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"The slump had a major effect on the Weimar Republic. It induced a general feeling of gloom and reinforced many Germans' hostility to what they saw as a feeble and failing democratic system."
(Hite & Hinton)

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´´The impact on Weimar Germany was even more dire. Germans were not so much reliant on exports as they were on American loans, which had been propping up the Weimar economy since 1924. No further loans were issued from late 1929, while American financiers began to call in existing loans. Despite its rapid growth, the German economy was not equipped for this retraction of cash and capital. Banks struggled to provide money and credit; in 1931 there were runs on German and Austrian banks and several of them folded. In 1930 the US, the largest purchaser of German industrial exports, put up tariff barriers to protect its own companies. German industrialists lost access to US markets and found credit almost impossible to obtain´´

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"40% of the total amount of US capital invested abroad was in Germany" (Waller).
German industrial protection fell by almost 50% between 1929-1932 (Waller)
"Unemployment soared from 2 million in 1929 to 4.5 million in 1931" (Waller)
"Bruning cut civil servants' salaries 12-16%, twice reduced unemployment benefits and other social welfare payments, and ordered that wages to be reduced to their January 1927 levels"(Waller)
1 in 3 people were umemployed
By 1932 German industrial production was at 58 percent of its 1928 levels

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Germans lining up for food outside of a slaughterhouse (Alamy).

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Correlation Between U.S. and European Wealth from 1929-1933

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Correlation Between U.S. and European Wealth from 1929-1933

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"Open the Factories": a communist poster from 1932

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"Open the Factories": a communist poster from 1932

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Impact of the Great Depression on the German People

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Impact of the Great Depression on the German People

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A brief overview of the economic, social and political impact of the Great Depression on Germany. Extract from History File.

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Key Indicators of the State of the Germany Economy 1928-33

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Key Indicators of the State of the Germany Economy 1928-33

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" 'When America sneezes, Europe catches a cold' ...In fact, it would be fairer to say that after 1929, Germany caught pneumonia" (Hite & Hinton).
(Regarding German Industry) "With the collapse of agricultural prices on the world markets, their position became much worse and, by 1932, many were bankrupt" (Waller).