WORLD HISTORY

Detailed explanation-1: -Answer: 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 was largely dependent on loan from the USA. The Wall Street Exchange crashed in 1929, the USA withdrew the support from Germany.

Detailed explanation-2: -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.

Detailed explanation-3: -The most obvious consequence of this collapse was a huge rise in unemployment. Over the winter of 1929-30 the number of unemployed rose from 1.4 million to over 2 million. By the time Hitler became Chancellor in January 1933 one in three Germans were unemployed, with the figure hitting 6.1 million.

Detailed explanation-4: -The Great Depression severely affected Central Europe. The unemployment rate in Germany, Austria and Poland rose to 20% while output fell by 40%. By November 1949, every European country had increased tariffs or introduced import quotas.

Detailed explanation-5: -A second response to the Depression was fascism and militarism–a response found in Germany, Italy, and Japan. In Germany, Adolph Hitler and his Nazi Party promised to restore the country’s economy and to rebuild its military.

Detailed explanation-6: -The Great Depression is referred to as the greatest and also the longest economic downturn or recession in modern history. It started in the USA. After that, it had a rippling effect on the economies of the world. It is said that the Great Depression started with the USA stock market crash in October 1929.