1. The Great Depression Learning Objectives:
To understand how Germany was affected by the Wall Street Crash of 1929
Examine how did the Wall Street Crash benefit the Nazi Party

2. Recap: How did the Nazi Party develop and organise its ideas up to1929?
‘Hitler was no more than the leader of a small splinter party, scarcely known outside of Bavaria and very likely doomed to remain forever on the fringe of political life’
Historian, 1929
How much do you agree with the above statement? What evidence have you found to support your argument?

3. The Lean years of the Nazi’s
LO: To suggest reasons for the Nazi Party’s poor performance in elections,
The Lean years of the Nazi’s
Since 1923 inflation had eased, employment had increased and the public were better off.
This was largely due to the work of Gustav Stresemann, who was popular both in Germany and abroad.
In 1925 Hindenburg, the well-respected 78 year old ex-field marshal of the German army, became president. His reputation restored confidence in the Weimar Republic.
As a result of all of the above, voters supported the Weimar government and the moderate parties instead of voting for extremists like the Nazis.

4. What can you learn from the source about the German economy in 1929?
LO: To understand how Germany was affected by the Wall Street Crash of 1929
The Great Depression
Why do you think the Golden Years officially came to an end in 1929?
Shortly before Gustav Stresemann died in 1929 he 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.”
What can you learn from the source about the German economy in 1929?

5. LO: To understand how Germany was affected by the Wall Street Crash of 1929
The Great Depression
Write as many words/phrases as you can to describe the event these pictures are illustrating
As early as 1926, there were signs that the boom was under threat - this was seen in the collapse of land prices in Florida.
Eventually, there were too many goods being made and not enough people to buy them.
Farmers had produced too much food in the 1920s, so prices for their produce became steadily lower.
There were too many small banks - these banks did not have enough funds to cope with the sudden rush to take out savings, which happened in the autumn of 1929.
Too much speculation on the stock market - the middle class had a lot to lose and they had spent a lot on what amounted to pieces of paper.

6. LO: To understand how Germany was affected by the Wall Street Crash of 1929
The Great Depression
In October 1929, share prices began to fall on the Wall Street Stock exchange
Falling shares meant people’s investments fell in value
Worried about losing money, people rushed to sell their shares before their value fell any further
On ‘Black Thursday’, 24 October 1929, 13 million shares were sold
This panic selling made things worse, and sent prices even lower
Shares worth $20,000 in the morning were worth $1000 by the end of the day’s trading
Within a week, investors had lost over $4000million
Unemployment - 13 million people were out of work.
Industrial production dropped by 45 per cent between 1929 and 1932.
House-building fell by 80 per cent between 1929 and 1932.
The entire American banking system reached the brink of collapse.
From 1929 to 1932, 5,000 banks went out of business.
Although many people went hungry, the number of recorded deaths from starvation during the Depression was 110, although many other illnesses and deaths were probably related to a lack of nutrition.

7. The Great Depression: Its affects on Germany
LO: To understand how Germany was affected by the Wall Street Crash of 1929
The Great Depression: Its affects on Germany
Bankers and Financiers in the USA recalled the loans made to Germany under the Dawes Plan in 1924 which left Germany with no money.
International trade decreased rapidly, which meant Germany could not get any funds from exports.
As a result, Germany did not need to produce so much, so factories closed and employers sacked workers.
This also affected German farmers, who were not in a good position to start with.

8. LO: To understand how Germany was affected by the Wall Street Crash of 1929
The Great Depression
Using your text books (pages 46-49) and the internet.
In pairs develop a role play conversation that you might have with one of the people you have read about in the sources.
Your conversation may focus on:
What life is like?
How they have been effected?
Who do they hold responsible for their wows and why?
You will role play your conversation at the beginning of next lesson.

9. In pairs, label yourselves A and B
LO: To understand how Germany was affected by the Wall Street Crash of 1929
The Great Depression
In pairs, label yourselves A and B
Student A
You have one minute to explain to your partner…
What was the Wall Street Crash?
How did it happen?
How did it affect America?
Student B
You have one minute to explain to your partner…
How did the American depression affect Germany?
Explain carefully how it spread to Germany.

10. Can you link together the problems?
LO: Examine how did the Wall Street Crash benefit the Nazi Party
The Great Depression
Economic
Link…
Social
For each category, give evidence of how Germany was affected by the Wall Street Crash
Can you link together the problems?
Link…
Political

11. LO: To understand how Germany was affected by the Wall Street Crash of 1929
The Great Depression
Using the sources below and what you have learnt so far explain the impact of the great depression on Germany?
Source B
Source A
September 1928
650,000 unemployed
September 1929
1,320,000 unemployed
September 1930
3,000,000 unemployed
September 1931
4,350,000 unemployed
September 1932
5,102,000 unemployed
January 1933
6,100,000 unemployed
Source C
Four private armies, with knives, revolvers and knuckle-dusters rampaged through the towns- the SA of the Nazis, the Red Front of the KPD, the Sozi of the SPD and the Stalhelmer. The Reichswehr (the army) were nowhere.
Kurt Ludecke, an eyewitness, reporting in 1930

12. LO: To understand how Germany was affected by the Wall Street Crash of 1929
The Great Depression
Many people within Germany were said to be ‘doubly bitter’ with the Weimar Government. This was the second time that the government had thrown Germany into large scale economic depression, the first time being during the period of hyperinflation in 1923
How far do you think that the German Government can be blamed for the economic depression that hit Germany after the Wall Street Crash?

13. The Great Depression: Effects on the Weimar Republic
LO: To understand how Germany was affected by the Wall Street Crash of 1929
The Great Depression: Effects on the Weimar Republic
How did the Depression weaken the Weimar government?
Unpopular economic policies
Scared of past mistakes – Hyperinflation
Raised taxes, cut wages and reduced unemployment benefits
Presidential rule
Social democrats left the coalition
Chancellor Bruning fell back on Article 48
The rise of extremism
Politics now mattered to everyone
Increase in political violence

14. The Great Depression: Effects on different people
LO: To understand how Germany was affected by the Wall Street Crash of 1929
The Great Depression: Effects on different people
Group
How were they affected?
Why were they affected?
Who will they blame?
Businessmen
Factory workers
Farm workers
Young people
Middle class

15. Businessmen saw their businesses close
Businessmen saw their businesses close. People had less money to spend on goods so demand fell, leading to profits also falling. Businesses had to either sack people or shut down.
As businesses closed, unemployment rose. 40% of all Factory Workers were unemployed by At the same time the government cut unemployment benefit to save money. For the unemployed this was a time of extreme poverty.
Farmers had not done well in the 1920s. Agriculture in Germany had been suffering for a number of years. Prices had been falling since In the 1930s farmers slipped further into debt. Farmers sold their land or struggled in poverty.
Young People could not find work. In 1933 over half of all Germans between the ages of 16 and 30 were unemployed. Sixty per cent of new university graduates could not get a job.
Middle classes lost their businesses, savings and investments. Many lost money as the banks collapsed whilst others had to shut down their businesses as their loans were recalled. They also suffered when Bruning put up taxes.

16. Exam Question
d) Study the source below and then answer the question that follows. Source: From a modern textbook In 1920, the Nazi Party announced a 25 point programme and support for the party steadily increased. The following year Hitler set up the Sturmabteilung (SA). The Munich Putsch of 1923 led to Hitler’s arrest and imprisonment and a change in his tactics. Use the source, and your own knowledge, to explain how the Nazi Party changed in the years 1920–28. (10 Marks)