The Main Causes Of The Great Depression In Germany

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The Great Depression was triggered by a collapse in U.S share prices in 1929, after a decade-long economic prosperity. Even though this event’s main cause was in the U.S, the effects were felt all over the world. In Germany, the depression caused a great number of businesses to close, mass unemployment and caused public dissatisfaction towards the Weimar Republic, which then led to a dramatic increase in popularity for the extreme left and right wing parties. However, even though the Great Depression was a significant event on German history, this event is still one of many. The War guilt clause, article 231 states that Germany had to pay a sum of £6.6 billion as war reparations, Weimar Germany was allowed to pay in the form of raw materials as opposed to actual money. In June 1921, Germany had managed to pay its first installment of the reparations of 2 billion gold marks. However, in January 1923, French and Belgian troops had invaded the Ruhr (an industrial area in Germany) to ensure payments be made, mainly because at the time Germany simply could not afford to pay the reparations due to the already rapid devaluation of the German Mark. The troops had taken over industries such as steel mills, coal mines and other industrial zones. Those who would not cooperate would be imprisoned. The Weimar government responded to this crisis by ordering the works in the Ruhr to passively resist, in other words; to go on strike. This caused the French to bring in their own workers to
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