Social Studies: The Great Depression

Hi there,

Today in Social Studies, we launched into looking at the topic of The Great Depression. We were set a research task about it and answering the 3 questions in our blog using the Lawyer paragraph structure. 

Why was Germany hit the hardest during the depression?

This tragedy occurred in 1929, as the Wall Street Crash led to a worldwide depression. Germany suffered more than any other nation as a comeback of the loans they were taking from America since 1924 stopped. This has caused Germany's economy to collapse. A major factor was the Treaty of Versailles, which was supposed to settle outstanding debates following the closure of hostilities in World War 1. This provision effectively prevented many German industries from selling their goods in foreign markets. There were also many phases and challenges they faced which were an industrial crisis, factories were shut down, exports were reduced, farmers were badly affected and speculators took back their money from the market. 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. As a result, the country was cruelly affected by the great depression.

Explain what Germany had to agree to by signing the Treaty of Versailles?

First of all, the Germans initial priority was to keep the peace by signing the Treaty. The Treaty of Versailles is a civil peace agreement sig ned by the victorious Allied powers (Great Britain, France, Russia, Italy, Romania, Japan, United States) and Germany. Germany had to agree to the terms and reservations noted in the Treaty of Versailles. The Treaty of Versailles held Germany responsible for starting the war and urged harsh penalties in terms of loss of territory. Moreover, the massive reparations cost 32 billion gold marks (33 billion US dollars) which took 92 years to pay off (1919-2010) because of the Great Depression. Although the Germans found the treaty unfair, they weren’t allowed to participate in the conference and didn't have a say in the creation of the treaty.

How was NZ affected by the depression?

When the great depression occurred, the effect on New Zealand was not immediately apparent. However, by the end of 1930, businesses and manufacturers were feeling the flow-on effects. Requests for their goods and services fell, as well as the prices they charged. Unemployment increased to 12% of the registered workforce in 1933, and those who still have their jobs often found their wages slashed by as much as 20%. There was also an eruption of protest among urban businessmen and professionals in New Zealand. In the first six months of 1932, Auckland and Wellington were rocked by a series of unemployed riots. The number of protest organisations that formed during the Depression was ranging from the National Unemployed workers movement. In the end, George Willam Forbes as Prime Minister (1930-1935), has led NZ out of the harsh economy of the 1930s Great Depression.