What is going on in Germany during the Great Depression?

How many people were unemployed by 1932?

Nearly 33% of the workforce was unemployed and there were others who worked shorter hours or cut of pay to keep jobs.

What happened as a result of the Wall Street crash?

The Wall Street Crash led to the collapse of the US economy.

Resulted in US businesses and banks curtailing loans to Germany and recalling loans they had already made.

What happened as unemployment continued to rise?

As unemployment continued to rise people had less money to spend and demand for goods collapsed.

What had happened even before the Wall Street Crash?

Even before the crash, unemployment in Germany had been rising. 

By Spring of 1929, it had already reached 2.5 million. 1933 reached 6.014 million.

What was happening in rural areas?

Rural areas were already suffering from low prices and unemployment, but now hardships spread through urban areas.

What was common during this time?

Malnutrition was common and was accompanied by diseases that arise from poverty, poor diet and poor housing.

What had been assumed when the benefit system was introduced?

When the benefit system had been introduced it had been assumed that it would not have to cope with more than 800,000 unemployed, and that periods of unemployment would be short.

Why was the crisis made worse?

Crisis made worse in July 1931 with the collapse of Austrian bank Kredit Anstalt.

Most banks had only small amounts of money in reserve, customers of other banks feared this was just the beginning of the collapse of banking system and so began to withdraw their money.

What did France block?

France blocked an emergency loan to Germany, which might have helped to ease the crisis and stimulate the economy.

What happened in 1932 due to no signs of improvement?

In 1932, with no signs of improvement, a committee of financial experts agreed that reparations and Inter-Allied debts should be cancelled.

However, this did not solve the crisis in Germany, and economic problems fuelled political instability.