Impact of the Great Depression

Economic & Social Impact of the Great Depression

• Trigger & Immediate Effect:​​ The ​1929 Wall Street Crash​ led the USA to recall its loans to Germany. This caused a German financial crisis, forcing many businesses to close.

• ​Unemployment Data:​​ Unemployment rose rapidly. A graph shows it grew from ​~1 million in 1928 to ~6 million in 1933.

• ​Government Response:​​ The government raised taxes and cut unemployment benefits to save money, worsening public hardship.

• ​Impact on Specific Groups:​​

  • ​Young People:​​ By 1933, over ​50% of 16-30 year-olds​ were unemployed, Even people with a good level of education (e.g. university degree) could not find work.

  • ​Factory Workers:​​ ​40% (4 out of 10)​​ were jobless, with reduced benefits and high food prices that they could not afford.

  • ​Farmers:​​ Already struggling since the mid-1920s as food price was falling. Many of them were in debt.

  • ​Businessmen:​​ Surviving businesses struggled due to plummeting consumer spending.

Political Impact & Erosion of Democracy

• Coalition Collapse:​​ The Great Depression caused a split between the ​SDP​ and ​Centre Party​ in the coalition government. Henrich Brüning (Centre party leader) suggested making further cuts to welfare benefits, but Hermann Müller (SDP leader)​​ refused to accept this. Müller resigned and Brüning became chancellor in ​1930.

• ​Erosion of Democracy:​​ The new Chancellor, ​Heinrich Brüning lacked a Reichstag majority, so he asked President Hindenburg to use Article 48. this meant that from 1930, Germany was not run in a democracy, it is effectively controlled by Hindenburg.

• ​Rise of Extremist Parties:​​ Brüning’s unpopular policies (tax rises, benefit cuts) drove voters to extremist parties promising solutions.

  • ​1930 Election Result:​​ Nazis won ​107 seats, Communists won ​77 seats.

Nazi Methods to Exploit the Crisis

• The Appeal of Hitler:​​ Portrayed as a ​strong, superhuman leader​ and "Germany's last hope." Used broad promises like "Make Germany strong" and "Smash the chains of Versailles." This appealed to the nationalists.

• ​Financial Backing:​​ ​Powerful business interests​ provided funds to support Hitler, aiming to stop the rising Communist threat to the capitalism system.

• ​The Role of the SA:​​ The Nazi paramilitary wing was crucial.

  • Had ​400,000 members in 1930, demonstrating Nazi strength at rallies.

  • Used ​violence and intimidation​ to disrupt opponents' meetings and threaten voters. In the elections of 1930 and 1932, some people were killed and voters were intimidated as they cast their votes at polling stations.

Skilful Propaganda of the Nazis

• ​Skilful Propaganda:​​ Directed by ​Joseph Goebbels, methods were modern and adaptable.

  • ​Hitler's "Flight over Germany" (Deutschlandflug) :​​ Used aircraft to speak in ​20 cities in 6 days, he was flowing all over Germany.

  • Giving people scapegoats for Germany’s problems: they claimed that the problems were caused by Jews, Communists and Weimar politicians.

  • ​Targeted Messaging:​​ Nazis owned 8 different newspapers, each aimed to sell its messages to a particular group. Posters and messages were designed to target different groups (e.g., farmers). The messages were deliberately clear and simple. Policies were dropped if they lost support (e.g., nationalizing industry).

  • ​Parades & marches: these were organised by mobile Nazi units, they include both political speeches and entertainment such as plays, concerts and sport

July 1932 Reichstag Elections

• July 1932 Reichstag Elections:

  • Nazis became the largest party in the Reichstag, securing 230 seats with 37.4% of the vote.

  • Hitler ran for German president in April 1932, polling 13 million votes but losing to incumbent President Hindenburg; this defeat nonetheless elevated Hitler to a major national political figure.

Brüning’s Dismissal & Von Papen’s Rise

• In July 1932, Chancellor Brüning attempted to use a presidential decree (Weimar Constitution Article 48) to ban the SA and SS amid political unrest.

• Army General Kurt von Schleicher organized a right-wing coalition (army officers, rich landowners, industrialists) and convinced Hindenburg to dismiss Brüning as chancellor.

• Von Schleicher selected wealthy politician Franz von Papen as the new chancellor (a figurehead for von Schleicher’s control), but drastically underestimated Hitler’s ability to manipulate political circumstances to his advantage.

November 1932 Elections & Von Papen’s Resignation

• Von Papen called another election; Nazi support weakened slightly (lost seats) but they remained the largest party in the Reichstag with 190 seats.

• Von Papen resigned after the election, and Hitler argued he should be chancellor (due to Nazi plurality in the Reichstag), but Hindenburg rejected (Hindenburg disliked Hitler and viewed him as overly ambitious and "low class").

Von Schleicher’s Chancellorship (December 1932)

• Hindenburg appointed von Schleicher as chancellor, replacing von Papen.

• Von Schleicher asked Hindenburg to suspend the constitution and make him head of a military dictatorship, claiming Hitler and von Papen were plotting a conspiracy against him.

• This request was leaked to the public, causing von Schleicher to lose support in the Reichstag.

Hitler’s Appointment as Chancellor (January 30, 1933)

• Powerful German business leaders wrote to Hindenburg urging Hitler’s appointment as chancellor; Hindenburg initially refused.

• Von Papen, determined to regain power, believed he could control Hitler from behind the scenes and persuaded Hindenburg to appoint Hitler as chancellor with von Papen as vice chancellor.

• Hindenburg reluctantly agreed, and Hitler became Chancellor of Germany on 30 January 1933.