• Germany did not produce as much, factories closed & employers sacked
• The German government cut unemployment benefits
• 50% of 16-30 year olds were unemployed in Germany in 1933
• 60% of university graduates in Germany could not get a job
• 4 out of 10 factory workers in Germany could not get a job
• Food prices were high, many could not afford to eat in Germany
• 40% of all factory workers were unemployed in Germany by 1932
• Farmers in Germany had falling food prices and many were in debt, selling land or struggling
• Businesses in Germany struggled as people had less money to spend on goods due to unemployment and tax rises
• Businesses in Germany had to sack people or shut down
• The SDP and Centre Party (main parties in the German government) fell out
• Brüning (Centre Party leader) suggested further cuts to welfare benefits, Müller (SDP leader) disagreed and resigned, Brüning became chancellor
• Brüning did not have a majority so used Article 48
• Germany was not a democracy in 1930
• Brüning introduced many unpopular measures like tax rises and further cuts to employment benefits, increasing suffering in Germany
• Many Germans turned to extreme parties due to the suffering caused by Brüning's measures