Figure 1.--German children were severely affected by their parents' economic perdicament, especially their fathers losing their job. Here two children are collecting paper or anything else they can find after a Berlin stree market in 1929.
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Figure 1.--German children were severely affected by their parents' economic perdicament, especially their fathers losing their job. Here two children are collecting paper or anything else they can find after a Berlin stree market in 1929. |
The Depression played an important role in the NAZI sizure of power and in the image that Hitler built in Germany once he seized power. Tragically for Germany, the most serious period of the depression followed the New York Stock Market crash (1929) through Hitler's seizure of power (1933). The impact on Germany was especially severe because the German financial situation was still fragile. In addition to the pain and suffering of unemployment, the Depression had a profound psycholical impact on many Germans. There was briefly hope in the mid-1920s that Germany was recovering and the prpsperity of pre-War Germany could be gained. The Dpression dashed these hopes for many. And there was concern not only for the immediate problems, but many Germany believed to despair of the very idea of progress. They not only became convinced that the prosperity of pre-War Germany was irevocably lost, but that Germany was on a downward spiral giving rise to concerns over the future and an all pervasive insecurity. [Gilbert-Large, p. 241.] This provided fetile grounds for the growth of political extremism and their programs of massive political and social change as well as demogogery and scapegoating. The Depression reached crisis levels in Germany (1931). The Austrian Keditanstalt failed declared insolvenct (May 1931). This was the most important babk in Austria. Concerned that there money was not safe, Germans began withdrawing money from their banks many of which also became inslovent and had to close. Germany more than any other European country was affected by the American financial crisis. American loans were a major factor in Germany's economic recovery by 1925. Amerivan banks had also made substantial loans to German companies. Low wages in Germany had enabled companies to offer high interest rates to obtain short-term loans. Reichbank President Schacht had advised against financing through high-interest short term loans. Since the Stock Market Crash, American banks began demanding their loans repaid and refused to grant further credits. [Gilbert-Large, p. 243-44.] The resulting finacial crisis was disastrous for many Germany companies, a number of which were forced to close. Unemployment skyrocketed.
Davidson.
Gilbert, Felix with Duncan Clay Large. The End of the European Era, 1890 to the Present (Norton: New York, 1991), 598p.
Hanby, Alonzo. For the Survival of Democracy.
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