Describe any three effects of great depression in germany
Answers
Great depression in Germany during late 1920s and early 1930s:
Severe unemployment rate rose up to and more than 20%. Weimer government printed more currency, thinking that it will solve deficit problems. But the inflation became hyperinflation. Living standards became terribly low. The economic recovery became impossible. Weimar Republic faced its worst political and economic situation.
Severe debt and financial crisis resulted. America stopped its financial aid to Germany due to its own Great Depression. Consequently many people withdrew their money from stock markets. Government could not control the economy.
Germans could not pay back its war reparation dues to the international allies. The Treaty of Versailles was a severe punishment to Germans. Their rich territories were taken away from them.
Lower pricing and supply decisions made by other European countries created a problem for Germany and its products. So Germany's manufacturers could not sell their products in Europe and elsewhere. So Germany's industrial and agricultural production fell badly.
The various political and economic measures taken by government failed. Reichstag was dissolved. General elections were held. Nazi party (NSDAP) and communists rose higher. A coalition was formed with other parties. Nazi Germany began in 1933 with Hitler swearing in as the Chancellor.
Psychologically Germans were depressed. They could have won the World War 1. But they lost. All happenings in Germany and treatment of Germans by other countries made them gradually very patriotic.
Answer:
The great depression had a terrible effect on Germany. The effects of this decline was spiralling unemployment. By the end of 1929 around 1.5 million Germans were out of work. The Great depression affected all capitalists economic in the world.