The Wall Street Crash & effects of the Great Depression on Germany
The Wall Street Crash took place in 1929. It is when the American Stock Market lost 89% of it's value after investors sold their shares after the share prices rose while businesses collapsed.
As a result of this, many people were left unemployed and the US economy collapsed.
The Great Depression, not only affected the US, but it affected countries all over the world! Especially Germany.
It caused the American Loans to Germany (which their economy heavily relied on) to be recalled suddenly, causing the fragile German Economy to collapse and people lost all their savings.
By 1933, 40% of the working population were now unemployed. This caused extremist parties to rise in popularity as their ideas sounded ideal to helping the German Economy Recover.
As the coalition Government could not decide on how to solve the economic issues, President Hindenburg used Article 48 declaring it a time of emergency and made new laws by himself. This made Weimar Democracy weak and ineffective.