The Impact of the Great Depression

Question 1

The Wall Street Crash

Answer 1

In 1929, the Wall Street Crash happened in the USA. After this, banks lost billions of dollars. Eventually, this was felt by the whole world in the Great Depression.
The main reason the Great Depression affected Germany was because it caused unemployment.

Question 2

Unemployment

Answer 2

Firstly, US banks stopped loans to Germany.
Next, German industries lost finance and laid off (fired) workers.
By 1932, 40% of workers were unemployed.
The German government had no money so reduced unemployment benefits.
The combination of these factors meant that families suffered and lost faith in democracy.

Question 3

Failure of the Weimar Republic

Answer 3

It became clear that the government could not solve the problem of unemployment.
Chancellor Müller could not improve Germany’s economy and neither could his replacement, Chancellor Brüning.