How Did The Great Depression Affect Germany

How did the Great Depression aid Hitler to rise to power in Germany?

Introduction

My EPQ question is focused on how the Great Depression aided Hitler to become a powerful dictator within Germany; causing the Second World War. Although the Great Depression is a key factor, while researching, it has been suggested that there are other factors such as the “Treaty of Versailles”3, “propaganda”3, the fact that he was a “gifted speaker”3, “Reichstag building was set on fire”8, and the Munich Putsch leading to his “trial for treason”4.

The Great Depression was a catastrophic event beginning in 1929; America, and its effects lasting long into the 1930’s, in countries all over the world. The “biggest stock market since records began”9, was caused

For example “millions of German workers out of a job”1, suggesting that the Great Depression was indeed a catastrophic event to the Global economy. This source also suggested how the Great Depression spread to Germany. The reasoning behind this was the “Dawes Plan”1. This was a financial plan between America and Germany, giving financial support to Germany to pay its reparations for the war. However when the Great Depression hit “Americans immediately calling in foreign loans”1. Therefore this meant that the banks of Germany had to give America their money back; taking the German peoples savings, and leaving them financially ruined as they had to collect all of their money from their debtors. This led Germany to a financial crisis. Furthermore, this source has also highlighted other points that have helped Hitler to rise to power, such as, “hyperinflation”1, “propaganda”1, “Hitler was a gifted speaker”1, and, “the Treaty of Versailles”1. Arguably, the Treaty of Versailles, was one of the main points that Charles Hawley made, as it stated that Germany had to pay “132 billion goldmarks”1 in reparations, for the war. This led Stresemann to construct the “Dawes Plan”1 in 1924, which we know was how the Great Depression spread to Germany. Therefore, the Great Depression wasn’t the only

For example, the Great Depression started in Germany due to “artificial prosperity”3 due to “American loans”3. This means that when America had to recall their loans to provide for the American people, German banks had to recall business loans and debts. This forced “companies to shut down or downsize”3, leading to “6 million… out of work”3, and production levels had fallen to “58% of its 1928 levels”3. Therefore this meant that this economic crisis led to “Banks struggled to provide money and credit, and consumers lost confidence”3. And then “With public discontent soaring, membership of Hitler’s party increased to record levels”3. Therefore, this source suggests that the economic hardship in Germany, due to the Great Depression of 1929, Hitler and the Nazi party’s membership levels had increased rapidly, which, furthermore, suggests, that Hitler’s rise to power was ultimately due to the stock market crash, causing desperation of the German people, to vote for extremist parties, and party