Q. 214.3( 17 Votes )
What were the eff
The German economy was the worst hit by the economic crisis caused by the Great Economic Depression (1929-1932) in the USA. German investments and industrial recovery was largely dependent on loans from the USA.
When the US stock market crashed in 1929, the USA withdrew financial support from Germany.
The following points state the impact/
effect of Great Economic Depression in Germany.
(i) By 1932, industrial production was reduced to 40 per cent of the 1929 level.
(ii) The number of unemployed was 6 million. Unemployment reached nearly 30 per cent in 1932. Unemployment forced the youth to get involved in criminal activities.
(iii) The economic crisis created deep anxieties and fear in people. As businesses got ruined, small businessmen, self-employed and retailers were filled with the fear of being reduced to the ranks of workers or unemployed. Big businessmen were also in crisis.
(iv) The middle classes like salaried employees and pensioners found their savings wiped out due to the currency losing its value.
(v) The large mass of peasantry was affected by a sharp fall in agricultural prices.
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