How did the Wall Street Crash affect Germany?

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.

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.

The Golden Age of

Weimar 1924-29

Improved international relationsG

reate

r Eco

nom

ic S

tab

ility

Gre

ate

r Politica

l Sta

bility

Cultural/Artistic Revival

Just remember a GoldenGolden PIE!

olitical stability

mproved international relations

conomic recovery

It was a Golden Age

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?

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

The USA lend money to GermanyGB and France pay

money back to the USA

The Dawes Plan1924

Germany pays reparations to Britain and France and develops industry at home

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

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

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.

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.

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.

650,000

Sep-29

1,320,000

Sep-30

3,000,000

Sep-31

4,350,000

J ul-32

5,102,000

J an-33

6,100,000

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

unemployment in Germany

Nu

mb

ers

of

Un

emp

loye

d

1928 - Jan

1928 - Sept

1930 - Sept

1931 - Sept

1932 - July

1933 - Jan

DateNo. 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.

This source dates from 1932.

What can you see?

Click here if you are stuck

Think about:

The captions.The message?

(Hoffnung means Hope)

Who was it aimed at?

Look at the facial

expressions.

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?

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?

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

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.

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.

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?

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?

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?

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

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?

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?

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

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.

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

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

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.

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.

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

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

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