Section 3: The collapse of democracy, 1928-33
The impact of the Depression of 1929
The appeal of Nazism and communism
The appointment of Hitler as Chancellor
The establishment of the Nazi dictatorship, January-March 1933
Practice exam questions
‘The collapse of the Grand Coalition in March 1930 was caused by the economic depression, an event
which was outside Germany’s control’. Assess the validity of this view.
‘The impact of the Great Depression was the prime reason for the emergence of the Nazis as a mass
movement between 1929 and 1932’. Assess the validity of this view.
‘Nazi ideology was the main reason for the success of the Nazi movement in the period 1929-1932’.
Assess the validity of this view.
‘Hitler’s leadership was the main reason why the Nazis emerged as a mass movement by 1932’.
Explain why you agree or disagree with this statement.
‘The failure of mainstream politicians in the period 1929-32 led to the emergence of the Nazis as a
mass movement.’ How far do you agree with this view?
‘Hitler became Chancellor in January 1933 due to the failure of Weimar democracy.’ How far do you
agree with this statement?
‘The success of Weimar democracy during the ‘Golden Years’ was the main reason why the Nazi Party
was unable to become a mass movement prior to 1928’. Assess the validity of this view.
‘Nazi consolidation of power in 1933 was primarily due to their use of violence and terror.’ Assess the
validity of this statement.
‘The popularity of the Nazi Party was the main reason for Hitler’s appointment as Chancellor in January
1933’. Explain why you either agree or disagree with this statement.
‘Hitler became Chancellor in January 1933 mainly as the result of “backstairs intrigue”.’ Explain why
you agree and disagree with this view.
‘Nazi consolidation of power in 1933 was primarily due to the miscalculations of the existing elites.’
Explain why you either agree or disagree with this statement.
‘The failure of the Weimar Republic by 1933 was due to the weaknesses of its constitution.’ Assess the
validity of this view.
,The impact of the Depression of 1929
The collapse of the German economy in 1929 and the growth of mass unemployment during the
depression.
The social impact of the Depression on Germans.
The political consequences of the Depression, including elections, governments and policies.
The economic impact
On 24th October 1929, the New York Stock exchange experienced its worst ever fall in share prices in an event
that became known as ‘Black Thursday’. This was followed by another collapse the following Tuesday, on 29th
October.
On that one day alone, the value of the largest American companies fell by 10 billion dollars.
Overnight, millionaires lost their fortunes and many smaller investors lost all their savings.
Many companies went bankrupt, workers lost their jobs, and banks stopped lending and called in their
existing loans.
This was the start of a prolonged depression, which spread from the USA around the world. For Germany, the
Wall Street Crash had a profound impact on its economy, its society and its political system.
The German economy had been stagnating since 1928 as investment decreased.
Germany’s economic recovery in the years 1924-28 had been largely funded by American loans but, in
the aftermath of the Wall Street Crash, those loans dried up.
The American banks that had lent money to Germany on short-term loans demanded immediate
repayment.
The USA had also been the largest overseas market for German manufactured goods in the USA and
Germany’s export trade declined rapidly.
Between 1929 and 1932, Germany’s export trade declined by 61% and its industrial production fell by
58% of its 1928 level.
So, at a time when the German economy needed more investment to stimulate the economy, money was
being withdrawn. The result was that the German economy entered a deep depression.
The depression affected other countries as well, but Germany suffered a greater fall in industrial production
than other European countries. In Britain, for example, the decline in industrial production between 1929 and
1932 was 11%.
As Germany’s foreign trade collapsed and prices fell, many companies had no alternative but to declare
themselves bankrupt and make their workers redundant.
Even those companies that survived had to reduce their workforces and cut the hours and wages of
those workers who continued working.
Banks also began to get into difficulties as customers withdrew their money and outstanding loans
weren’t repaid.
Following the collapse of an Austrian bank in May 1931, the German banking system was plunged into crisis.
In July 1931, the government closed the banks and the stock exchange to provide the financial system
with some breathing space, but these measures only gave temporary respite.
The Depression deepened, became more prolonged and economic conditions for millions of Germans
became more desperate.
Unemployment increased.
By 1932, about 1/3 of all German workers were registered as unemployed.
These official figures did not, however, reflect the true scale of unemployment since they only recorded
those who registered as unemployed. Many redundant workers, especially women, didn’t register and
so weren’t counted.
It has been estimated that in January 1933, the true number of unemployed was about 8 million.
, The impact of the Depression fell very heavily on the main industrial areas, such as the Ruhr, Silesia
and the main port cities such as Hamburg.
White collar workers were also badly hit. In the civil service, there were severe cuts in the workforce
and reductions in the salaries of those who remained.
Farming was also very badly hit by the Depression. Farmers had struggles even during the so-called
‘golden age’ between 1924-28, but the Depression pushed many of them into serious difficulty.
Prices collapsed, exports of agricultural produce decline and sales of food fell as Germans had less
money to spend.
Many more farmers were forced to give up their farms as the banks demanded repayment of loans.
Unemployment spread to the countryside as farm labourers lost their jobs.
The social impact
Increasing poverty
Mass unemployment had a highly corrosive effect on German society.
Although the WR had a well-developed system of unemployment and welfare benefits, the costs very
quickly overwhelmed the welfare budget, and from 1930, there were moves to limit the amounts of
benefits being paid.
The unemployed were only entitles to state benefits for a fixed period, after which they had to apply to
local authorities for relief, and local benefits were less generous and strictly means-tested.
Women received less benefit than men and young people less than adults.
Some areas were hit harder than others by the Depression. In towns that depended on a single
industry, the impact was far worse than in towns with a more diverse economy.
There were many indications that poverty was rising as a result of the Depression. Diseases linked to
poor nutrition and living conditions – such as tuberculosis and rickets – began to show an increases
after a period of decline. Doctors reported numerous cases of malnutrition among children.
The suicide rate increased as hope for the future disappeared.
Meanwhile, as unemployed tenants were unable to pay their rents and were evicted, tent cities and
shanty towns began to appear on the edges of large cities such as Berlin.
September 1928 – less than 1 million people unemployed.
1930 – 3 million people unemployed.
1932 – over 5 million people unemployed.
1933 – over 6 million people unemployed.
How does the small town of Brand- Erbisdorff illustrate the problems of poverty post the Wall Street
Crash?
It was a centre for glass-making. By April 1931, after the local glassworks had closed, nearly half of the
population was receiving welfare payments.
However, since most of the unemployed had been out of work for at least 2 years, they no longer
qualified for state employment benefits. Instead, they had to rely on the much less generous relief
provided by the local authority.
The impact on young people
The Depression led to a high rate of unemployment among young people.
In Hamburg in June 1933, for example, the unemployment rate among males in the 14-25 age group
was 39%, whilst amongst females it was 25.2%.
Such high rates of youth unemployment had a number of consequences.
With no jobs, and little prospect in the foreseeable future, gangs of young men congregated in public
spaces in German towns and cities.
