It was not only one or two parts of society which were affected, but mostly every social class. At the time the stock market crashed, Germany was just developing its economy, since Germany lost most of their industry to the Allies in the Treaty of Versailles. The Great Depression in 1929 was a huge contribution for Hitler’s rise to power. As most people lost their jobs and the unemployment increased disastrous, the German inhabitants did no longer believe in the Weimar Republic. Money was not valuable anymore and many Germans suffered from poverty and illness.
When the businessmen sold out all their stocks and shares, the economy line of Untied States declined. The bubble economy of United States bursts. The Wall Street Crash hit Germany particularly badly because the loans that were lent to Germany were recalled in. The loans that were called in were particularly the lifeblood of Germany industry. Once again, Germany went into the situation that was a mess.
The failure of the economy, extreme nationalism and the fragile government of Germany in the 1920’s and 30’s could also be seen as the reason for Hitler’s success(Wepman 98). The end of W.W.I left Germany in economic debt, suffering to survive. The Treaty of Versailles blamed Germany for the war and required them to pay for all the reparations. With many unemployed and homeless, the country was in economic ruins(Heck 120). To try and end their suffering, the German government printed more money, which in turn caused inflation and more problems.
Many Americans were struggling to survive in this time with prices rising, incomes lowering, and the unemployment rates rising. All money that was saved up in banks including all life savings were lost and that left people demoralized. This effect even went across the ocean affecting Germany. The loans going to Germany’s government became weak because they were unable to fix the poverty and destruction that was happening. This weakened government made it easier for Hitler to go into rule because the Germans longed for a president who could fix this issue.
After America fell into the depression they recalled their loans making many German banks to close their doors and the whole system to collapse. Not being able to pay off their reparations to the Allies due to Germany and Austria being in the debt themselves. Along with Germany the United States started to remove money from Europe, leading to the selling for European monies and collapse of European banks. (http://www.english.uiuc.edu/maps/depression/about.htm), (http://www.kwaves.com/kond_analysis.htm) As the countries loss money and began to fall into debt the unemployment began to rise.
Germany's Rise From Bankruptcy to a Superpower Between 1929-1939 1929 was a hard time for Germany. Hyper inflation had taken control, the Reich mark was worth nothing, and they were literally bankrupt. The reason for their bankruptcy was due to the economic collapse of America. After world war one Germany had been made to pay large reparations to France for the damage they had caused. Germany had problems paying these large reparations and called in America for help.
The reparations figure of £6600 million put Germany into an economic crisis causing the Depression and hyperinflation. The people were furious with the ‘diktat’, and claimed the new Weimar government were to blame for the ‘stab in the back’ which put Germany into a political crisis. People soon came to realise the Treaty as a mistake, and sympathised with Germany because of the harsh Treaty. This aided Hitler in many ways. Firstly, due to political and economic crises, extremists such as Hitler were given more of an opportunity to succeed.
Germany's economy after World War I had been built on foreign loans, especially loans from the United States, and on world trade, which was also based on a system of loans and notes of credit. As a result, the fate of Germany (and of other countries as well) was tied up with that of the United States. When world trade and commerce collapsed, the German economy collapsed with it. Now millions of Germans were out of work. The middle class saw its savings and investments disappear.
The Rise of Hitler During the 1920's and early 1930's Germany was trying to recover from World War. It had to pay reparations and try to rebuild the economy from bankruptcy. It was because of the weaknesses of the economy and the Weimar Government, together with the growing popularity of the Nazis that Hitler was able to become Chancellor. After the First World War, Germany was forced to establish a democratic government based on proportional representation. The main problems with the German system were that no one party had absolute control.
Therefore he took over at a time when Germany looked economically weak, bitter and still blaming America and Europe for their financial problems. The reparations system had faltered due to the Wall Street Crash and America could no longer provide the loans. Hitler knew he was under a lot of pressure to make successful changes within Germany, although he also knew German people were in a vulnerable position and in search of an answer to their problems; to gain support Hitler had to tell them what they wanted to hear. From they changes to the economy Hitler decided to make there were several segments of German people that benefited or lost out. In some cases different areas would benefit as well as lose out from Hitler’s seize of power on the economical front.