1 - impact of the great depression

Question 1

When was the Wall Street Crash?

Answer 1

October 1929

Question 2

unemployment levels in spring 1929

Answer 2

2.5 million

Question 3

economic impact of The Great Depression

Answer 3

• unemployment continued to rise
• demand for German goods collapsed
• loans on which Germany relied were recalled
• production was cut back (more unemployment)
• government income fell (system only designed to cope w/ 800,000)

Question 4

unemployment by 1932

Answer 4

almost 1/3 of workers were unemployed, & others on shorter hours or pay cuts (increased poverty & people unable to pay rent/mortgages)

Question 5

political impact of The Great Depression

Answer 5

• many young men joined paramilitary groups (eg. Nazi SA, Communist Rotfront)
• weakened Great Coalition (SDP did not want cuts in unemployment insurance system, DVP did)
• industrialists argued that welfare state should be abolished
• attempt to compromise failed, Cabinet resigned (weakened democracy)
• Hindenburg brought in Brüning (right-wing, supported his policy of rearming)
• people turned more & more to extremist parties
• support for Communists grew

Question 6

SA

Answer 6

Nazi paramilitary group (“brownshirts”)

Question 7

Rotfront

Answer 7

Communist paramilitary group

Question 8

Brüning’s entrance to power

Answer 8

• brought in by Hindenburg after Great Depression, as he supported rearmament
• didn’t have majority
• stated that if he were defeated, he’d dissolve Reichstag & rule by emergency decree

Question 9

1930 election

Answer 9

Nazis made considerable gains, left a divided Reichstag, problems continued in 1931-32 (democracy unable to deal with problems)

Question 10

banking crisis of July 1931

Answer 10

Austrian bank Kreditanstalt collapsed -> customers in other banks began to withdraw money -> banks ran out of money & were forced to close

Question 11

impact of banking crisis of July 1931

Answer 11

• France blocked plans for emergency loan to Germany
• one-year suspension of reparation payments
• group of international financial experts said reparation payments & inter-Allied debts should be cancelled

Question 12

When was Brüning dismissed?

Answer 12

May 1932