Germany and the Great Depression
- Created by: Emily903
- Created on: 12-06-16 15:23
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- Germany and the Great Depression
- From 1924 foreign banks lent huge amounts of money to Germany (mostly from America) which allowed them to build factories and create jobs
- 1929: buying shares in companies and businesses became popular as people hoped to make a profit and some even borrowed money to do this
- Many Americans didn't make as much money as they would of liked so decided to sell their shares fast
- Many people couldn't buy new goods so many firms went out of business and millions lost their jobs
- But the more they sold, the more the share price dropped and many people had to sell them for less than what they had paid
- Some couldn't pay back the banks and were left ruined by debt collectors
- Many Americans didn't make as much money as they would of liked so decided to sell their shares fast
- 1929: buying shares in companies and businesses became popular as people hoped to make a profit and some even borrowed money to do this
- In 1932, Americans could not afford to buy foreign good and soon German factories had to close down and many lost their jobs
- American banks also demanded back the money that is had lent to Germany leading to the collapse of thousands more German businesses leaving many people homeless; cold, hungry and angry
- Unemployment in America, Germany, Britain, Italy, Japan and many other countries shot up
- In Britain, unemployment by 1932 rose to 3 million whilst in Germany it had reached 6 million
- People once again blamed politicians for their problems as well as the governement
- From 1924 foreign banks lent huge amounts of money to Germany (mostly from America) which allowed them to build factories and create jobs
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