How significant was the impact of the Great Depression on Germany from 1929-1933?, High school final essays of History

Download How significant was the impact of the Great Depression on Germany from 1929-1933? and more High school final essays History in PDF only on Docsity! How significant was the impact of the Great Depression on Germany from 1929-1933? Word Count: 1989 words Candidate number: 506 Bankruptcy of the Danat-Bank (Darmstädter and Nationalbank). A crowd has gathered in front of a branch on Belle-Alliance-Platz in Berlin. July 1931. akg-images / TT News Agency / SVT https://www.akg-images.com/archive/Germany-%E2%80%93-Great-Depression-2UMEBMBY97E6D.html Downloaded 03/02/22 Many historical views on the Depression often believe that it was significant because it caused bankruptcies and nationwide unemployment, resulting in the rise of Nazis. However, the reality is much more complex, with a multitude of pre-existing problems such as the global trend towards rationalization and the backlash against the Treaty of Versailles. Thus, the significance of the Depression will be examined through three areas: the economy, society, and politics. My criteria takes into account how many people were influenced as well as how deeply they were affected in those areas. Ultimately, I will argue that the Great Depression is still significant because although it is not the source of Germany’s problems, it is a focal point that amplified and combined all problems. The Great Depression was the product of the Wall Street Crash in October 1929. It started when the New York Stock Exchange collapsed, and its effect entailed numerous countries globally, in which Germany was arguably the most affected of all. It was at the time when Germany was starting to recover from the repercussions of the First World War - the time known as the “The Golden Age.” From 1923 to 1929, the economy skyrocketed and culture flourished in Germany under the reforms performed by Gustav Stresemann and Charles Dawes. Under The Dawes Plan, the United States gave massive loans to Germany to help rebuild its industry and economy. When the Great Depression took place, the loans given to Germany were called back, which instantly stagnated its economy, and consequently the unemployment rate soared, leading to a vicious cycle of economic deterioration. Everyone was affected by the Depression in one way or another: businessmen went bankrupt, farmers were hit by high-interest rates and falling agricultural prices, factory workers were laid off, pensions were cut, and children suffered and died from malnutrition. The impacts were not only deep, but it also permeated into every aspect of Germany. The most direct impact of the Great Depression can be seen in the economy. Foreign investors began withdrawing the loans at the start of the Depression. However, most investors had to wait until the investment agreement ended as many agreements lasted for two or three years. This was why the German economy did not immediately fail in 1929, as the real crisis broke out in late 1930. Suppose that the crisis broke out at once, the government may have paid more attention to stimulate the economy. The insidious approach meant that once the crisis broke out, it would be very hard to get the economy back on track. As a result, five major banks went bankrupt in the summer of 1931. By 1932, German industrial production had dropped by 42 per cent compared to 1928 and six million Germans were unemployed, 1 three months, negotiated with the allied powers for more agreeable reparations, and allowed Germany to join the League of Nations. If Stresemann had not died, he would have possibly remedied the situation. Hence the death of Stresemann could only have enhanced the effects of the Depression, and even if the Depression did not happen, it would have still been a devastating blow to Germany. It could be argued that the Depression was not the main cause of the unemployment of workers, as it could also be rationalization. The improvements in efficiency cost at the expense of employment. For example, the rationalized industrial mines in the Ruhr region saw a drop in the mining workforce by 33 per cent between 1922 and 1928. “It is partly for this reason that in mid-1928 there were already 1.3 million unemployed Germans,” wrote Benjamin Carter Hett in his book The Death of Democracy . For the farmers, they had to improve their productivity to stay competitive, so they borrowed heavily to buy new agricultural machines. Many went bankrupt because of this and also caused the Landvolks protest (Landvolkbewegung). Therefore, the impact of the Depression was only partially the cause of unemployment, although an increase from 1.3 to 6 million was nevertheless significant. It could also be argued that the Depression was just a trigger that set off the simmering hatred towards the Treaty of Versailles. Stresemann said in his Nobel Peace Prize speech that “...to believe that the work of half a century has brought one to the summit, and then to plunge down from that summit – that is even more painful to the human soul.” The spiritual despair that the Germans have gone through is the true fertile soil for the extremists, and it is at a much greater scale than the economic incentive. On the contrary, if the Depression did not happen, it would be likely for the hatred towards the Treaty to subside. In the same speech, Stresemann said that “the overwhelming majority of the German people are united in a desire for peace and reconciliation.” Prior to the Depression, Germany’s recovery culminated at an unprecedented height. Germany’s industrial production was a third more than before the war, making it the second-highest producing industrial nation. It was also when the most significant discoveries of modern science took place: Einstein, Heisenberg, Schrödinger and Planck were all Nobel Prize nominees who worked in Germany at the time. It was evident that most people were putting down the hatred of the past and were looking forward to a new Germany. Therefore it could be concluded that the cause of the rise of 4 extremism was lurking long before the Depression, and although the radical thinkings were trending to subside, the Great Depression brought it to a new height. I have discussed the impacts of the Great Depression on the economy, society and politics of Germany. It is evident that the instability of the economy, the falling support for the Weimar Republic, and the Nazi’s political successes were not started by the Depression. The problems had been simmering since the creation of Weimar, but the Depression converged the seemingly unrelated trends together. The impact lay not in how many problems it created; it lay in its ability to converge each problem into one pivotal blow. This does not mean it was not significant though, because without the Depression the problems would have settled down with time. In the 21st century, the impact of the Depression is long gone, but the ramifications of Adolf Hitler and the Nazi Party still last; World War II and the persecution of the Jews will be remembered. How much of this was caused by the Depression? There is no right answer. But I do know that Germany had transformed from prosperity to deterioration, from internationalism to chauvinism and from democracy to dictatorship under the impact of the Great Depression. This is why the impact of the Great Depression on Germany was significant. 5 Bibliography: 1. https://www.nobelprize.org/prizes/peace/1926/stresemann/lecture/ 2. https://www.bbc.co.uk/bitesize/guides/zcfxcwx/revision/2 3. https://www.bbc.co.uk/bitesize/guides/zpvhk7h/revision/1 4. https://alphahistory.com/weimarrepublic/golden-age-of-weimar/ 5. https://alphahistory.com/weimarrepublic/great-depression/ 6. https://en.wikipedia.org/wiki/History_of_the_Ruhr#First_half_of_the_20th_century_(to_1945 ) 7. https://www.tutor2u.net/history/reference/free-revision-guide-for-edexcel-gcse-history-weima r-nazi-germany-1918-39 8. https://encyclopedia.ushmm.org/content/en/article/the-great-depression 9. https://www.thegreatcoursesdaily.com/the-nazis-and-the-great-depression/ 10. https://www.youtube.com/watch?v=Ojo8-GhhQcA - Economic Depression and Dictators: Crash Course European History #37 - Crash Course - John Green 11. https://www.youtube.com/watch?v=4i92U0-KT60 - The impact of the Depression on Germany - Mr Allsop History Clips 12. The Death of Democracy: Hitler's Rise to Power and the Downfall of the Weimar Republic, by Benjamin Carter Hett 6