Germany, 1918–1945 – The Collapse of Democracy, 1928–1933: The economic,…

The idea

The Great Depression devastated Weimar Germany, triggering profound economic, social, and political crises. Economically, the withdrawal of US loans caused mass bankruptcies and unemployment, peaking at six million by 1932. Socially, this created widespread destitution and a psychological loss of faith in the Republic. Politically, the crisis shattered the Grand Coalition in 1930 over unemployment benefit policies. Subsequent governments under Brüning, Papen, and Schleicher relied on Article 48, ruling by presidential decree. Brüning’s deflationary policies, such as wage cuts, worsened the misery. Consequently, elections between 1930 and 1932 saw a dramatic polarisation, with voters abandoning moderate parties for extremists.

What earns the marks

• Identify the economic consequences of the Wall Street Crash on Germany, specifically the recall of short-term American loans and the resulting surge in unemployment.
• Explain the social impact of the Depression, including the rise in poverty, the strain on the welfare system, and the radicalisation of the working and middle classes.
• Analyse the political paralysis caused by the collapse of Müller's Grand Coalition and the subsequent reliance on Hindenburg's presidential decrees under Article 48.
• Evaluate the failure of government policies, particularly Brüning's deflationary measures, in addressing the economic crisis and their role in alienating the electorate.
• Assess the significance of the 1930 and 1932 Reichstag elections in demonstrating the collapse of the moderate democratic centre and the surge in extremist support.

Common mistakes and how to put them right

• Claiming the Wall Street Crash was the sole cause of Germany's economic problems.

  Put it right: Acknowledge that the German economy was already stagnating before 1929 and was structurally dependent on short-term foreign loans.

• Stating that Brüning deliberately caused the Depression to end reparations.

  Put it right: Explain that while Brüning used the crisis to argue against reparations, his deflationary policies were primarily driven by a fear of repeating the hyperinflation of 1923.

• Assuming the working class universally abandoned the SPD for the Nazis.

  Put it right: Note that the unemployed working class largely shifted towards the KPD, while the Nazis drew heavily from the lower-middle class and rural voters.

Exam tips

• Link economic statistics directly to political shifts; use the unemployment figure of six million in 1932 to explain the electoral breakthroughs of the KPD and NSDAP.
• When discussing government policies, contrast the inaction or deflationary measures of Brüning with the desperate need for state intervention demanded by the electorate.
• Use the collapse of Müller's government in 1930 as the definitive turning point marking the end of parliamentary democracy and the beginning of presidential rule.