Section C: growth in Nazi support, 1929-32 

Effects of the Wall Street Crash 

1. The value of shares in the American stock market collapsed in October 1929. The money German banks had lost in their share investments panicked Germans into thinking their bank accounts would be wiped out. 

2. Banks like the German Civil Servant Bank went bust as so many people queued to withdraw their savings. In desperation both US and German banks started demanding loans paid to German businesses which lead to many cutting back production. 

3. This banking crash now led to unemployment as businesses started reducing costs by sacking workers.  

4. With less money in their pockets, this growing number of unemployed could afford to buy less, cutting business profits even further and leading to further unemployment.  

5. Unemployment rose from 1.3 million in September 1929 to over 6 million by the end of 1932. 

Impact of unemployment 

1. 40% of factory workers, 50% of those under 30 and 60% of university graduates were out of work by January 1933, when unemployment hit 6 million.  

2. Even those in work suffered from higher taxes and wages reduced by 1932 to 70% of their 1928 level. 

3. The unemployed could no longer afford their rent so homelessness increased with makeshift shanty towns.  

4. There was an increase of arrests for theft of 24% between 1929-32. 

5. By July 1932, the Nazi number of seats in the Reichstag rose from 12 to 230, the communists from 54 to 89. 

The failure of Weimar governments to deal with unemployment from 1929-Jan 1933 

1. The Grand Coalition government, in place since May 1928, collapsed in March 1930 over different views on how to deal with growing unemployment. 

2. A new government led by Heinrich Bruning, leader of the Centre Party, introduced higher taxes and time limits on benefits to reduce their cost. 

3. Right-wing parties opposed higher taxes while left-wing opposed reduced benefits so Bruning’s proposals were rejected by the Reichstag, leading to Bruning asking Hindenburg to use Article 48 to allow decrees passed by approval just of the President. This clearly undermined democracy.  

4. However, Bruning could not improve the economic situation and was forced to resign in May 1932. 

5. President Hindenburg would now act in an increasingly authoritarian manner, hiring and firing chancellors at his own discretion under Article 48 rather than respecting the results of elections. 

Growth of support for the Communist party 

1. Communist support grew from 10% in 1928 to 15% by 1932, an extra million voters making it the largest Communist Party in the world outside the Soviet Union. 

2. Most of their support came from the working classes who wanted to defend their jobs and wages against big business.  

3. However, this growth also helped the Nazis as they were increasingly seen as the only defence against Communism by a frightened middle and upper class who feared their status and wealth would disappear under a Communist government. 

Reasons for the growth in support for the Nazi Party 

1. The Weimar Republic seemed weak, and the appeal of a strong leader like Hitler became attractive. 

2. Nazi policies of offering a scapegoat (in the form of the Jewish people), and blaming Germany’s problems on the stab in the back and the Treaty of Versailles suddenly seemed a lot more relevant in a time of crisis. 

3. Hitler capitalised on the crisis with effective propaganda, using aeroplanes to speak in as many cities as possible. 

4. The uniformed SA also gave an appearance of organisation, but more importantly they were able to disrupt the campaigns of their rivals. The 400,000 stormtroopers outnumbered the Communists Red Front Fighters by 3 to 1 and the violence they caused at rival meetings added to the sense of chaos under the Weimar Republic. 

5. Hitler also won over businessmen who were increasingly convinced the Nazis were an effective defence against Communism. Wealthy businessmen like Benz and Krupp donated to the Party and Alfred Hugenberg, a newspaper owner, allowed Goebbels to use his newspapers for propaganda. 

6. The Nazis won some working class voters with promises of work and bread. 

7. They had more success with the middle classes who had lost savings, pensions and businesses after the Wall Street Crash and saw the Nazis as a defence against Communism. 

8. The Nazis won earlier support from farmers in 1928 when they promised to reverse their policy of confiscating private land, except if owned by Jewish people. The Nazis won 60% of the vote in some rural areas in 1930. 

9. For many young voters the Nazis seemed exciting and colourful.  

10. Some women were won over by the Nazi claim of being the best protection for the family. 

11. The main Nazi advantage, as reflected in their Party name, was that there was something for everyone, unlike the other parties, who mainly appealed to particular interest groups.