The Wall Street Crash 1929

The Wall Street Crash 1929 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.

Improved international relations The Golden Age of Weimar 1924-29 Greater Political Stability Greater Economic Stability Cultural/Artistic Revival

Just remember a Golden PIE! It was a Golden Age P olitical stability I mproved international relations E conomic recovery

Why do you think the Golden Years officially came to an end in 1929? 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)?

Economic Problems caused by The Wall Street Crash

The Dawes Plan – and short term loans 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 Plan1924 GB and France paymoney back to the USA 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. 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. How far do you think that the German Government can be blamed for the economic depression that hit Germany after the Wall Street Crash?

Unemployent in Germany 1928-1933

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 elderly – those with little support 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… Mothers and Families Workers and the unemployed The Middle Classes What is the message behind the poster? How effective is this example of Nazi propaganda?

Suffering during the Depression? What does this source tell you about the scale of the Depression after the Wall Street Crash? 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.

Use the worksheet to complete this spider diagram Which groups of people suffered within Germany following the Wall Street Crash? Click here for a few examples

Use the worksheet to complete this spider diagram 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? 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

Use the worksheet to complete this spider diagram Businessmen saw their businesses close. People had less money to spend on goods. Farmershad not done well in the 1920s. Prices had been falling since 1925. In the 1930s farmers slipped further into debt. Young PeopleIn 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. Which groups of people suffered within Germany following the Wall Street Crash? 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. Task: Work in pairs Discuss the likely reactions of each of these groups of people. Who would they blame for their problems? 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. Farmers had not done well in the 1920s. Prices had been falling since 1925. In the 1930s farmers slipped further into debt. 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.

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? 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 Hitler and the Nazis offer the workers of Germany? Why was this promise seen as being so important at this time? 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? Who is this source referring to? 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. Click here for the next question

What did Hitler and the Nazis promise the people of Germany? Who is this source referring to? 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 do you think is meant by ‘the promised land’? What was the ‘evil’ that people wanted to be saved from?

Political Problems caused by The Wall Street Crash

Why might the problems of 1929-33 lead to a political crisis? What does this source tell us about the political problems faced by the Weimar Republic? 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.

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

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. 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. * Constitution - The laws by which a country is governed or run

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? Hitler gave people hope and offered stronger leadership, stability and greater prosperity. Political parties were divided over how best to handle the depression

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. Political parties were divided over how best to handle the depression 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 gave people hope and offered stronger leadership, stability and greater prosperity. Political parties were divided over how best to handle the depression The Weimar Republic introduced unpopular policies – raising taxes, cutting wages and reducing unemployment benefit Hitler promised bread, jobs and homes

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. Political parties were divided over how best to handle the depression The Crash ended the relative stability of the Golden Years – people were ‘doubly bitter’ The Weimar Republic introduced unpopular policies – raising taxes, cutting wages and reducing unemployment benefit Hitler promised bread, jobs and homes END

The Wall Street Crash 1929