Question

what were the effects of the great depression in germany

Answer 1

The Great Depression was a long and extensive economic crisis, affecting most developed nations in the early and mid 1930s. It was triggered by a stockmarket crash in New York City in 1929, then soon spread beyond the United States, crippling the economies of dozens of nations. The impact of the Great Depression was particularly severe in Germany, which had enjoyed five years of artificial prosperity, propped up by American loans and goodwill. Unemployment hit millions of Germans, as companies shut down or downsized. Others lost their savings as banks folded. The dire conditions of the early 1930s led many German voters to abandon mainstream political parties and look to more radical alternatives, such as Adolf Hitler and the Nazi Party.
The prelude to the Great Depression was an economic bubble in the United States, caused by years of prosperity and inflated confidence. The 1920s had been a boom decade for American companies, which tallied up record production figures, skyrocketing sales and millions of dollars profit. These profits were passed onto shareholders, who also benefited from sharp increases in share prices. Thousands of Americans rushed to take advantage of the share market, many using their life savings or borrowing against their assets to take advantage of the boom. But the dramatic increases in profits and share prices could not be sustained forever. By 1928 there was considerable over-production in many industries, leading to declining sales and falling profits.

Answer 2

The most direct consequence to Germany was that US bankers began to call in their loans, devastating the fragile German economy. Businesses built up with those loans began shedding workers to cut costs now that they were strapped for cash, unemployment rose, and Germany entered a period of economic uncertainty creating a desperate situation allowing Hitler and the Nazi Party rise to power with grand speeches built up around a platform promising to restore the country.