Germany and the Great Depression

The Great Depression was the economic crisis beginning with the stock market crash in 1929 and went on until the 1930s. Common patterns of any economic crisis involve a decrease in trade, cutbacks in production and consumption, increased unemployment, widespread deprivation/frustration and radical political agitation. This was certainly not a good time for nations of the world and Germany was no exception. Regardless of their attempts to reschedule the payment of the reparations due to their damage in the First World War, Germany was still faced with economic problems. Eventually, the United States began to lend them money in order for them to pay the reparations. However, catastrophe struck when the Wall Street Crash of 1929 occurred, leaving the US in an appalling economic state, and therefore doing the same to Germany, who now seemed to depend on US for money. Ultimately, this was what caused the Great Depression to distress Germany just as much as any other nation affected by the Depression at the time. The political, economic and social structures of Germany were clearly threatened by the impact of the Great Depression, especially obvious when examining the rise of Adolf Hitler, terrible working conditions (leading to unemployment and hyperinflation) and demonstrations, strikes and protests of the time.

The Great Depression was a bright, thriving road to triumph for Adolf Hitler and his Nazi Party. Before the crash, the Nazi Party held a mere 12 seats in the Parliament, but by 1932, during the climax of the Great Depression, the number of seats had shot to 230 in the Reichstag. In a country of over 60 million, before the very event of the depression, not even 100,000 Nazi members existed in the nation of Germany. Around this time, both right and left wing movements called for the abolishment of the government, leading to constant clashes. Hitler used his speech making ability and keen sense of what the people wanted to hear and campaigned throughout Germany in hopes that the people would rise up in a time where they were tired of the political haggling. In addition, during the time unemployment was a major issue. With this on the rise, the unemployed workers turned to the Communists with salvation. Landowners, industrialists, middle class people and conservative right-wing politicians all turned to support the Nazis in fear of a rise of Communist power. The political extremists were committed to overthrowing the democratic system by any means, including direct actions on the streets. In such desperate times, the people needed a leader that told them exactly what they wanted to hear; and that leader was Adolf Hitler. With Hitler in power, the government was abolished and he was put into power as a dictator. If it had not been for the Great Depression Hitler would not likely have found such an opportunity to rise to power, and another World War might have been avoided. However, clearly, desperate times called for desperate measures.

Economically, the Depression had led Germany to a state of unruly working conditions and with that included unemployment and hyperinflation. At a point during this era, the exchange rate was 4,200,000,000,000 Marks to 1 US dollar. At one point, German people would even burn money as fire wood because ultimately it cost less than actually buying wood. Even though this was the case, wages for employees stayed the same, meaning that a worker would receive the same amount of money, but that same money would have been extraordinarily decreased in value. During the peak of the Great Depression, approximately one of every four workers was unemployed. While some industries seemed to remain steady, like the auto industry, others weakened terribly. Those that were able to remain steady were plagued by terrible working conditions. Security and safety standards were of no concern. In hope to recoup Depression-era losses, companies worked their employees harder, faster, and longer. These very conditions would ultimately lead to an uprising and organization of unions to rebel against authoritative figures.

With terrible economic conditions comes an uprising of those affected by it leading to demonstrations, strikes and protests with which occurs social struggle between those in authority and the working class. In several companies employees held what was referred to as “sit-down strikes” where workers stopped working and took over the factory. In hopes to avoid union organizations, company managers would form a deal with the workers to increase their wage and give them certain rights but under the condition that they would agree no union would be created. Furthermore, unemployed workers, as previously mentioned, would turn to communists for support. And with such extremist values around the nation, people were willing to do anything they had to so that their situation would better, even if it called for direct actions on the streets. Angry housewives marched on the streets, protesting retailer’s misleading advertising and refusal to lower prices. It was a combination of public pressure and new state laws that ended the city’s tax strike.

Through the examination of Adolf Hitler’s rise to power, unemployment and hyperinflation and demonstrations, strikes and protests during the Great Depression it is safe to say that the era undoubtedly impacted Germany’s political, economic, and social structures. The Great Depression was a terrible time for a lot of nations, and Germany would prove to be no omission. The rise of the Nazi Party would soon lead to greater problems, affected Germany’s economy, politics and military all at once. Unemployment was the most visible sign of the depression and with the radical activist’s call for immediate action to alleviate suffering, the German’s experienced a challenge of the legitimacy of the government and an attempt at overthrowing certain authoritative figures. With the Wall Street Crash came all these negative effects and it is important to remember that Germany was not the only one to be affected. However, it is evident that the First World War had lead to Germany’s requirement to pay reparations, and with that need to borrow money from the US, which in turn back fired leading to the Great Depression in Germany and then the rise of Adolf Hitler eventually leading to the Second World War. In other words, the First World War ultimately led to World War One.