This page discusses the ways that different Germans responded to the problems caused by economic depression.

1. Governments’ and
voters’ responses to
the slump

2. Governments’ responses
Governments across the world –
not just Weimar Germany -
struggled to deal with the effects
of the Depression.
Many Germans believed the
government did not need to
intervene as the country had
overcome a 1926 economic
slump without state intervention.

3. This led to different proposals
about the German government
should do to maintain the
strength of the currency.
Suggestions included:
• Cut welfare spending
• Raise taxes
• Reducing/stopping
reparation payments

4. The German government found it
difficult to end the crisis.
The coalition nature of
governments made it hard to
agree actions. In March 1930 the
SPD government collapsed as they
could not agree on welfare cuts.
German governments also feared
that intervention could cause
hyperinflation.

5. Germans governments’ actions
were also restricted by outside
groups too.
Legal restrictions in the Dawes
and Young Plans meant the
Reichsbank could not simply
print more money.
Foreign investors also did not
want to lend to Germany as
they did not trust the currency.

6. Governments coped by spending
less money, including making
unpopular welfare cuts.
From 1931, the government
started spending more money
(in 1931 reparation payments
were suspended for a year),
including on public works
schemes and giving land to
peasants and workers.

7. German governments also
introduced protectionist
policies, although these arguably
made the situation worse for
Germany.
Protectionism is when a
government prioritises products
from its own country over those
bought elsewhere (imports). This
can be done using import taxes.

8. Protectionist policies provided a
certain benefit in that it helped
some German companies to hire
or retain staff.
However it resulted in
retaliatory policies when
foreign governments did the
same to German products, thus
reducing exports. Also, Germans
had to pay higher prices for
certain products.

9. Voters’ responses
The economic crisis –
especially unemployment and
falling wages – caused huge
anger amongst Germans.
As a result of this, many of
them began to lose faith in the
Republic and democracy,
leading to growing support for
extreme parties.

10. During the period of economic
depression there were five
national elections, and also
various state elections.
Each of them was held against a
backdrop of rising unemployment
and homelessness as workers
could not afford to live in their
homes, often moving into shanty
towns instead.

11. From July 1928 to December
1932, unemployment rose from
1.25 million to 5.75 million.
During this time, Nazi election
votes went from around 1 million
to c. 11 million.
Also in this period, the
Communist Party’s (KPD) votes
went from around 3.2 million to 6
million.

13. Extremist parties offered
simple messages which
attracted votes from desperate
Germans.
The Communists pledged to
take control of factories and
businesses in order to create
work for Germans. The Nazis
portrayed their leader Hitler as
the only man who could save
Germany.
‘Our last hope:
Hitler’

14. Weimar Germany had always
struggled to gain support from
most Germans.
The economic crisis saw the
concept of democracy lose even
more support. There was a huge
increase in anti-democracy
parties in the Reichstag, meaning
parliamentary democracy could no
longer function.

15. Historians’ views
• William Carr: “inconceivable” that Hitler could have ever come
to power without the effects of the world economic crisis.
• Detlev Peukert: The end of the Republic did not happen
overnight and was not the product of any single set of causes.
• Eberhard Kolb: The downfall of the Republic was the fault of
opponents that “destroyed it by unscrupulous methods.”
• Eric Weitz: The effects of war, Versailles, hyperinflation and
the Depression left Germans desperate for a solution by 1932.