"Great Economic Depression of 1929-32 began in USA but it destroyed German Economy." How ?
Answers
The crashing of the United States stock market further put Germany in to an economic depression. The United States stock market crashed in 1929 because there was a widespread economic panic. This caused many of their citizens to withdraw their funds from banks quickly and this caused many banks to become bankrupt. After the stock market crashed all of the loans the United States gave out they needed it back quickly. Germany had borrowed loans from the United States. Germany’s Hjalmar Schacht had agreed to pay all the loans received from the United States, but they could not replenish it quickly.[4] This caused many Germans to loose their jobs and cause the unemployment to rise and their government to lose much of their money. The Weimar Republic was hit the hardest. To try and recover from the depression they tried passing welfare provisions.[5] Some welfare provisions that were passed under the Weimar Republic were the war victims’ benefit, which was passed in 1920. This gave war victims help if they needed it. In 1922 the Youth Welfare Act was passed. This act is still around today and it continues to serve as the basic program for all youth related programs. In 1923 the employees and employers financed the unemployment relief after it was consolidated into a regular assistance program. In 1927 a national unemployment insurance program was established.[6] These programs did help out the economy for a while. Once the Great Depression started to settle in all of these welfare provision were cut back. This reduced wages and meant for a smaller contribution to social insurance and assistance programs. Most of these programs were on the brink of bankruptcy.[7] This made many people dissatisfied and so the Nazi Party rose to power.
Answer:
The great economic depression that began in US in 1929, has a catastrophic impact worldwide.
The economic depression impacted largely those countries which were heavily dependent on US economy.
Germany after the Ist World was sought short term loans from US for its recovery and indeed was totally dependent on it.
After the depression struck US, there was a withdrawal of US loans to other countries including Germany.
This impacted Germany as it became the worst suffered and aggrevated its already existing economic problems.There was unemployement, fall in German's currency, rise in crime rate creating great disillusionment among the masses.