American Banks recalled the loans they had lent to German business which lead them into bankruptcy and production cuts.
A fall in production lead to increased unemployment, but then this lead to sales falling as people had less money to spend on goods.
Farmers were also affected as the unemployed brought less food and farm prices fell dramatically.
By 1933 there were 6 million germans out of work, unemployment was high, businesses were falling and the germans were blaming the government, losing confidence in democracy.
This is when many german people turned to extremist parties such as the Nazis.
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Hitlers Beliefs
After Hitler was released from prison in 1924 he started to reorganise the Nazi party. He started the Hitler youth and the a new fighting force, the **. The Nazi party did badly in the elections of the 1928, but after the depression hit the Nazis seemed much or appealing to the German people.
Hitler believed that the weak leaders of the Wiemar government caused many of Germany's problems.
Hitler also said that the Nazis would make Germany strong again but overturning the treaty of Versailles.
He also said that the Germany would regain a great military power by increasing the army size.
Hitler blelieved that the aryan race was superior to all, and most of all the jewish community who he blamed for all of germanys problems. He argued that germany had to be purified of all jewish blood before they could become the Master race. He also hated Communism and wanted to destroy it.
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Elections and political scheming 1929-1933
In the election of 1930, the 4 parties that made up to Coallition government lost some seats in the reichstag to extremist parties.
The working class were more favourable to the communist who wanted to evenly share out wealth,. The middle class were more favourable to the nazis who promised strong leadership, the overturn of the treaty of versailles and a more powerful nation.
In The reichstag elections of 1930 the nazis gained 107 seats, which made them the second largest party behind the socialists.
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