Causes Of The Great Depression In America

The Wall Street Crash in America caused the Great Depression in 1929, sending the USA into a disastrous economic depression. Countries all over the world felt the effect of this, especially Germany as American businessmen and bankers lost large sums of money and so asked the German banks to return loans under the Dawes plan, sending them into economic collapse. Consequently the German people leant towards extreme parties including the Nazis to restore Germany, raising their profile. Furthermore the army was no longer able to control these parties and due to pressure from the public as well as the belief that Hitler could be controlled, appointed him Chancellor in 1933.

The stock market crash in America in 1929 leading to the Great Depression
At this time there were just over 3 million Germans who were unemployed and the Nazis received 107 seats in the Reichstag. However, as the depression worsened many more workers were made redundant as businesses crashed and laid off workers who then, in turn, had no money to spend. There is a direct correlation between unemployment levels and the number of seats won by the Nazis. In the next election (July 1932) the Nazis won 230 seats and the number of unemployed was 5.5 million. Bruning cut government spending in order to pay reparations and loans under the Dawes Plan to America (to be paid back due to the Wall Street Crash). Therefore welfare benefits were cut in 1930 so the unemployed received less money to support their families. Additionally, the economy was not recovering in the early 1930s and so these people suffered, but could not see any change in the economic state of Germany. These elections showed that the German population felt an alternative to democracy would have greater benefit to the country because in 1932, the Communists and the Nazis together had 310 seats out of 608 seats, a majority. As they were opposed the Weimar system, there was no way that Hindenburg could form a coalition and run the country unless he included one of these major parties. Furthermore, Hitler was able to use fear of the Communists in order to gain votes through negative cohesion. This occurred as people who were better than averagely
The Wall Street Crash in 1929 hit Germany harsher than other countries due to the reparations to the allies and the recall of loans under the Dawes Plan. This meant that many Germans leant towards extremist parties such as the Nazis who offered an escape route. They also seemed sufficiently organised due to the uniforms and regular marches they displayed to deal with the increasing disorder, as well as showing the necessary desire to save Germany. However, other factors played major roles in Hitler coming to power, these included the propaganda the Nazis used and the slogans used by Hitler. Throughout history, Germans had favoured strong leadership as shown by the Kaiser who had lead Germany with reasonable success using an ‘iron fist’. Hitler’s outstanding oratory skills and modern propaganda raised the face of the Nazi Party. On the other hand, the Weimar Government had suffered many disasters such as the occupation of the Ruhr and hyperinflation. This also enticed people to support the Nazis who felt that they had been ‘stabbed in the back’ after the politicians who went on to serve in the Weimar Government signed the Treaty of Versailles. Furthermore the political situation in Germany was highly fragmented with many political parties with extreme ideological divisions meaning they did not work together and this