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the Great Depression
- The Wall Street Crash
- October 1929 - share prices
began to fall on Wall Street stock
exchange in New York, this meant
people's investments fell in value
- People rushed to sell
shares before they fell
further
- panic sent selling prices
even lower
- panic sent selling prices
even lower
- October 1929 - share prices
began to fall on Wall Street stock
exchange in New York, this meant
people's investments fell in value
- Economic Effects
- Banks were huge investers - suffered huge losses -
people rushed to get their money back, so some
banks ran out of cash
- German industrial output fell
and unemployment rose
- Worldwide depression was a disaster for export
industries but high unemployment meant that
domestic demand for goods fell too. Unemployment
rose further.
- Banks were huge investers - suffered huge losses -
people rushed to get their money back, so some
banks ran out of cash
- Social and political effects
- The middle classes lost
savings, their companies or
their homes
- Workers became
unemployed
- 1930 to 1932 - Heinrich
Bruning was chancellor, he
proposed:
- Raising taxes to pay the cost of
unemployment benefit
- This pleased no one
- Right-wing & middle classes
and wealthy opposed higher
taxes
- Left-wing & working
classes opposed lower
benefits
- Bruning lost control of Reichstag, the
economy and the streets. He resigned in
1932, leaving a dangerous power vacuum for
a new leader to step into
- Right-wing & middle classes
and wealthy opposed higher
taxes
- This pleased no one
- Reducing unemployment benefit
to make payments more
affordable
- Raising taxes to pay the cost of
unemployment benefit
- The middle classes lost
savings, their companies or
their homes
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