The Great Depression

1. Learning Objectives:
• To understand how Germany was affected by the Wall Street
Crash of 1929
• Examine how did the Wall Street Crash benefit the Nazi Party
The Great Depression

2. Recap: How did the Nazi Party develop
and organise its ideas up to1929?
‘Hitler was no more
than the leader of a
small splinter party,
scarcely known
outside of Bavaria and
very likely doomed to
remain forever on the
fringe of political life’
Historian, 1929
How much do you agree with the
above statement? What evidence
have you found to support your
argument?

3. The Lean years of the
Nazi’s
LO: To suggest
reasons for the
Nazi Party’s poor
performance in
elections, 1924-
1929.
Since 1923 inflation had eased, employment
had increased and the public were better off.
This was largely due to the work of Gustav
Stresemann, who was popular both in
Germany and abroad.
In 1925 Hindenburg, the well-respected 78
year old ex-field marshal of the German
army, became president. His reputation
restored confidence in the Weimar Republic.
As a result of all of the above, voters
supported the Weimar government and the
moderate parties instead of voting for
extremists like the Nazis.

4. The Great Depression
LO: To
understand how
Germany was
affected by the
Wall Street Crash
of 1929
Why do you think the Golden
Years officially came to an end
in 1929?
Shortly before Gustav Stresemann died in
1929 he stated:
“The economic position is only
flourishing on the surface. Germany is in
fact dancing on a volcano. If the short-
term credits are called in, a large section
of our economy would collapse.”
What can you learn from the source
about the German economy in 1929?

5. Write as many words/phrases as you can to describe the event
these pictures are illustrating
The Great Depression
LO: To
understand how
Germany was
affected by the
Wall Street Crash
of 1929

6. The Great Depression
LO: To
understand how
Germany was
affected by the
Wall Street Crash
of 1929
• In October 1929, share prices began
to fall on the Wall Street Stock
exchange
• Falling shares meant people’s
investments fell in value
• Worried about losing money, people
rushed to sell their shares before their
value fell any further
• On ‘Black Thursday’, 24 October
1929, 13 million shares were sold
• This panic selling made things worse,
and sent prices even lower
• Shares worth $20,000 in the morning
were worth $1000 by the end of the
day’s trading
• Within a week, investors had lost over
$4000million

7. • Bankers and Financiers in the USA recalled the
loans made to Germany under the Dawes Plan in
1924 which left Germany with no money.
• International trade decreased rapidly, which meant
Germany could not get any funds from exports.
• As a result, Germany did not need to produce so
much, so factories closed and employers sacked
workers.
• This also affected German farmers, who were not in
a good position to start with.
The Great Depression: Its
affects on Germany
LO: To
understand how
Germany was
affected by the
Wall Street Crash
of 1929

8. The Great Depression
LO: To
understand how
Germany was
affected by the
Wall Street Crash
of 1929
Using your text books (pages 46-49)
and the internet.
In pairs develop a role play
conversation that you might have with
one of the people you have read
about in the sources.
Your conversation may focus on:
• What life is like?
• How they have been effected?
• Who do they hold responsible for
their wows and why?
You will role play your conversation at
the beginning of next lesson.

9. In pairs, label yourselves A and B
Student A
• You have one minute
to explain to your
partner…
• What was the Wall
Street Crash?
• How did it happen?
• How did it affect
America?
Student B
• You have one minute
to explain to your
partner…
• How did the American
depression affect
Germany?
• Explain carefully how
it spread to Germany.
The Great Depression
LO: To
understand how
Germany was
affected by the
Wall Street Crash
of 1929

10. Social
Economic
Political
For each category, give evidence of
how Germany was affected by the
Wall Street Crash
Can you link together the problems?
Link…
The Great Depression
LO: Examine
how did the Wall
Street Crash
benefit the Nazi
Party

11. The Great Depression
LO: To
understand how
Germany was
affected by the
Wall Street Crash
of 1929
Source C
Four private armies, with knives, revolvers and knuckle-dusters rampaged through the towns- the
SA of the Nazis, the Red Front of the KPD, the Sozi of the SPD and the Stalhelmer. The
Reichswehr (the army) were nowhere.
Kurt Ludecke, an eyewitness, reporting in 1930
Using the sources below and what you have learnt so far explain the impact of the
great depression on Germany?
Source A
September 1928 650,000 unemployed
September 1929 1,320,000 unemployed
September 1930 3,000,000 unemployed
September 1931 4,350,000 unemployed
September 1932 5,102,000 unemployed
January 1933 6,100,000 unemployed
Source B

12. Many people within Germany were said to be ‘doubly bitter’ with the
Weimar Government. This was the second time that the government had
thrown Germany into large scale economic depression, the first time being
during the period of hyperinflation in 1923
How far do you think that the German
Government can be blamed for the economic
depression that hit Germany after the Wall
Street Crash?
The Great Depression
LO: To
understand how
Germany was
affected by the
Wall Street Crash
of 1929

13. 1. Unpopular economic policies
o Scared of past mistakes – Hyperinflation
o Raised taxes, cut wages and reduced unemployment
benefits
2. Presidential rule
o Social democrats left the coalition
o Chancellor Bruning fell back on Article 48
3. The rise of extremism
o Politics now mattered to everyone
o Increase in political violence
LO: To
understand how
Germany was
affected by the
Wall Street Crash
of 1929
The Great Depression: Effects on
the Weimar Republic
How did the Depression weaken the Weimar
government?

14. Group How were they
affected?
Why were they
affected?
Who will they
blame?
Businessmen
Factory
workers
Farm workers
Young people
Middle class
The Great Depression: Effects
on different people
LO: To
understand how
Germany was
affected by the
Wall Street Crash
of 1929

15. Businessmen saw their businesses close. People had less money to
spend on goods so demand fell, leading to profits also falling. Businesses
had to either sack people or shut down.
Young People could not find work. In 1933 over half of all Germans
between the ages of 16 and 30 were unemployed. Sixty per cent of new
university graduates could not get a job.
Farmers had not done well in the 1920s. Agriculture in Germany had been
suffering for a number of years. Prices had been falling since 1925. In the
1930s farmers slipped further into debt. Farmers sold their land or
struggled in poverty.
As businesses closed, unemployment rose. 40% of all Factory Workers
were unemployed by 1932. At the same time the government cut
unemployment benefit to save money. For the unemployed this was a time
of extreme poverty.
Middle classes lost their businesses, savings and investments. Many lost
money as the banks collapsed whilst others had to shut down their
businesses as their loans were recalled. They also suffered when Bruning
put up taxes.

16. Exam Question
d) Study the source below and then answer the question that
follows.
Source: From a modern textbook
In 1920, the Nazi Party announced a 25 point programme
and support for the party steadily increased. The
following year Hitler set up the Sturmabteilung (SA). The
Munich Putsch of 1923 led to Hitler’s arrest and
imprisonment and a change in his tactics.
Use the source, and your own knowledge, to explain how
the Nazi Party changed in the years 1920–28.
(10 Marks)