What was the Great Economic Depression …

The Great Economic Depression of 1929-1934 had a rippling effect all over the world. It aggravated the economic crisis in Germany and nearly crippled German economy.

i. German investments and industrial recovery leading to economic stability between 1924-1928 was built on short term loans largely from USA. This support was withdrawn when the Wall Street Exchange crashed in USA in-1929.

ii. In Germany by 1932 industrial output fell to 40% of the 1929 level.

iii. Workers lost their jobs and were paid reduced wages. Number of unemployed touched an unprecedented 8 million.

iv. As jobs disappeared unemployed youth took to criminal activities.

v. The crisis created deep anxieties among the middle class who feared destitution and proletarianisation.

vi. Large mass of peasantry was affected by a sharp fall in agricultural prices.

vii. Women were severely affected and worried for their hungry children.

viii. It was during this period that Nazi Party which was no more than a conspiratorial group became a mass movement.

ix. The depression contributed to the rise of Hitler and establishment of dictatorship in Germany.