Depression to dictatorship

Depression to Dictatorship: Germany 1929–1934

Key Specification Focus:
• What were the effects of the Great Depression on Germany?
• Why did support for extremist parties grow after 1929?
• How and why did the Nazis gain power in 1933?
• How did Hitler turn his position as Chancellor into a dictatorship by 1934?
• What were the key events that helped Hitler consolidate power?

Specified Content:
• The impact of the Wall Street Crash on Germany
• Political and economic crisis in the Weimar Republic 1929–33
• Growth of support for the Nazis and Communists
• Reasons for the appointment of Hitler as Chancellor in 1933
• The Reichstag Fire, Enabling Act and elimination of opposition
• The Night of the Long Knives and the death of Hindenburg
• Establishment of the Nazi dictatorship by 1934

The Wall Street Crash (1929)
• The American economy had boomed throughout the 1920s, but reckless investment created a financial bubble.
• On ‘Black Thursday’ (24 October 1929) share prices in the New York Stock Exchange collapsed.
• Between 1929 and 1932, US industrial production fell by 45%. Millions lost their jobs.
• The crisis quickly spread to Europe as American banks demanded repayment of loans.

Effects on Germany
• Germany had been dependent on US loans under the Dawes Plan (1924). When these were recalled, German industry and trade collapsed.
• Gustav Stresemann warned in 1929 that Germany was “dancing on a volcano” because its recovery was built on short-term loans.
• Industrial production halved between 1929 and 1932.
• Unemployment rose dramatically:

  • 1928: 650,000

  • 1930: 3,000,000

  • 1932: 5,100,000

  • January 1933: 6,100,000
    • By 1933, half of young people were unemployed, and 40% of factory workers had no work.
    • Farmers and businesses also suffered as people had less money to spend.
    • The government’s spending on unemployment benefits rose sharply, worsening its financial crisis.
    • The Depression led many to lose faith in democracy and turn to extremist parties.

Political Failure and the Weakness of Weimar Governments
• In March 1930, Chancellor Hermann Müller resigned when his coalition government disagreed over how to pay for rising unemployment.
• He was replaced by Heinrich Brüning, whose austerity policies worsened the crisis:

  • He cut government spending, wages and unemployment pay in July 1930.

  • This reduced demand, deepening the Depression and increasing unemployment.
    • The Reichstag refused to pass Brüning’s measures, so President Hindenburg used Article 48 to rule by decree.
    • Frequent use of Article 48 undermined democracy and made rule by dictatorship seem more acceptable.
    • Political instability grew: between 1930 and 1932, the Reichstag elections were dominated by extremist parties.

The Rise of Extremism (1930–1933)
• The Depression radicalised German politics. Many unemployed workers turned to the Communist Party (KPD).
• The middle classes, fearing communism, turned to the Nazis (NSDAP).
• By July 1932, the Nazis were the largest party in the Reichstag with 230 seats (up from 12 in 1928).
• By 1932, 319 out of 608 seats were held by parties opposed to democracy.
• The Nazis were the main beneficiaries of this shift.

Reasons for the Growth of Nazi Support (1929–1933)
• Effects of the Great Depression – mass unemployment, poverty and loss of faith in democracy created ideal conditions for extremist promises.
• Failure of the Weimar government – Brüning’s cuts and reliance on presidential rule made the system appear weak.
• Fear of Communism – the 1917 Russian Revolution and the 1919 Spartacist Rising created fear of Communist takeover; middle and upper classes supported the Nazis as protection.
• Improved Nazi Organisation – after the failed Munich Putsch (1923), Hitler reorganised the NSDAP to win power legally. The party developed national networks and disciplined propaganda teams.
• The Appeal of Hitler – Hitler was charismatic, promised strong leadership, and offered to restore German pride by tearing up the Treaty of Versailles and uniting the nation.
• The Strength of the SA – by 1930 there were around 400,000 storm troopers who created an image of order and discipline and intimidated political opponents.
• Nazi Propaganda – led by Joseph Goebbels, Nazi propaganda portrayed Hitler as Germany’s saviour, promised national unity (Volksgemeinschaft), and blamed Jews and Communists for Germany’s problems.
• Nazi campaigns used modern methods such as film, radio, posters, rallies, and the “Hitler over Germany” airplane tours.

Nazi Appeal to Different Social Groups
• Working Class – attracted by promises of “Work and Bread”, national pride and an end to unemployment.
• Middle Class – supported the Nazis out of fear of communism and dislike of Weimar’s liberal culture.
• Farmers – attracted by promises to protect land and stop Communist confiscation; Nazi policy later limited land seizures to Jewish owners.
• Big Business – supported Hitler as protection against Communism and funded Nazi propaganda; industrialists such as Krupp and Benz donated heavily.
• Young People and Women – attracted by Hitler’s energy and promises of a better future; Nazi propaganda targeted families, patriotism and moral revival.

The Role of Hitler’s Personality
• Hitler’s oratory and image of strength inspired confidence in a time of crisis.
• He appeared to offer unity, discipline, and hope to a nation suffering from unemployment and humiliation.
• His personal popularity was crucial to Nazi success.

How Hitler Became Chancellor (January 1933)
• Political instability between 1930 and 1932 meant no Chancellor could control the Reichstag.
• Brüning (1930–32) ruled by decree under Article 48 but was unpopular and dismissed.
• Franz von Papen (1932) tried to lead a conservative government but lacked support; he lifted bans on the SA and SS to gain Nazi cooperation.
• General von Schleicher replaced von Papen but also failed to control the Reichstag.
• Behind the scenes, von Papen persuaded President Hindenburg to appoint Hitler as Chancellor, believing he could be controlled.
• On 30 January 1933, Hitler was appointed Chancellor of Germany.
• Only three Nazis were in the Cabinet, but Hitler intended to expand his power legally and destroy opposition from within.

From Chancellor to Dictator (1933–1934)

1. Reichstag Fire (27 February 1933)
• The Reichstag building was set on fire; a Dutch Communist, Marinus van der Lubbe, was arrested.
• Hitler exploited the event to stir fear of a Communist revolution.
• He persuaded Hindenburg to issue the Decree for the Protection of the People and the State, which:

  • Suspended civil liberties.

  • Allowed imprisonment without trial.

  • Banned Communist newspapers and meetings.
    • Thousands of Communists were arrested, and opposition silenced before the next election.

2. March 1933 Elections (5 March)
• Despite intimidation and propaganda, the Nazis won 288 seats (43.9%) — still short of a majority.
• The Communists were banned from taking their seats, and Hitler gained support from nationalist parties, giving him a two-thirds majority.

3. The Enabling Act (23 March 1933)
• Passed by the Reichstag at the Kroll Opera House under heavy SA and SS intimidation.
• Gave Hitler power to make laws without the Reichstag for four years.
• Only the Social Democrats opposed it (94 votes); it passed 441–94.
• Marked the end of parliamentary democracy and the start of Nazi dictatorship.

4. Removal of Opposition (1933)
• 26 April – Nazis took control of local governments; “alien elements” were removed from civil service, education, and the courts.
• 2 May – Trade unions banned; their offices closed, leaders arrested, and funds seized. Replaced by the German Labour Front (DAF). Strikes outlawed; the first concentration camp opened at Dachau.
• 14 July – All political parties banned except the Nazi Party. Germany became a one-party state.

5. The Night of the Long Knives (30 June 1934)
• The SA, led by Ernst Röhm, wanted more power and a “second revolution”.
• Hitler saw Röhm as a threat and needed army support.
• The SS arrested and executed Röhm and around 400 others, including former Chancellor von Schleicher.
• This eliminated internal rivals and won the loyalty of the army.

6. Death of Hindenburg (2 August 1934)
• President Hindenburg died of lung cancer.
• Hitler merged the roles of Chancellor and President, declaring himself Führer.
• The army and civil servants swore an oath of loyalty directly to him.
• Hitler was now Germany’s absolute ruler — a legal dictator.

Reasons Hitler Consolidated Power (1933–1934)
• Use of emergency powers after the Reichstag Fire.
• Legal manipulation through the Enabling Act.
• Destruction of trade unions and rival parties.
• Elimination of rivals in the SA and other political threats.
• Death of Hindenburg and loyalty oath of the army.
• Propaganda and terror reinforced Hitler’s authority and public support.

The Establishment of a Nazi Dictatorship
• By August 1934, Hitler had complete control over Germany’s government, army, and police.
• The Weimar Republic was destroyed from within by legal means and intimidation.
• Germany had become a totalitarian one-party state with no political opposition.

Timeline Summary – Depression to Dictatorship (1929–1934)

• 24 October 1929 – Wall Street Crash in the USA.
• 1930 – Brüning becomes Chancellor; austerity policies deepen the crisis.
• July 1930 – Article 48 used to bypass the Reichstag.
• 1930–1932 – Rapid rise in Nazi and Communist support.
• April 1932 – Hitler runs for President; loses to Hindenburg but gains national fame.
• July 1932 – Nazis become largest party with 230 seats.
• 30 January 1933 – Hitler appointed Chancellor.
• 27 February 1933 – Reichstag Fire; Communists blamed.
• 5 March 1933 – Nazi election gains strengthened.
• 23 March 1933 – Enabling Act passed; Hitler gains dictatorial powers.
• 2 May 1933 – Trade unions banned.
• 14 July 1933 – One-party state established.
• 30 June 1934 – Night of the Long Knives; Röhm and SA leaders killed.
• 2 August 1934 – Hindenburg dies; Hitler becomes Führer.