Germany and the Depression, 1929-1933
In 1929 as the led to a worldwide depression. Germany suffered more than any other nation as a result of the recall of US loans, which caused its economy to collapse. Unemployment rocketed, poverty soared and Germans became desperate. This led to a chain of events that ended in the destruction of German democracy:
- With the government unable to win a majority in the , laws could only be passed by . As a result, not enough action was taken to tackle the economic and social consequences of the Depression and Germans increasingly began to look to the political extremes for answers.
- The Nazis benefitted from this the most, as a combination of policies with widespread appeal, a charismatic leader in Hitler and the violence of the helped make them the largest party in the Reichstag by the middle of 1932.
- In January 1933, Hitler was appointed Chancellor by President Hindenburg.
- Hitler quickly set about dismantling German democracy. He forced the passing of an Enabling Act through the Reichstag, which gave him unlimited powers for four years. He then eliminated any potential sources of opposition: other political parties, trades unions and even Ernst Rohm, the leader of the SA.
By the time President Hindenburg died in August 1934, Hitler was able to declare himself and had absolute power in Germany.
