Growth of extremism, 1928-32 (AQA GCSE History): Revision Notes
Growth of extremism, 1928-32
The path to political crisis
By 1929, Germany appeared to be making remarkable progress in recovering from the devastating effects of World War One and the early post-war economic troubles. The Weimar Republic seemed to be finding its feet, and many Germans were beginning to feel optimistic about their country's future. However, this period of relative stability was about to come to a crashing halt with an event that would reshape German politics forever.
The Wall Street Crash of October 1929 in the United States triggered a worldwide economic catastrophe known as the Great Depression. This event would prove to be the turning point that opened the door for extremist political parties to gain unprecedented support in Germany.
The contrast between Germany's apparent recovery in 1929 and the political chaos that followed demonstrates how quickly economic crisis can destabilise even seemingly stable democratic systems.
The devastating impact of the Depression
The economic crisis that began in America quickly spread across the Atlantic to Germany, creating a domino effect of financial disaster. The interconnected nature of the global economy meant that Germany, which had become heavily dependent on American investment, was particularly vulnerable to this economic shock.
Germany's heavy reliance on American loans and investment made it one of the countries most vulnerable to the Wall Street Crash. This economic dependence would prove to be a critical weakness that extremist parties would later exploit.
The chain reaction of economic disaster
When the Wall Street Crash occurred, American companies lost billions of dollars virtually overnight. Banks and businesses across the United States were ruined, leading to a worldwide depression that would last for years. For Germany, the consequences were immediate and severe.
The Economic Domino Effect: How America's Crisis Became Germany's Disaster
Step 1: Wall Street Crash occurs (October 1929) → American banks and businesses lose billions
Step 2: US stops lending to Germany → American creditors demand immediate loan repayments
Step 3: German businesses face impossible situation → Must repay loans while receiving no new investment → Also forced to pay increased taxes to German government
Step 4: German government financial crisis → Unable to borrow from US, government prints more money → Raises taxes significantly and cuts unemployment benefits → Reduces government workers' wages and eliminates jobs
Step 5: Mass unemployment and poverty → Millions lose jobs as businesses collapse → Families experience severe hardship and hunger
The United States, facing its own economic crisis, immediately stopped lending money to Germany and demanded that all existing loans be repaid. This created an impossible situation for the German government, which had relied heavily on American financial support during its recovery period.
German businesses found themselves in a desperate position. They were forced to pay back their loans to American creditors while simultaneously receiving no new investment from the US. To make matters worse, they also had to pay increased taxes to the German government, which was struggling to balance its own books.
The German government faced its own financial nightmare. Unable to borrow money from the United States, officials made the controversial decision to print more money to meet their obligations. They also raised taxes significantly and made severe cuts to unemployment benefits. Perhaps most damagingly, government workers had their wages reduced, and many lost their jobs entirely.
The human cost
The impact on ordinary German people was catastrophic. Millions of workers and farm labourers lost their jobs as businesses collapsed or were forced to downsize. Young people were particularly hard hit by the job losses, finding themselves with no prospects for employment or training.
With work scarce and government benefits slashed, families across Germany began to experience terrible poverty. The situation became so dire that by 1931, food distribution centres were set up in major cities like Berlin to help feed the hungry population. The contrast between the optimism of 1929 and the desperation of 1931 could not have been starker.
A bank panic in Germany in 1931 made the situation even worse, as people rushed to withdraw their savings, causing further financial instability and business failures.
The establishment of food distribution centres in major German cities by 1931 illustrates just how severe the economic crisis had become. This level of desperation created the perfect conditions for people to turn away from democratic parties towards more extreme political solutions.
Why the Depression fuelled extremist politics
The economic crisis created the perfect conditions for radical political movements to gain support. As people lost faith in the democratic system, they began looking for alternative solutions to their problems.
The failure of moderate democracy
Democracy itself began to appear ineffective to many Germans. The moderate parties in the Reichstag (German parliament) seemed unable to work together to solve the mounting problems facing the country. The Weimar government appeared so weak that the Chancellor was forced to ask the president to pass emergency laws, bypassing the normal democratic process.
This breakdown of normal political procedures convinced many Germans that democracy was simply not capable of dealing with the crisis they faced. People began to lose confidence in the political system that had governed Germany since 1918.
The use of emergency laws instead of normal parliamentary procedures was a clear sign that the democratic system was breaking down. This created a dangerous precedent that would later be exploited by extremist parties who argued that democracy was inherently weak and ineffective.
The appeal of extreme solutions
Different groups in German society turned to different extremist parties, depending on their social class and fears. Working-class people, facing unemployment and falling wages, were often attracted to the extreme left-wing party, the Communists (KPD). The Communists promised radical solutions to unemployment and appeared to offer hope for workers who felt abandoned by the system.
Meanwhile, many middle-class and upper-class Germans became terrified of the Communists gaining power and potentially seizing control of their businesses and property. These fears drove them towards the extreme right-wing party, the Nazis (NSDAP), who promised to protect them from Communist revolution.
Importantly, Germans from all sectors of society began supporting the Nazis because they offered what seemed like strong leadership. The Nazi Party promised to restore law and order, implement effective economic policies, and make Germany strong again - exactly what many people felt was missing from the current government.
Common Mistake to Avoid: It's incorrect to assume that only one type of person supported extremist parties. The economic crisis affected all social classes, leading different groups to support different extremist solutions based on their specific fears and interests.
The numbers tell the story
The dramatic shift in political support can be seen in the election results during this period:
Electoral Evidence: The Rise of Extremism 1928-1932
May 1928 (Before the Crisis):
- Social Democrats (SPD): ~150 seats
- Nazis (NSDAP): virtually no representation
- Communists (KPD): ~50 seats
September 1930 (Early Depression):
- Social Democrats (SPD): ~145 seats
- Nazis (NSDAP): ~100 seats (massive increase!)
- Communists (KPD): ~75 seats (significant growth)
July 1932 (Height of Crisis):
- Nazis (NSDAP): ~230 seats (largest party)
- Communists (KPD): ~90 seats
- Social Democrats (SPD): ~130 seats (declining)
These figures clearly show how the two most extreme parties in the Reichstag - the Nazis and the Communists - gained support during the Depression at the expense of moderate democratic parties like the Social Democrats.
Timeline of key events
- October 1929: Wall Street Crash occurs in the USA
- 1929-1930: US stops lending to Germany and demands loan repayments
- 1931: Bank panic hits Germany; food distribution centres established in Berlin
- September 1930: Nazi Party makes major electoral gains
- 1932: Nazis become the largest party in the Reichstag
Remember!
Key Points to Remember:
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The Wall Street Crash of October 1929 triggered the Great Depression, which devastated Germany's economy and led to mass unemployment and poverty
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The economic crisis created a chain reaction: US loan recalls → German business failures → government financial crisis → massive unemployment → social desperation
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Democracy appeared to fail as moderate parties couldn't solve the crisis, leading the government to rely on emergency laws rather than normal parliamentary procedures
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Different social classes turned to different extremist parties - workers often supported the Communists (KPD) while middle and upper classes feared communism and supported the Nazis (NSDAP)
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By July 1932, the two extremist parties (Nazis and Communists) had gained massive support at the expense of moderate democratic parties, with the Nazis becoming the largest party in the Reichstag