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Timeline:


- 1923: Hyperinflation effects Germany's Mark and makes it practically worthless

- 1924: Dawes Plan begins, America gives Germany loans

- 1929-1930: Young Plan begins and German reparations payments become slightly easier

- 1929: Wall Street crashes and sends the world's economy into turmoil, this signals the start of Germany's great depression

- 1930: Germany's unemployment rate reaches 30%

- 1932: Lausanne Conference

- 1933: Hitler's Nazi party come to power


Summary:


October 1929 marked the beginning of what was to be dark period for Germany and most of the world. Wall Street collapsed and the whole world was effected in some way. The Wiemar republic was sent into turmoil. Germany's economy was very much based on foreign capital and foreign trade. Also American had given Germany loans in the Dawes Plan (1924) and the Young plan (1929) and now, with their economy disintegrating, they needed the loans back. Germany was given 90 days to pay America back however no other country but America had the amount necessary and America was of course bankrupt.

This disaster came only 6 years after hyperinflation and many people were still trying to recover from their losses. Companies throughout Germany, mainly in the industrial area's such as the Ruhr were going bankrupt and as a result millions of workers were laid off and poverty was strife. Not only were the people in disarray but the political parties were as well. Instead of helping each other they instead turned to bickering and fighting and parties such as Adolf Hitler's Nazi party were on the brink of bankruptcy and not being able to run for chancellor. Earlier in the year, Gustav Stresemann the German foreign minister had said: "The economic position is only flourishing on the surface. Germany is in fact dancing on a volcano. If the short-term credits are called in, a large section of our economy would collapse". How right he proved to be.

The Great Depression was a disaster for the people however political parties saw this as an advantage to gain support and a following. Hitler's Nazi party, 4 years after being nearly bankrupt, used this opportunity and went on to rule Germany.

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