the Great Depression

The Wall Street Crash
1. October 1929 - share prices began to fall on Wall Street stock exchange in New York, this meant people's investments fell in value
2. People rushed to sell shares before they fell further
  1. panic sent selling prices even lower
Economic Effects
1. Banks were huge investers - suffered huge losses - people rushed to get their money back, so some banks ran out of cash
2. German industrial output fell and unemployment rose
3. Worldwide depression was a disaster for export industries but high unemployment meant that domestic demand for goods fell too. Unemployment rose further.
Social and political effects
1. The middle classes lost savings, their companies or their homes
2. Workers became unemployed
3. 1930 to 1932 - Heinrich Bruning was chancellor, he proposed:
  1. Raising taxes to pay the cost of unemployment benefit
    1. This pleased no one
      1. Right-wing & middle classes and wealthy opposed higher taxes
      2. Left-wing & working classes opposed lower benefits
      3. Bruning lost control of Reichstag, the economy and the streets. He resigned in 1932, leaving a dangerous power vacuum for a new leader to step into
  2. Reducing unemployment benefit to make payments more affordable

Resource summary

	Created by abikj18 about 9 years ago