Impact of Great Depression on the Weimar Republic
Impact of the Great Depression on the Weimar Republic
The fist clenching crash of the Wall Street Market in 1929 known as the Great Depression, had a massive impact not only in the USA itself, but also impacted many other nations, this included the Weimar republic, which was devastated by the crash, and due to it, the Weimar Republic economy was torn to shreds.
Before the depression of 1929, the situation in the Weimar republic was seemingly fine and stable, however, according to Stresemann, the man who brought Weimar Germany out of its darkest hour due to hyperinflation and into the so called golden years of Weimar, the situation was not as prosperous as it would have appeared, shortly before his death Stresemann stated, "The economic position is only flourishing on the surface. Germany is in fact dancing on a volcano. If the short-term credits are called in, a large section of our economy would collapse." Unfortunately for Weimar Germany, this is exactly what happened, the crash of the market in the USA forced them to recall the loans they had previously given to Weimar Germany, leading the republic into a severe depression along with many other countries of the world.
After the Wall Street crash the USA gave the Weimar Republic 90 days to begin the repayments of the money which America had loaned. Unfortunately no other world power could aid them with money as Britain and France were still recovering from the First World War, not to mention the crash also took a big toll on Britain regardless. Russia was still in desperate state and embarking on the 5 year plans. Therefore a desperate Germany would only have one other place to look for cash, that being the USA, of course, they are the ones asking for the cash in the first place as they were essentially bankrupt.
As a result of all of this, many industrial zones in Weimar Germany, such as Ruhr, went totally bankrupt, forcing them to lay off workers in the millions. Unemployment absolutely sky
The fist clenching crash of the Wall Street Market in 1929 known as the Great Depression, had a massive impact not only in the USA itself, but also impacted many other nations, this included the Weimar republic, which was devastated by the crash, and due to it, the Weimar Republic economy was torn to shreds.
Before the depression of 1929, the situation in the Weimar republic was seemingly fine and stable, however, according to Stresemann, the man who brought Weimar Germany out of its darkest hour due to hyperinflation and into the so called golden years of Weimar, the situation was not as prosperous as it would have appeared, shortly before his death Stresemann stated, "The economic position is only flourishing on the surface. Germany is in fact dancing on a volcano. If the short-term credits are called in, a large section of our economy would collapse." Unfortunately for Weimar Germany, this is exactly what happened, the crash of the market in the USA forced them to recall the loans they had previously given to Weimar Germany, leading the republic into a severe depression along with many other countries of the world.
After the Wall Street crash the USA gave the Weimar Republic 90 days to begin the repayments of the money which America had loaned. Unfortunately no other world power could aid them with money as Britain and France were still recovering from the First World War, not to mention the crash also took a big toll on Britain regardless. Russia was still in desperate state and embarking on the 5 year plans. Therefore a desperate Germany would only have one other place to look for cash, that being the USA, of course, they are the ones asking for the cash in the first place as they were essentially bankrupt.
As a result of all of this, many industrial zones in Weimar Germany, such as Ruhr, went totally bankrupt, forcing them to lay off workers in the millions. Unemployment absolutely sky