Consequences of the Great Depression in Germany

Consewu

1922

Germany defaulted on its payments —> couldn’t pay back to the countries

Losses

Germany was in deep trouble following the Wall Street Crash. It had a huge over-reliance on American loans provided through the Dawes Plan. These were short-term loans to help Germany recover economically & pay off reparations. Struggling American banks now demanded repayment of these loans → which Germany could not afford to pay

Broken Business

Effect on Germany's Trade and Industry was enormously devastating markets as German goods collapsed. Prices and wages dropped, and many family businesses on which Germany is built went bankrupt

Failing Farms

Agriculture had been depressed through the 1920’s the depression led to many small farms going bankrupt.

Deadly Diseases

Poverty quickly became endemic across Germany. Long lines of unemployed people queued for meagre food supplies. Diseases like TB or pneumonia increased quickly infant mortality rose.