Describe any three effects of the great economic depression (1929-1932)on Germany.
Answers
Answer:
The Great Depression was a global economic slump that erupted in late 1929 and lasted for several years. It began as an American crisis, specifically a huge stock market crash, but had knock-on effects around the world. The Great Depression was severely felt in Germany, where it caused widespread unemployment, starvation and misery. These conditions were instrumental in the rise to power of Adolf Hitler and the National Socialists (NSDAP).
Background
The 1920s had been a boom decade for the United States economy. American companies tallied up record production figures, ever-increasing sales and millions of dollars profit. These profits meant high dividends and increasing share prices. This, in turn, encouraged growing investment in shares.
In 1927 and 1928, the Wall Street Stock Exchange became the epicentre of a new gold rush, as thousands of Americans rushed to invest in the booming share market. The rapid returns on investment of the 1920s fuelled reckless acquisitions. Some investors borrowed heavily, mortgaged homes or sold whatever they had to purchase shares.