Question -Describe the three effects of the great economic crisis of G...
Economic Depression and its impact on Germany
1. The years between 1924 and 1928 USA gave short-term loans to Germany. This support was withdrawn when the Wall Street Exchange crashed in 1929 in the USA.
2. Fearing a fall in prices, people made frantic efforts to sell their shares. On one single day, 24 October, 13 million shares were sold. This was the start of the Great Economic Depression in the USA.
3. The German economy was the worst hit by the economic crisis. By 1932, industrial production was reduced to 40 per cent, Workers lost their jobs, and number of unemployed touched an unprecedented 6 million.
4. Germans hung placards around their necks saying, Willing to do any work.
5. Unemployed youths took to criminal activities and total despair became common place. The middle classes, especially salaried employees and pensioners, saw their savings diminish when the currency lost its value.
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Question -Describe the three effects of the great economic crisis of G...
The great economic crisis of Germany, also known as the Great Depression, had significant effects on the country. It began with the Wall Street Crash of 1929 in the United States and quickly spread across the globe, impacting economies worldwide. Germany, being a major industrial power and heavily dependent on foreign trade, was profoundly affected by the crisis.
1. Economic Contraction:
The Great Depression caused a severe economic contraction in Germany. The country experienced a sharp decline in industrial production, leading to widespread unemployment and a sharp decrease in consumer demand. Many businesses were forced to close, resulting in a significant loss of jobs. The unemployment rate skyrocketed, reaching approximately 30% by 1932. This economic downturn had a profound impact on the daily lives of German citizens, causing widespread poverty and hardship.
2. Political Instability:
The economic crisis in Germany contributed to increased political instability. As people struggled to make ends meet, they became disillusioned with the government's ability to address the crisis effectively. This led to a loss of faith in the democratic system, creating an atmosphere ripe for radical political movements. Extremist parties, such as the Nazi Party led by Adolf Hitler, gained popularity by promising to restore economic stability and national pride. The political polarization and rise of these radical ideologies ultimately led to the collapse of democracy in Germany and the rise of the Nazi regime.
3. International Relations:
The economic crisis in Germany also had a significant impact on international relations. As the country faced mounting economic difficulties, it struggled to meet its reparation obligations from World War I. This strained Germany's relationships with other countries, particularly France and the United Kingdom. The inability to pay reparations exacerbated tensions and contributed to a sense of injustice among the German population, further fueling nationalist and extremist sentiments. Additionally, the economic crisis in Germany had a ripple effect on the global economy, as the country was a major trading partner for many nations. The decline in German imports and investments had a negative impact on other countries, exacerbating the economic downturn worldwide.
In conclusion, the great economic crisis of Germany had far-reaching effects. It caused a severe economic contraction, leading to widespread unemployment and poverty. The crisis also contributed to political instability and the rise of radical ideologies, ultimately leading to the collapse of democracy and the ascent of the Nazi regime. Furthermore, it strained Germany's international relations and had a negative impact on the global economy.
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