What economic impact did the Great Depression have on Germany?

The Great Depression had a profound economic impact on Germany, particularly characterized by widespread financial devastation for bankers and businessmen. The stock market crash of 1929, followed by a global economic downturn, significantly disrupted Germany’s already fragile economy, which had been struggling with the reparations from World War I and hyperinflation in the early 1920s.

Many banks failed, and as credit dried up, businesses that depended on loans found themselves unable to operate, leading to bankruptcies. Industrial output plummeted, unemployment soared, and many individuals who had previously been prosperous faced poverty. The crisis eroded public confidence in the economy and contributed to a political environment ripe for radical movements.

This answer reflects the harsh reality that many influential figures in the banking and business sectors suffered catastrophic losses, leading to social unrest and contributing to significant changes in the political landscape of Germany in the years following the Great Depression.