Economic Crisis

Economical crisis as a path to power

After World War One Germany was doomed to bankruptcy.  The people of Germany had lost the Kaiser and lost a humiliating war.  They were in huge debt and the Allied Countries were showing no signs of mercy.  Hitler was just what Germany needed.  A strong leader to carry them through the hard times.

The treaty of Versailles left Germany with war reparations fees costing them a staggering 300 billion dollars.[i] It was impossible for Germany to pay this back.  When France realised that Germany wouldn’t be able to pay their debt, French troops with the support from Belgium and Italy, marched into the industrial district of the Ruhr, and got hold of almost all German goods. [ii]

Adding to the economical problems that Germany suffered form their  war debts, the country was also affected by the world wide financial crisis that started with the stock market crash in 1929.[iii]  Banks were closing by the hundreds all around the world, leaving to the disappearance of 140 billion dollars.

A combination of these two financial developments led to a decrease of production in Germany and huge unemployment.  Factories closed down, leaving thousands of Germans on the street, unable to pay their bills.  The depression started. [iv] Soon the country suffered of hyper-inflation and the German mark reached the exchange rate of a trillion to the dollar. [v]

Hitler saw all this as an opportunity to rise to power.  It is almost 10 years since the   failed beer hall putsch and Hitler has had a lot of time to think. [vi]  Instead of attempting to overthrow the government violently, this time he wanted to take a slower approach towards it all.  As unemployment rose, so did the Nazis popularity.  Hitler used people’s dissatisfaction to his advantage and was able to make the Nazi party grow 17 times its original size. [vii]  Hitler visualised a new Germany, and at the time, it seemed, he was the ticket to a fresh, new start.  With Hitler’s new found popularity he became Chancellor in 1933. [viii]

After Hitler won the elections he made it clear that he hated the Jews.  He blamed almost everything on the Jews, including Germany’s loss in WW1. [ix] He used them as scapegoats to the financial crisis and the unemployment.

He used propaganda and his speech abilities to plant his ideas in the minds of the Germans.

Hitler’s charisma helped him broaden his appeal but his rise to power would never have been possible if it wasn’t for the economical situation that was passing through Germany at the time. 

Sources

[i] Pg1 http://history-world.org.ww3.htm

[ii] Information provided by Mr. Watson

[iii] Pg1-2 http://www.pbs.org/fmc/timeline/estocckmktcrash.htm

[iv] Pg 7 http://history-world.org.ww3.htm

[v] Pg 3-4 http://history-world.org.ww3.htm

[vi] Pg 1 http:historyplace.com/worldwar2/riseofhitler/begins.htm

[vii] Information provided by Mr. Watson

[viii] Information provided by Mr. Watson

[ix] http://www.spartacus.schoolnet.co.uk/GERantisemitism.htm