The document has sample questions and asnwers about the Great depression/Wall street crash. The document is 5 pages and has over 1500 words. There are 6 questions and each question is answered with a paragraph or mini essay. I highly recommend reading this document before a test and memorize some i...
On October 29, 1929, "Black Tuesday" hit Wall Street as investors traded some 16 million
shares on the New York Stock Exchange in a single day. Billions of dollars were lost, wiping
out thousands of investors. The next day, panic selling reached its peak with some stocks
having no buyers at any price. Millions of people invested their savings or borrowed money
to buy stocks, pushing prices to unsustainable levels.
2. Why was the wall Street crash significant to Germany:
In 1929 the Wall Street Crash led to a worldwide depression. Germany suffered more than
any other nation as a result of the recall of US loans, which caused its economy to collapse.
Unemployment rocketed, poverty soared, and Germans became desperate. German banks
had been large investors in US companies and suffered huge losses as the share prices of
these companies fell. This in turn created a banking crisis in Germany as savers began to
fear for their savings.
3. Study source A Why might Germany have liked the idea that in the USA businesses
was very successful:
Germany liked the idea because it meant that Germany would still receive loans from the
US. Under the Dawes plan 800 million marks in American loans was poured into
Germany’s industry production. If America’s business remained successful, the American
investors wouldn’t feel the need to withdraw the loans, so they would give more money to
Germany which helped the Weimar Republic to recover and prosper. Since the USA
businesses were successful, the 1920s became the Golden years for Germany until the
Great Depression hit. When the American businesses were plummeting, so was Germany’s,
and the Germans suffered from food and fuel shortages.
4. Study Source B and E How far do they support the idea that the Wall Street crash
caused all of Germany’s economic problems:
These 2 sources clearly support the idea that the Wall Street crash caused all of Germany’s
economic problems, source B and E prove that Germany’s economy suffered as a result of
the recall of US loans since the graph shows that the unemployment increased, which
caused its economy to collapse. Since unemployment rocketed, poverty soared, and
national government tax revenues declined. The crash had an immediate effect in Germany
as American investors, anxious about their financial position, began withdrawing their loans
, to Germany, which led to unemployment and a halt in the industrial production in
Germany.
5. Study Source C Why are these figures particularly problematic for the German
government?
Source C shows the slow decrease of national government tax revenues. Weimar’s
government revenue was problematic for the government because it caused an economic
decline. In 1922, the Weimar Government stated that it would not be able to pay the next
three years' instalments as a result of the decrease in tax revenues, this caused problems
for Germany’s government and economy.
6. Study Source D How useful is this in telling us what it is like for Ordinary Germans
during the great depression:
Source D shows an unemployed musician selling podcasts, this shows the life of an
Ordinary middle-class German because in 1929 2 million Germans were unemployed. The
middle class suffered the most during the Great depression, the poor were already used to
this type of poverty and the rich still had money to spare, however the savings of a middle-
class German that could buy a house in 1921, could barely buy a loaf of bread during the
Great Depression. The collapse of the stock market and the closing of more than 5,000
banks mostly affected the middle class. The professional men that worked at these jobs
now had to deal with a loss of income and unemployment. They now found themselves
having a hard time supporting their families, so they busked on the street to make some
money. This can all be proven by source D.
1. How did the great depression change German politics:
The rise in unemployment significantly raised government expenditure on unemployment
insurance and other benefits. Germans began to lose faith in democracy and looked to
extreme parties on the both the Left (the communists) and the Right (the Nazis) for quick
and simple solutions. Worldwide, there was increased unemployment, decreased
government revenue and a drop in international trade.
2. Why did the great depression have a particularly devastating effect on Germany:
The Great Depression was particularly severe in Germany, which had enjoyed five years of
artificial prosperity, propped up by American loans and goodwill. Unemployment hit
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