Great Depression (Hai Swee)

Germany's Great Depression in 1929

Background information of the great depression:The great depression was a long and extensive economic crisis which affected most of the developed nations then in early and mid 1930s.

What caused the great depression?:The great depression was triggered by a stock market crash in New York City in 1929 and soon it spread towards other countries and crippling the economies of other countries from around the world.The great depression was particularly severe on for Germany as it enjoy artificial prosperity as it had loan from the USA. With the lack of funds to pay for economic development, many factories and industries shut down and many businesses were declared bankrupt and the rate of unemployment increased.

Children seen playing with worthless bank notes in Germany.
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Paul warburg,a banker,issued a warning that unrestrained speculation were to spread too far,the ultimate collapse would bring a great depression involving the entire country.

However,people disregarded Paul's words and thought he was a party pooper and said that everything was going to be fine.

On the 24th day of October 1929, "black Thursday" was the beginning of the stock market crash. Thomas Lamont,a banker,had a emergency meeting with the other top bankers in the city including the vice-president of the stock market to figure out what they could do to support the plunging stock market.They had a plan where they put together $250 million dollars to support a key list of stocks and it worked,stocks started going up again and people thought that the worst was over.

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The whole world was hit hard by the economic crisis but Germany suffered the most from it as Germany mainly relied their economy by loans and investments from the USA.Within a night,all the rich people from Germany became poor.Millions of people became homeless,starvation starts to set in and eventually death as USA demanded that Germany is to return the loans that they had borrowed under the Dawes Plan and Young Plan.

Unemployment in Germany during the great depression
sourced from: http://theweek.com/articles/442096/chilling-irony-german-austerity

 In 1932, about 5 million Germans were unemployed. Many blamed the Weimar Republic. The dire conditions of the 1930s great depression caused many German voters to abandon mainstream political parties and look for more radical parities such as Adolf Hitler and the Nazi Party as they were the only ones left whom the Germans had high hopes that they would make Germany strong again and also Hitler made promises to the Germans that he would do his best to end the unemployment. 

Germans did not have trust in the Weimer goverment and choose more radical parties like the Nazi Party
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Reference from:http://alphahistory.com/nazigermany/the-great-depression/