Great Depression

Definition

The Great Depression was a severe worldwide economic downturn that began in 1929 and lasted throughout the 1930s, characterized by massive unemployment, plummeting production, and widespread poverty. It fundamentally altered the global economy and had profound effects on political systems, particularly in Germany, where it contributed to the instability of the Weimar Republic and facilitated the rise of Adolf Hitler and the Nazi Party.

5 Must Know Facts For Your Next Test

1. The Great Depression began with the Stock Market Crash of 1929, which led to widespread financial panic and loss of savings for millions of people.
2. In Germany, unemployment soared to around 30% by 1932, creating a desperate economic situation that many blamed on the Weimar Republic.
3. The economic crisis created fertile ground for extremist political movements, particularly the Nazis, who promised to restore national pride and economic stability.
4. International trade collapsed during the Great Depression as countries adopted protectionist measures, worsening economic conditions worldwide.
5. The Great Depression ultimately led to significant changes in government policy and social welfare programs as nations sought to recover from its effects.

Review Questions

• How did the Great Depression contribute to the political instability of the Weimar Republic?
  • The Great Depression severely undermined the Weimar Republic's legitimacy as it faced massive unemployment and economic turmoil. The government's inability to effectively respond to the crisis led to public disillusionment and loss of faith in democratic institutions. As people sought solutions, extremist parties like the Nazi Party gained popularity by promising radical changes and scapegoating others for Germany's woes.
• Evaluate the role of the Great Depression in facilitating the rise of Adolf Hitler and the Nazi Party in Germany.
  • The Great Depression played a crucial role in Adolf Hitler's rise to power by creating an environment of desperation among the German populace. As traditional parties struggled to address economic issues, many citizens turned to Hitler's promises of economic recovery, national revival, and strong leadership. The Nazis exploited this situation by portraying themselves as the only party capable of restoring stability and addressing the grievances of ordinary Germans.
• Assess how the global impact of the Great Depression influenced political changes beyond Germany during this period.
  • The Great Depression had a profound global impact that reshaped political landscapes beyond Germany. In many countries, economic distress led to increased support for authoritarian regimes as citizens sought stability amid chaos. This shift included movements towards fascism in Italy and militarism in Japan, while in others like the United States, it prompted significant reforms through programs like the New Deal aimed at recovery. The interplay between economic crises and political change during this time set the stage for future conflicts leading up to World War II.

Related terms

Stock Market Crash of 1929: A major financial crisis that occurred when stock prices collapsed, leading to a loss of confidence and triggering the Great Depression.

Weimar Republic: The democratic government established in Germany after World War I, which struggled with economic problems and political extremism during the Great Depression.

Nazi Party:

The political party led by Adolf Hitler that capitalized on economic despair during the Great Depression to gain power in Germany.