The years of Depression

After WWI the economic conditions of Germany were very bad.

Germany was totally dependent on the help provided by the USA for economic recovery.

But the USA withdrew its support in 1929 due to the stock market crash.

Stock Market Crash

In 1929, USA stock market called the Wall Street Exchange crashed.

On a single day, October 24, 1929, 13 million shares were sold.

This was the start of the Great Economic Depression

Factories were shut down and exports fell.

Farmers were also badly affected.

But the worst sufferer was Germany.

Effects on Germany Economy

By 1932, industrial production in Germany was reduced to 40% of the 1929 level.

Workers lost their jobs, unemployment reached 6 million.

People with placards saying, “Willing to do any work”, were gathered on streets.

Criminal activities also increased and there was total hopelessness all over the country.

Businesses got ruined and the wealthier section of society feared that they will come to the level of the working class.

The large mass of peasantry was also affected

The Weimar Republic was also not able to provide strong leadership to German people at the time of crisis.

Weimer constitution had some defects which made the establishment of dictatorship possible.

The article 48 which gave the President the powers to impose emergency and suspend civil rights.

Because of this 20 different cabinets lasting on an average 239 days.

People also lost confidence in the parliamentary system and democracy.

Revision

Wall Street Exchange led to the economic depression in the USA in 1929 which affected entire Europe but Germany was badly affected.

USA stock market crash affected German economy the most because Germany was basically dependent on loans by USA for all its economic recovery.

Economic depression resulted in factories shut down, export fell, increase in crime and unemployment.

Frequent use of Article 48 which was used to declare emergency in the country led in the loss of people's confidence in parliamentary system and democracy.

The End

Weimer Republic also failed in bringing the economic and political stability in Germany at the time of crisis.