The Depression and the Fall of Weimar

Due to the dawes plan, Germany was recieving numerous loans from America. This was on the terms that if America ever needed it back, Germany would have to refund it straight away. Germany accepted these terms as they believed that this wouldn't occur, it would be highly unlikely. But of course, they were wrong. Just as they thought their bad luck was starting to fade, it striked back mulltiple times worse than what it was before. Americas stock market had collapse in late October 1929 and had demanded Germany to repay its loans within 90 days. Little did they know, that Germany had been spending more than they were recieving.

Due to the Wall Street Crash Germanys Economy fell drastically.It had caused many businesses to go bankrupt and many people to loose their jobs. By the winter of 1929-30 unemployment stood at over 2 million people and the Government was struggling to dispense wages to those who had lost their jobs or had their wages cut.These problems had cause political unrest within in the government causing the grand coalition to divide due to the problems of the benefits issue as different parties wanted to cut the benefits whilst others wanted to increase the benefits.

Ultimately the Weimar government was blamed for the disasterous effects of the Wall Street Crash by the people of Germany. This meant that moderate partys who supported the Weimar Government lost support whilst other extremist parties such as the Nazis and the Communists had started to gain support. People were voting for these parties as they seemed to be the only parties to offer a solution to the depression and they were the only parties that have never been part of the government and could not be connected to its failures.