Category: The Great Depression Germany

Categories: German History | Great Depression

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The Great Depression Germany

Germany's Weimar Republic was hit hard by the depression, as American loans to help rebuild the German economy now stopped. Unemployment soared, especially in larger cities, and the political system veered toward extremism. The unemployment rate reached nearly 30% in 1932, bolstering support for the anti-capitalist Nazi (NSDAP) and Communist (KPD) parties, which both rose in the years following the crash to altogether possess a Reichstag majority following the general election in July 1932.

Repayment of the war reparations due by Germany were suspended in 1932 following the Lausanne Conference of 1932. By that time, Germany had repaid one eighth of the reparations. Hitler and the Nazi Party came to power in January 1933, establishing a totalitarian single-party state within months and initiating the path towards World War II, the most devastating conflict in world history.


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