Impacts of the Wall Street Crash-1929

Economical
1. Banks were also big investors and lost lots of money
  1. People feared they would lose their money
    1. Middle class rushed to get savings back --> banks ran out of money
2. Banks needed back money they had loaned to businesses
  1. Loss of money led to companies reducing operations or closing
    1. Industrial output fell and unemployment rose
3. Banks needed to print more money to compensate for loss
  1. Hyperinflation
Political
1. Chancellor Brüning's proposals ( increase taxes +reduce unemployment benefits) were very unpopular
  1. Coaltition govr. after Stressmann's death collapsed in 1930 and 1933
    1. Chancellor could only rule with useless decrees --> no solution to problems
2. Support of extremist groups like the Nazis and Communists grew
Social
1. Middle class lost their savings as money was de-valued
  1. Some lost their companies or their homes
2. Unemployment rose from 1.3 million in Sept. 1929 to 6.0 million in Jan. 1933
3. Unemployed roamed the streets: chaos and disorder
  1. Some joined the private armies of political groups (ex:SA)
What?
1. October 1929: Share prices fell
  1. USA had to take back 800 million marks from Dawes Plan

Resource summary

	Created by g-jacqmin over 8 years ago