Breakthrough The impact of the slump

Connector What happened?

The Result

Reparations Diagram Germany pay reparations Britain and France pay back war debts and loans USA loans money to Germany

Outcomes To know what happened in the Wall Street Crash To know how it affected Germany To know how this affected the Nazi Party

Wall Street Crash The roots of the Nazi’s rise to power lie in the WSC and the depression of the 30’s It polarised German politics even more and pushed voters towards extremist parties American capital was now being withdrawn which was making up the base of German recovery, along with exports dropping The Nazi’s were able to make the oppurtunity using propagnada and persuation to present themselves as the best possible party to save Germany

Effects of the Crash By 1933 around 6 million (1 in 3 ) people were unemployed, but more people than these supported the Nazi’s. The remaining 2/3’s wanted to stop a further slump in their living standards ie the Mittelstand The effect of unemployment increased the popularity of those who offered more radical solutions Demand for trade dropped rapidly- from £620mto £280 million Industrial production fell Agricultural prices fell 5 major banks collapsed in 1931 and businesses went bankrupt

Hidden problems Many families found it impossible to feed and keep warm the family due to limited social security benefits They were not limited to the working classes but also middle classes to professors in law Not only did they lose money but also pride and respectability The countryside was equally affecte with many tenant farmers being evicted from land that generations had farmed To some it seemed as if German society was breaking down uncontrollably and many lost faith in the Weimar republic This understandably led to a political crisis

Political Crisis The lack of confidence in democracy weaked the republics position in its time of greatest need In USA and UK people may have lost faith in the government but not the system, in Germany both was happening Herman Mullers Grand Coalition was elected in May 1928 but immediately undermined by the issue of reparations Although Streseman had successfully downgraded the payment to £1850 million under the Young Plan many felt any payment was still a betrayal, as it was linked to the lie of Germany’s War Guilt. Therefore the scheme had to be opposed This was the National Opposition and the move for a national referedum, they needed 21 million votes but got 6 million but the campaign stirred national emotions and got the Nazi party much publicity Howeever the Coalition collapsed over the financial shortfall of the national insurance scheme and how to pay for it (SPD vs DVP)

Brunig Following the collapse of the Grand Coalition the next government also collapsed. Brunig was leader of Centre party but he did hold a majority, so Reichspresident Hindenburg made it clear if the government was defeated or lost a vote of no confidence at the hands of the Reichstag, the Reichstag would be dissolved and he would invoke Article 48 His government was defeated comprehensively in july 1930 over its Finance Bill. As a result the government tried to introduce the bill through Article 48. The Reichstag then voted to condemn the tactic and demanding the withdrawal of the Article The Presidental response was to dissolve the Reichstag and a called a Election for September The government was now shifting from parliament to presidential power

1930 Election The period of economic and political turmoil show a shift in voting In 1930 Nazi won 14.4% in elections for the Saxony Landtag (regional assembly) which was 9% higher than pervious years Goebells had been appointed to lead propaganda which helped increased votes In Sept 1930 –Reichstag 12 seats to 107 seats –800,000 to 6.4 million votes

Effects Between sept and end of the year membership and the sectional party organisation, especially in the countryside- the role of the National Socialist Agrarpolistischer Apparat (AA) it aimed to spread Nazi ideas to farmers. Similar campaigns at national levels meant the momentum carried on into 1931, with the Nazi's averaging around 40% at local elections Hitler and the Nazi's futher reigned in the power of the SA, leading to the party being seen as being more legal. Dealing with the revolts of Strasser and Stennes (leader of SA in Berlin) it re-enforced the leadership of Hitler

Economic Collapse of 1931 There is a strong link between Brunigs lack of economic leadership and the rise of the Nazi's Brunig turned more and more to the President for support rather than the Reichstag. As he was dictated to by Hindenberg his economic aim was to reduce reparations rather than solve unemployment As a result of a comnibation of a possible freeze on payments and rumours of an Autro-German customs union led to a flight of foreign money out of Germany In 1931 the Austrian Creditanstalt Bank collapsed followed by fianancial panic and German banks being shut for 3 weeks The government had to prop up the banks with £1000 million The Nazis were able to capitalise on the economic crisis to gain more support and the collapse of the right wing 'Harxburg Front' left the Nazi's in prime position

Red Book Look at the table on page 122 –Make notes on Nazi electoral success –Complete the skills builder task