The Weimar Republic was set up in 1919, it was Germany's new democratic government. Although it had a lot of strong political parties, it lacked a strong democratic tradition. And millions of Germans blamed the Weimar Republic for their country's defeat and post war humiliation caused by the Treaty of Versailles. With the help of the U.S, Germany finally was back on their feet and reducing inflammation.

The U.S had a strong economy and with the help of the U.S a lot of countries were being financially aided. But the more money the U.S gave out, the less money they had to support themselves. But if the U.S economy falls, the whole world's economic system would fall, and cause a global crisis. By 1929, American factories turned out mainly half of the world's industrial goods and led to enormous profit. But it wasn't distributed evenly. The richest 5% of the population received 33% of all personal income, but 60% of all American families earned less than $2000 a year. Many weren't able to buy goods, and a lot of workers lost their jobs. Stock Markets were failing and the downward economic spiral began.

People could not pay money they bought at high prices, money was now worthless, unemployment rates began to rise and industrial production, prices and wages declined. So many people had lost their jobs and America was in such a bad spot that in 1932, production had been cut in 1/2, thousands of businesses failed and banks closed. By 1933 1/4th of all American workers had no job. This was the Great Depression. Many countries depended on exploratory goods from the U.S. Everyone suffered, and world trade dropped. 65%.