The Wall Street Crash of 1929 had a major impact on Germany that contributed to Hitler's rise to power. It plunged Germany into a deep depression by ending U.S. loans and trade, which Germany was highly dependent on. Unemployment rose sharply as the economy collapsed. This discredited the Weimar Republic and increased support for the Nazis as Hitler promised jobs, food, and a return to national greatness. The crash exacerbated political divisions in Germany over how to respond to the crisis.

1. How did the Wall Street Crash affect Germany?

2. Aims of the lesson
To study:
The reasons for the Wall Street Crash.
The impact of the Wall Street Crash on
Weimar Germany and the fortunes of
Hitler and the Nazi Party.

3. Use the diagram provided.
Work in groups of four and try to remember as
much as you can about Weimar Germany.
Turn the sheet clockwise after every 2 minutes
until everyone in your group has had a go at
adding information to the diagram.

4. The Golden Age
of Weimar
1924-29
Improved international relations
GreaterEconomicStability
GreaterPoliticalStability
Cultural/Artistic Revival

5. Just remember
a GoldenGolden PIE!
olitical stability
mproved international relations
conomic recovery
It was a
Golden Age

6. Shortly before Gustav Stresemann died in 1929 he stated:
“The economic position is only flourishing on the
surface. Germany is in fact dancing on a volcano. If
the short-term credits are called in, a large section
of our economy would collapse.”
Who was Gustav Stresemann and what are ‘short-term’ credits (loans)?
Why do you think the Golden Years officially came to an end in
1929?

8. In 1924, Gustav Stresemann had helped Germany sign up to
The Dawes Plan (named after the American banker who helped
draft it) by negotiating with the Allies.
Germany’s reparations payments had been reduced and the
Allies agreed not to occupy areas of Germany if reparations
payments were not paid on time.
Germany also arranged a sizeable loan amounting to 200 million
dollars in order to boost her financial reserves.
The Dawes Plan – and short term loans

9. The USA lend
money to Germany
GB and France pay
money back to the USA
The Dawes Plan
1924
Germany pays reparations to Britain and
France and develops industry at home

10. In 1929 the value of shares on the New York Stock
Exchange on Wall Street collapsed. The result was that
many businesses within the USA went bankrupt. This in
turn meant mass unemployment which caused the country
to slip into an economic depression. Millions families went
hungry and could not afford the rent on their houses. The
streets were filled with people desperately searching for
work, shelter and food.
Why would the American Government be desperate to recall money
that it had lent to other countries (loans) after the value of shares
on the New York Stock Exchange collapsed?
Click here for an unemployment chart

11. In 1929 the value of shares on the New York Stock
Exchange on Wall Street collapsed. The result was that
many businesses within the USA went bankrupt. This in
turn meant mass unemployment which caused the country
to slip into an economic depression. Millions families went
hungry and could not afford the rent on their houses. The
streets were filled with people desperately searching for
work, shelter and food.
Why would the American Government be desperate to recall money
that it had lent to other countries (loans) after the value of shares
on the New York Stock Exchange collapsed?
Discuss: How do you think this recall of short-term loans would
affect Germany?
Click here for an unemployment chart

12. Germany, like many other countries that relied upon loans and
trade with the USA slid into economic depression. Streets were
filled with homeless people who could not afford the rent on
their houses. These people moved into shanty towns.
Unemployment began to soar which put extra pressure upon the
government which now had to pay out more dole money. Many
people had to rely upon food handouts and charity during this
time.

13. Germany, like many other countries that relied upon loans and
trade with the USA slid into economic depression. Streets were
filled with homeless people who could not afford the rent on
their houses. These people moved into shanty towns.
Unemployment began to soar which put extra pressure upon the
government which now had to pay out more dole money. Many
people had to rely upon food handouts and charity during this
time.
Many people within Germany were said to be ‘doubly bitter’ with
the Weimar Government. This was the second time that the
government had thrown Germany into large scale economic
depression, the first time being during the period of
hyperinflation in 1923.

14. Germany, like many other countries that relied upon loans and
trade with the USA slid into economic depression. Streets were
filled with homeless people who could not afford the rent on
their houses. These people moved into shanty towns.
Unemployment began to soar which put extra pressure upon the
government which now had to pay out more dole money. Many
people had to rely upon food handouts and charity during this
time.
How far do you think that the German Government can be
blamed for the economic depression that hit Germany after
the Wall Street Crash?
Many people within Germany were said to be ‘doubly bitter’ with
the Weimar Government. This was the second time that the
government had thrown Germany into large scale economic
depression, the first time being during the period of
hyperinflation in 1923.

16. Date
No. of
unemployed
No. of seats
held by the
Nazis
May 1928 650,000 12
Sept 1929 1,320,000
Sept 1930 3,000,000 107
Sept 1931 4,350,000
July 1932 5,102,000 230
Jan 1933 6,100,000 288
Consider the impact that an event such as The Wall Street Crash
may have upon the popularity of the Weimar Government.

17. This source dates from 1932.
What can you see?
Click here if you are stuck

18. Think about:
The captions.
The message?
(Hoffnung means Hope)
Who was it aimed
at?
Look at the facial
expressions.

19. The caption reads:
‘Our Last Hope
- Hitler’
The poster is aimed at all
sections of society
The people of Germany
look worn out,
emotionally drained,
under stress…
How effective is this example of
Nazi propaganda?
Workers and
the unemployed
The Middle
Classes
Mothers and
Families
The elderly –
those with
little support
What is the message behind the
poster?

20. Heinrich Hauser describes the Berlin Municipal lodging house
where young unemployed men had to stay
Long lines of men waiting against the wooden walls, waiting
in silence and staring... More people were constantly
pouring in the door, and we stood closely packed together.
The Municipal lodging house means waiting, waiting,
standing around…My impression is of the helplessness of
the men. Eight out of every ten men are young fellows and
about a third of these are mere boys.
Suffering during the Depression?
What does this source tell you about the scale of the
Depression after the Wall Street Crash?

21. Which groups of people
suffered within Germany
following the Wall Street
Crash?
Use the worksheet to complete this spider diagram
Click here for a few examples

22. Which groups of people
suffered within Germany
following the Wall Street
Crash?
Use the worksheet to complete this spider diagram
Factory Workers . Some lost
their jobs and others wages
were cut, which made it difficult
to pay rents and buy goods. Click here for more examples
Businessmen saw their businesses
close. People had less money to spend
on goods.

23. Which groups of people
suffered within Germany
following the Wall Street
Crash?
Use the worksheet to complete this spider diagram
Businessmen saw their businesses
close. People had less money to spend
on goods.
Young People
In 1933 over
half of all
Germans
between the
ages of 16 and
30 were
unemployed.
Sixty per cent
of new university
graduates could
not get a job.
Farmers
had not done
well in the
1920s. Prices
had been falling
since 1925. In
the 1930s
farmers slipped
further into
debt.
Factory Workers . Some lost
their jobs and others wages
were cut, which made it difficult
to pay rents and buy goods.

24. Businessmen saw their businesses close.
People had less money to spend on goods. The
government increased taxes to pay for the
increasing number of poor out of work.
Young People In 1933 over half of all
Germans between the ages of 16 and 30 were
unemployed. Sixty per cent of new university
graduates could not get a job.
Farmers had not done well in the 1920s. Prices
had been falling since 1925. In the 1930s
farmers slipped further into debt.
40% of all Factory Workers were unemployed
by 1932. At the same time the government cut
unemployment benefit to save money. For the
unemployed this was a time of extreme
poverty.
Task:
Work in pairs
Discuss the likely
reactions of each
of these groups of
people.
Who would they
blame for their
problems?

25. Nazi Businessman
Well really it was the only party that promised to get us
out of the hole. Their idea was that this would only be
possible if we as a nation developed a team spirit,
solidarity and pulling on the same rope.
What did Hitler and the Nazis promise the people of Germany?
According to this source what did the Nazis believe would pull
the German Nation out of Depression?

26. Law student commenting on his experience of the 1930s.
What did he [Hitler] promise? Work and bread for the
masses. For the millions of workers that were unemployed
and hungry at the time.
What did Hitler and the Nazis promise the people of Germany?
According to this source what did Hitler and the Nazis offer
the workers of Germany?
Why was this promise seen as being so important at this time?

27. A Printer’s son commenting on his experience of the 1930s.
Anyone who said that I will lead you to the promised land,
I will deliver you from evil – anyone who said that then
they would be greeted with enthusiasm.
What did Hitler and the Nazis promise the people of Germany?
Who is this source referring to?
Click here for the next question

28. A Printer’s son commenting on his experience of the 1930s.
Anyone who said that I will lead you to the promised land,
I will deliver you from evil – anyone who said that then
they would be greeted with enthusiasm.
What did Hitler and the Nazis promise the people of Germany?
Who is this source referring to?
What do you think is meant by ‘the promised land’?
What was the ‘evil’ that people wanted to be saved from?

30. American Historian William L. Shirer, 1959.
The weaknesses of the Weimar regime were obvious.
There were too many political parties, and they were
unable to form an enduring majority in the Reichstag
that could back a stable government. [By 1932] political
power…was concentrated in the hands of a senile
President and in those of a few shallow, ambitious men
around him. Hitler saw this clearly, and it suited his
purposes.
What does this source tell us about the political problems
faced by the Weimar Republic?
Why might the problems of 1929-33 lead to a political crisis?

31. Economic problems nearly always produce political problems,
because governments suddenly find themselves having to deal
with difficult problems. This is what happened in Germany
after the Wall Street Crash of 1929.
The coalition governments in Germany found it difficult to
agree about how to help Germany through the massive
economic crisis of the depression. This led the President to
use Article 48 more and more often, so that Germany became
run more by dictatorship than by democracy.
This crisis helped Hitler to gain the second most important
job in Germany in 1933 - Chancellor of Germany. This would
eventually lead to Germany being ruled by a dictatorship.
Key Word Glossary

32. Article 48 – A part of the Constitution* that stated that laws could be
passed by the President of Germany if there was an emergency, without
having to ask the Government’s permission first.
Coalition – An alliance, usually between political parties.
Democracy – The right to elect members of Parliament who will
represent your views. The people choose the government.
* Constitution - The laws by which a country is governed or run
Depression – A time of economic difficulty – a slump.
Dictatorship – A one party state. One person leads that party and is the
absolute ruler of the state.

33. Year
Decrees
issued using
Article 48
Times
Reichstag
sat
1930 5 94
1931 44 41
1932 60 13
What does table tell us about the state of democracy in
Germany during this period?
Reichstag – German Parliament

34. What part did the Wall Street Crash play in Hitler’s Rise to Power?

35. What part did the Wall Street Crash play in Hitler’s Rise to Power?
Hitler gave
people hope and
offered stronger
leadership,
stability and
greater
prosperity.

36. What part did the Wall Street Crash play in Hitler’s Rise to Power?
Political parties were
divided over how best
to handle the
depression
Hitler gave
people hope and
offered stronger
leadership,
stability and
greater
prosperity.

37. What part did the Wall Street Crash play in Hitler’s Rise to Power?
Political parties were
divided over how best
to handle the
depression
Hitler gave
people hope and
offered stronger
leadership,
stability and
greater
prosperity.
The Weimar Republic
introduced unpopular
policies – raising
taxes, cutting wages
and reducing
unemployment benefit

38. What part did the Wall Street Crash play in Hitler’s Rise to Power?
Hitler
promised
bread, jobs
and homes
Political parties were
divided over how best
to handle the
depression
Hitler gave
people hope and
offered stronger
leadership,
stability and
greater
prosperity.
The Weimar Republic
introduced unpopular
policies – raising
taxes, cutting wages
and reducing
unemployment benefit

39. What part did the Wall Street Crash play in Hitler’s Rise to Power?
Hitler
promised
bread, jobs
and homes
The Crash ended
the relative
stability of the
Golden Years –
people were
‘doubly bitter’
Political parties were
divided over how best
to handle the
depression
Hitler gave
people hope and
offered stronger
leadership,
stability and
greater
prosperity.
The Weimar Republic
introduced unpopular
policies – raising
taxes, cutting wages
and reducing
unemployment benefit END

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