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Describe the impact of economy depression of Germany

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Answered by Anonymous
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1.By the end of 1928 Weimar Republic's economy was heavily dependent on US Banks for repayment of their loans. As Wall Street fell most of the US Banks were forced to end their loaning scheme to the then ruling party.

2.Instead of leaving Weimar's economy to its state to let it come up on its own he he enacted a draconian policy of deflation, drastically cutting state expenditure.

3.Among other measures, he completely halted all public grants to the  obligatory unemployment insurance introduced in 1927, resulting in  workers making higher contributions and fewer benefits for the  unemployed. Benefits for the sick, invalid and pensioners were also  reduced sharply.This lead to great food shortage and people were forced to starve. Bread and soup were considered as complete food due to shortage of every other food resource.

4.The unemployment rate reached nearly 30% in 1932, bolstering support for  the Nazi (NSDAP) and Communist (KPD) parties, which both rose in the  years following the crash to altogether possess a Reichstag majority  following the general election in July 1932

5.Hitler comes to power.

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