The Great Depression

Annotations:

• A worldwide economic recession triggered by the Wall Street Crash.

1. Impact on Germany
   1. German government

      Annotations:

      • It couldn't borrow money from the USA. It refused to print more money, so it had to increase taxes instead. Governments workers lost their jobs and wages were reduced. The government was lamed for depending on US loans. The coalition government already had its problems, as divided the government couldn't agree how to solve the crisis.
   2. German Businesses

      Annotations:

      • They had to pay back loans to the USA and couldn't get new ones. They had to pay higher taxes to the government. The markets dried up as few people in Germany or other countries had money to buy German goods.
   3. German people

      Annotations:

      • Millions of workers and farm labourers lost their jobs. Banks went bust and people lost their savings. Businesses collapsed, as did investments based on them. Young people were particularly badly affected by job losses. Many families suffered terrible poverty, as men couldn't find work and uunemployment benefit had been reduced. In 1928, 0.8 million Germans were unemployed. By 1932, this had risen to 6 million.