The economy was suffering from fundamental flaws because it relied almost entirely on the flow of US loan money Germany had to pay for progressive measures Industrialists resented the gains that workers were making The conservative elites tolerated the changes being made by the Republic The right in Germany had a negative view on much of the art Expressionism and modernism were seen as a betrayal tot Germany great cultural traditions Many German artists were Jewish and communist which the nationalist right despised. 1. Collapse of the Whimper Republic The economic crisis created by the depression led to a political crisis The economic policy pursued by Burning drove Germany into deeper depression The suffering caused by the depression created feelings of desperation and psychological disillusionment It gave Hitler and the Nazi Part/ the opportunity they had lacked SSP chancellor, Hermann Mueller lost support and could not fund the unemployment insurance scheme Reichstag election, September 1930- the SSP lost votes as more people were voting for parties on the extremes Presidential election, March 1932 – Hinderers term as president came to an end The falling Of Burning May 1932 – Burning was removed from power The July 1932 election – Nazis gained 230 seats and was now the largest part/ in the Reichstag December 1932 -January 1933: von Pane removed as chancellor and replaced by von Clinchers Pane persuades Hindering to accept a coalition with Hitler as chancellor Hitler becomes chancellor on 30 January 1933 1. 4 Impact of the Great Depression on Germany The Great Depression had economic, social, psychological impact on Germany The German economy was suffering long before the Wall Street Crash in October 1929 America needed Germany to repay the money loaned to the economy Germany stuttered a major banking crisis
Unemployment affected nearly every German family Companies throughout Germany went bankrupt The depression brought Germany into a deep sense of psychological disillusionment Summaries I _2 Political, economic and social issues in the Whimper Republic to 1929 Although the democratic parties ever getting 50% of the vote and parties on the far left were being ignored, there was a negative consensus towards the republic. Most German voters still supported non-democratic parties of both the left and right. In the sass, political parties were developing Para-military groups including he Nazi AS on the right and the KIP Front Fighters League on the left. Between August 1923 and October 1929 Steersman’s key role guaranteed stability and smooth changes. However, the anti-democratic thinking conservative elites still controlled major institutions including the police, judiciary, education, and the bureaucracy.
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Steersman’s diplomatic skills provided Germany with international gains made by the Dates and Young Plans, and the Locator Agreement, However, every diplomatic success provided the right with anti- republic propaganda. Accepting a reduction in reparations meant accepting war guilt. Signing the Locator and entering the League of Nations meant accepting the validity of the Versailles Treaty. Although there was no army interference in the running of the democracy, the army contempt for the republic had not disappeared. Under von Skeet, the army operated like a ;state within a state’, free of government control, Although the Dates plan made a reduction in reparation payments, Germany had to pay a price. It lost control of its Central Bank to ensure there would be no repeat of the note printing frenzy and to secure government revenues.
Germany also lost control of its railways. Throughout he sass, Germany’s economic Success relied almost entirely on the flow Of the US loan money into the country. Any crisis inside the united States could see an end to this flow. Once this happened, the German economic prosperity would collapse immediately. Germany’s economic modernization caused high structural unemployment and in 1926, unemployment was as high as 10%. By 1 926, Germany’s farming sector was experiencing an agricultural depression with prices of farm products at rock bottom. Germany’s reliance on international trade was dangerous. It became very difficult to sell German exports when depression it.
German’s success in social issues also had a down side. The progressive measures for Whimper Social Policy had to be paid for. This forced Whimper governments to impose heavy’ taxation levels which businessmen and middle class salary earners hated. Industrialists resented the gains that workers were making and the privileged position that the trade unions seemed to be enjoying under Whimper governments. The conservative elites in all areas tolerated the changes being made by the republican governments when times were good. However, they would seek to overturn such gains if times turned bad. Although artistic achievement was significant in Germany, there was a dark side to this aspect of Whimper life.
Older Germans living in regional and rural areas and treasured the traditional values of the old Germany hated everything about the cultural explosion that was taking place in Berlin. The right in Germany viewed much of the art as decadent, sexually explicit and morally disgraceful. Expressionism and modernism were seen as a betrayal of Germany’s great cultural traditions. Many German artists were Jewish and communist, and sought inspiration from outside Germany. These were three reasons for the nationalist eight to despise what was happening. The impact Of the depression created the circumstances that made possible the events that would see the demise of the Germany democracy.
The economic crisis created by the depression led to a political crisis. Burning pursued an economic policy drove Germany into deeper depression. The suffering caused by the depression created feelings of desperation and psychological disillusionment which led to increasing violence in political life. This gave Hitler and the Nazi party the opportunity they lacked and made it possible for the conservative elites to lead Hitless appointment as chancellor. The resignation of the Mueller government on 27 March 1930 marked the beginning of the end for the democratic experiment in Germany. Mueller wanted to raise taxes in order to maintain the unemployment insurance scheme.
His right wing cabinet refused to go along with this and he was not able to fund the scheme. Mauler’s response was to ask President Hindering to use his power to push through the taxation measure, However, Hindering refused and Mueller had no choice but to resign. Following Mauler’s resignation, the president appointed the Centre Part/ leader, Heimlich Burning as the next chancellor, Burning had no majority in the Reichstag UT he ruled using the emergency powers under Article 48. His ultimate aim was to restore the monarchy with a right-wing government. Democratic parliamentary government had come to an end in Germany. In September 1930, nevi elections were called after the Reichstag dissolved.
The election results were a disaster for the republic. The SSP had lost votes as more and more people were voting for parties on the extremes Of the political spectrum. Burning failed to gain a majority of seats but held on to power by relying on Hindering use Of Article 48. Hinderer’s seven year term as president came to end in March 932. Burning failed to have the constitution changed to extend Hindering term in office. Hinderer’s close advisors saw Burning as a failure and it was decided that he had to be removed from power. Burning had proven to be unsuccessful in dealing with the severity of the depression as his policies had the effect of making the impact of depression worse.
Another factor that worked against him was his failure to end reparations. He believed his deflationary policies would convince allied leaders of Germany’s inability to pay reparations and see their end. Burnings attempt to ‘nationalist’ some of East Prussia’s ended estates was deemed ‘left-wing’ and 50 he was forced to resign. Franz von Pane was appointed the new chancellor. The next elections tort the Reichstag were held in July 1932, The Nazis gained 230 seats and was now the largest party in the Reichstag. German politics had become even more pollarded as SSP and EDP support continued to fall. Unhappy with the results of the July election, Von Pane called for new elections which ever held in November 1332.
Although the Nazis remained the largest party in the Reichstag, the results were a setback for the party as their vote tell by two million, giving them a total of 196 seats. Von Clinchers believed that von Pane had been a failure as chancellor and wanted to have him removed Clinchers was jealous of von Pane’s closeness to President Hindering. He planted fears of civil war and concerns about the role of the army in such a conflict into Hindering mind and convinced him to request for von Pane’s resignation. Clinchers tried and failed to persuade Gregory Stresses, the left wing leader of the Nazi Para into his cabinet. He asked for authority to rule by emergency decree but this was refused. Von Pane was dedicated to bringing about the demise of von Clinchers.
He came poniard to persuade Hindering Of the necessity Of accepting a coalition With Hitler as chancellor. Von Clinchers was removed from power as he repeated Burnings mistake of attempting to nationalist some of the East Prussian landed states. He resigned on 28th January 1933. Hinderer’s advisors convinced him that there was no danger in making Hitler chancellor. The secret deal was worked out and Doll Hitler became chancellor on 30th January 1933. The Great Depression had a major economic, social, psychological and political impact on Germany. Germany’s economy was suffering long before the Wall SST rash of October 1329. Their economic_ boom had relied almost entirely on the flood of overseas investment, especially the IIS investment.
US investors were sending their funds to Germany because interest rates were sufficiently high for the investors to receive a solid return on their investment The IIS Stock Market was experiencing spectacular growth. During 1 928, stock prices rose even higher, as did the opportunities to make even more money. US investors began to remove their funds from Germany in order to invest on Wall SST which slowed the German economy and caused an increase in unemployment. In order to keep foreign funds in Germany, German interest rates were increased, limiting domestic investment in the economy Which also slowed the economy. The crash had a devastating impact on both the American and German economy.
In 1924, America propped up the Whimper Republic With huge loans and now needed those loans back to assist her faltering economy. America gave Germany 90 days to repay money loaned to her. Britain, France and Russia did not have the money to give Germany cash injections. Whimper Germany could only call on America for help and it was effectively bankrupt by the end of 1929 ND incapable of lending money. When stock prices on the New York market collapsed in October 1929 and continued to slide, the LIST economy went into fireball, For Germany, this meant the immediate end of US funds flowing into the country. LIST investors urgently withdrew what tends they could from the country.
Businesses all over Germany collapsed including the industrial zones such as the Our. Bankruptcy became a nationwide phenomenon and unemployment affected nearly every German family. The reaction of many countries to the depression was to move to protect their own domestic industries. This led to major increases in tariffs with the aim of keeping out foreign goods and hopefully keeping home industries stable. This devastated an economy like Germany which relied on international trade In July 1931, Germany suffered a major banking crisis where the country largest bank, the Tanat went bankrupt. This led to panic in the banking sphere as people tried to grab their money before the bank fell.