Why did unemployment rise so dramatically in Germany after 1929?

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brettd eNotes educator| Certified Educator

Germany was an industrial manufacturing country during that time, as many were.  While Germany had had a rough go of it economically in the 1920s post World War I era, they were recovering by 1928, and things were looking up.  Germany actually had the largest industrial base outside of the United States by that time.

Manufacturing economies, though, like those in Germany and the US, were especially vulnerable to downturns in business, and when the stock market crashed and the ripple effects went through the world economy, Germany was hard hit. Germans' economic desperation made it easier for someone like Hitler to come to power through popular elections.

pohnpei397 eNotes educator| Certified Educator

The Nazi Party was able to come to power in Germany largely because of the Great Depression and the economic problems it caused for Germany.

When the Great Depression hit the world economy, the German economy was particularly harmed.  This was because the economy of Germany was very dependent on foreign countries.  It depend on exports to foreign countries and on loans from the United States in particular.  When the Depression came, these sources of income dried up, and unemployment went up greatly.

The rise in unemployment helped bring the Nazis to power because people were desperate for change.