The Great Depression

October 1929 - WALL STREET CRASH OCCURS in America. American banks recall loans upholding german industry. World trade slumps, German exports fall. Sparks international econmic crisis. Ger had been depending on US loans in Dawes Plan. USA CAN NO LONGER AFFORD TO LEND GERMANY MONEY. They recall in loans that have already been paid and ask for the money back. 

Unemployement increases from 1.6 million in October 1929  to 6.12 million by Feb 1932. Ger's economy collapses without US loans. Industrial production goes into decline. Factories close, banks go out of business. America stopped trading with other countries to protect it's own trade. They developed a policy of "protectionism" this led other countries to also do this.. noone now traded with Germany, millions of germans lost their jobs.

• Poverty, homlessness, hunger, impetigo all rise
• suicide rate increases to 260 per million compared to 85 per million in the UK
• Women employed as cheaper alternatives to men, upsetting traditional gender roles
• prostitution, vagrancy and crime all increase
• NAZIS exploit this - they open hostels for unemployed SA members & provide soup kitchen to feed the hungry

Who suffers?

• Businessmen - close business or if they survived they faced less income because people had less £ to spend & faced tax increases
• Young people - over 50% of 16-30 year olds were unemployed. 60% of uni graduates couldn't get a job
• Farmers - people couldn't afford to pay for food
• 40% of factory workers become unemployed by 1932. The Gov then cut unemployement benefits. 

Gov Policies 

• Chancellor Bruning had to travel in a train with the blinds pulled down to avoid rocks being thrown at him. He was appointed in March 1930 to deal with the crisis and introduced tough economic policies inc 

Increasing cost of imported food to help german agriculture - but this also raised food prices

Reduces salaries and wages but increases taxes ( many people were already struggling financially so this seemed like the gov were trying to add more pressure by reducing support)

Social services cut back, benefits reduced

THIS WAS DONE TO AVOID HYPERINFLATION AND SAVE THE GOV MONEY. BUT IT SEEMED TO WORSEN EVERYDAY LIFE FOR GERMANS. THE POLICIES WERE SUPPOSED TO HELP THE ECONOMY BUT CAUSED LIVING STANDARDS TO FALL. BRUNING…