“ We demand that our loans are paid back as the Wall St Crash has created a depression in the USA.” The effects of the Wall St Crash were felt around the world – and especially on Germany. Stresemann had just died and the country had no choice but to pay the money back to the USA as agreed. The result for the Weimar Republic were devastating as a depression formed in Germany.
THE DEPRESSION German businesses closed down as loans were repaid and trade dramatically slumped Unemployment shot up. By 1932 unemployment figures stood at a missive 6 million. Millions of Germans became homeless, and set up camps on the outskirts of towns. They became reliant on charity food and soup kitchens.
SOURCE A – A description of the effects of The depression in Germany. Men standing hopelessly on street corners of every industrial Town in Germany; houses without food or warmth; young people without the chance of a job. All these things explain the bitterness which burned in the minds of millions of ordinary Germans. Ordinary Germans suffered terribly thorough out the depression. Germany had once been one of the most powerful in Europe but the people felt humiliated and ashamed. People began to turn their anger toward the Weimar Politicians.
HOW DID THE WEIMAR GOVERNMENT TRY AND DEAL WITH THE DEPRESSION? The Government increased taxes in order to try and raise money for the needy. However, this made matters worse as it caused more problems for businesses and other people who needed the cash It reduced the wages of Government officials in order to save money but this made their lives even worse. The Weimar Government’s inability to solve the depression, and the feeling that they were making things worse had a devastating impact
THE RESULT <ul><li>People blamed the Weimar Government for the Depression and for making things worse. They began to look at other parties (The Nazis) who promised hope. </li></ul><ul><li>The political parties that made up the Coalition of the Weimar Government could not agree on what to do. This led to the COLLAPSE of the Government. </li></ul><ul><li>General Hindenburg (The 84 year old hero from WW1) took over as President </li></ul>President Hindenburg “ I’m taking control here boys!”
The Depression triggered by the Wall St Crash was just what I needed. It created millions of unemployed workers – so I promised them jobs. It created massive levels of poverty – so I promised wealth and prosperity. It created an even weaker Germany – so I promised them strength! People began to vote for me.