The investigation will primarily concentrate on examining the causes and impacts of the Great Depression in Germany from 1924 to 1933. It will rely mainly on secondary sources like books and websites, but will also incorporate some primary sources such as pictures or autobiographies from people who experienced that period.
In this text, I will compare and contrast evidence from two sources – an autobiography called ‘Children of the Unemployed’ by Margot L. and a textbook titled ‘Germany 1918-45’ by Josh Brooman. These sources will be evaluated for their limitations and reliability in terms of their origin and purpose. The aim is to draw a settled conclusion based on the evidence and source evaluation. Additionally, this section provides a summary of evidences related to Germany’s Weimar Republic before the Great Depression, which was established in 1919.
The Treaty of Versailles obligated Germany to make reparations payments, including to France. In 1924, the Dawes Plan came into effect and greatly contributed to Germany’s recuperation after the inflation crisis in 1923. The plan aimed at helping the Weimar Republic overcome hyperinflation and stabilize its economy. One key aspect of this plan involved a loan of 800 million marks from the United States. Additionally, as part of the plan, Germany agreed to pay reparations based on its financial capacity, beginning with an initial payment of 1000 million marks. In summary, through the Dawes Plan, American investment and loans played a vital role in restoring Germany’s economic condition.
Between 1924 and 1929, foreign banks were willing to lend approximately 25000 million gold mark to German borrowers after Germany overcame inflation.
In October 1929, the New York stock exchange crashed in response to the Great Depression, causing American investors to withdraw their investment from Germany and demand immediate repayment.
Germany was given a 90-day period by America to repay the loaned money. This resulted in a decline in overseas markets for most countries and led to a worldwide depression. German businesses that had operated without loans were negatively affected.
11 The implementation of the Smoot-Hawley Tariff Act in 1930 by the United States resulted in the prohibition of Germany and other foreign companies from selling their products in U.S. markets.
12 As a result, German industrialists lost access to U.S. markets and faced difficulties securing credit, leading to the closure or reduced operations of numerous industrial companies and factories.
13 The collapse of the Austrian Kreditanstalt Bank in the summer of 1931 was followed by subsequent failures of the German Norddeutsche Wollkammerei and Darmstadterbank.
14 The decline in the economy was evident through a 55% decrease in the value of German exports, which dropped from ?630 million in 1929 to ?280 million in 1931.
15 By 1932, Germany’s industrial output had decreased to only 40% of its level in 1929.
16 The fall in agricultural prices affected a large mass of peasantry.
17 The number of unemployment rose to over six million by the early 1932.
18 60% of each new university graduating class was unemployed.
19 Low wages, short-time working, and worse conditions of work were endured by millions of German workers.
20 The government paid unemployment benefits to German workers for 26 weeks.
21 An unemployed German in 1930 looking for work with a placard that says, “I am a trained shorthand typist, out of work, looking for any kind of work.”
“22 A 13-year-old girl provides an explanation of the government’s crisis payment system. She states, ‘First, my father went to sign for the dole. Later, when the time for signing on ran out, he received ‘crisis benefit’. He had to collect the money from welfare, which was not enough to support our family of six. I often witnessed my mother’s worries about clothing and feeding us.’ 23 (473 words) Section C: An Evaluation of Sources Primary Source L, Margot. Die Kinder der Arbeitslosen (Children of the unemployed). Ruth Weiland: 1993. The source is valuable because it is a primary source.”
The author, a 13-year-old girl from Ruth Weiland, Germany, shares her firsthand experiences during the Great Depression (1929-1933). Through her personal account, we gain insight into the economic and social conditions prevailing in Germany at that time. She highlights how her family relied on crisis benefits to make ends meet, emphasizing their dependence on this support. The primary aim of her autobiography was to document her observations and encounters amidst widespread unemployment in Germany. However, it is important to note that this source offers a limited perspective rather than a comprehensive overview.
When she wrote her autobiography at the age of 13, it is possible that she did not fully understand the complexities of the crisis benefit and economic downfall during that time. However, Brooman’s book “Germany 1918-45” provides valuable information on this subject (accessed May 5, 2013). It is important to note that Pearson Education, the publisher of this book, is a highly respected and renowned publisher known for selecting top-quality authors and books with authentic historical facts and content.
Hence, the book successfully facilitates product sales and captivates readers’ attention for purchasing and exploring it. Additionally, the publication offers numerous primary sources and clear yet comprehensive explanations. Its purpose revolves around educating both students and individuals with a keen interest in German history during the Weimar and Nazi periods. Nonetheless, the book’s limitations arise from its publication in England and its English language, potentially leading to less accuracy compared to works produced and written in Germany. Furthermore, the book primarily presents factual information, but it is plausible that some aspects may diverge from the truth.
Moreover, we lack a primary perspective of the people during that time. (310 words) Section D: Analysis Before the Great Depression, Germany established a new Republic known as Weimer in 1919. The new republic faced significant weaknesses from its inception. The government was held responsible for the nation’s defeat and post-war humiliation resulting from the Treaty of Versailles. According to the treaty, Germany had to make reparations to countries such as France and England to aid in rebuilding their industries.
26 Germany soon faces many economic problems and drastic inflation. After the inflation in 1923, Germany’s recovery had been largely reliant on American investment, which was a direct result of the Dawes Plan in 1924.
27 The Dawes Plan was formulated to assist the Weimar Republic in overcoming hyperinflation and achieving stability in its economy.
28 The United States granted Germany a loan of 800 million marks to initiate the Dawes Plan.
29 Under the Dawes Plan, Germany agreed to make reparation payments as per its affordability each year, beginning with 1000 million marks.
30 Germany went through a period of inflation from 1924 to 1929, and during this time foreign banks, mostly American, were willing to lend around 25000 million gold marks to German borrowers.
31 Unfortunately, the debt that Germany owed to the United States became the main reason for Germany’s economic downfall during the Great Depression. In October 1929, a major disaster happened at the New York stock exchange on Wall Street which caused a significant decrease in stock values and led to various economic problems in the US.
32 The United States compelled the Americans to retract their investment from Germany and demand prompt reimbursement. The United States granted Germany a 90-day ultimatum to repay the borrowed funds.
33 At the same time, numerous countries worldwide encountered an economic slump as a result of an abrupt decrease in foreign markets for their products.
34 As a result, even German businesses that did not depend on loans from the United States faced severe consequences. In 1930, the United States enacted the Smoot-Hawley Tariff Act, which imposed limitations on both Germany and other international companies selling goods within its borders.
The imposition of tariffs on foreign imports negatively impacted German industrialists. They faced difficulties in accessing US markets and obtaining credit, which resulted in the closure or downsizing of many industrial companies and factories. Consequently, German exports saw a substantial decline of 55%, dropping from €630 million in 1929 to €0. This subsequently caused an increase in unemployment rates and a general deterioration of the business environment within the country.
280 million in 1931 was a large mass of peasantry affected by the sharp fall in agricultural prices. Additionally, in the summer of 1931, the Austrian Kreditanstalt Bank fell under the pressure of the Great Depression, followed by the collapse of the German Norddeutsche Wollkammerei and Darmstadter bank. This resulted in millions of German workers having to suffer from low wages, short-time working, and worse working conditions. In 1930, an unemployed German, who was a trained shorthand typist, posted a placard looking for any kind of work.
41 The likelihood of unemployment was high even for professionals and trained workers. According to statistics, 60% of each graduating class from universities during that time period were unable to find jobs.
42 Employment opportunities were greatly affected by the Great Depression, leading to a substantial rise in registered unemployment numbers. By early 1932, the number of registered unemployed individuals had exceeded six million.
43 In addition, there were an estimated one to three million people who were jobless but did not officially register as unemployed. Overall, approximately seven to nine million Germans were without work by 1932.
44 The German economy was greatly affected by these significant figures, resulting in around 23 million individuals being directly impacted.
45 Consequently, people experienced poverty and faced difficulties in meeting their basic needs. To address this issue, the government felt obligated to offer assistance by providing subsidies and aiding German workers through unemployment benefits for a duration of 26 weeks.
46 In her autobiography section, a 13-year-old girl from Germany during the Great Depression depicted the crisis payment system. She recounted, “Initially, my father went to register for financial aid.”
Later, when the time during which he could sign on ran out, he received ‘crisis benefit’ and had to collect the money from welfare. However, this sum was insufficient to manage on. I frequently witnessed my mother worry about clothing and feeding our family of six. Through her personal experiences, we learn that the Weimar government provided only a specific amount of money to each German worker, and this amount was barely enough to sustain and support their family. (802 words) Section E: Conclusion
Germany’s debts to the United States had a significant impact on its experience of the Great Depression, causing numerous economic challenges such as reduced exports, a decline in German businesses and industrialists, and high unemployment rates in 1932. The Great Depression itself also had a profound effect on Germany’s economy. When the depression began, the US demanded immediate repayment of its debts from Germany, which quickly affected Germany’s ability to meet its financial obligations.
