History, asked by ghanatherohit04, 1 year ago

Mention any two impacts of great depression of 1929 on Germany

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Answered by natassha
4

The economic situation in Germany briefly improved between 1924-1929. However, Germany in the 1920s remained politically and economically unstable. The Weimar democracy could not withstand the disastrous Great Depression of 1929. The disaster began in the United States of America, the leading economy in the world

Answered by Saifßàã
4
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The Great Depression had profound effects on American society. With no system of state welfare, the jobless were forced to rely on charity. ‘Breadlines’ were a common sight as thousands of desperate people queued to receive food handouts. Others scavenged for scraps in dustbins and rubbish heaps. Between 1929 and 1933 hundreds of Americans starved to death. The jobless often became homeless, with more than a million people evicted from their homes. In 1932 alone there were 23,000 suicides in the United States. There were knock-on effects around the world, with few developed nations spared at least some economic misery. Countries that relied on industrial or agricultural exports, like Britain and Australia, suffered the worst. British unemployment more than doubled to 2.5 million; in its northern industrial areas, the unemployment rate was as high as 70 per cent. In Australia, the demand for wool and food exports slumped, along with prices, wages and unemployment. By 1932, almost 30 per cent of Australian workers were without a job.

The impact on Weimar Germany was even more dire. Germans were not so much reliant on exports as they were on American loans, which had been propping up the Weimar economy since 1924. No further loans were issued from late 1929, while American financiers began to call in existing loans. Despite its rapid growth, the German economy was not equipped for this retraction of cash and capital. Banks struggled to provide money and credit; in 1931 there were runs on German and Austrian banks and several of them folded. In 1930 the US, the largest purcjiihaser of German industrial exports, put up tariff barriers to protect its own companies. German industrialists lost access to US markets and found credit almost impossible to obtain. Many industrial companies and factories either closed or shrank dramatically. By 1932 German industrial production was at 58 per cent of its 1928 levels. The effect of this decline was spiralling unemployment. By the end of 1929 around 1.5 million Germans were out of work; within a year this figure had more than doubled. By early 1933 unemployment in Germany had reached a staggering six million.



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