Global economic crisis

and Brüning‘s government, 1929-32

Lecture 11

17 April 2012

HIST2133.The Weimar Republic through Documents,1918-1933

The Crisis of Democracy, 1929-32:3 factors

1) Mass unemployment (≥ 6 million)+

2) Art. 53 of Weimar Constitution→ ‘Presidential government under Brüning► First step into an authoritarian regime► Weimar democracy already at stake

+3) NSDAP election results

= Successive dissolution of Weimar Republic

‘Black Friday’: 25 Oct 1929

• Collapse of NY Stock Exchange due to long US overproduction

• US credits to G redrawn + US protective customs • Depression tendency in G accelerated

= G industrial production decreased to 1903-4 levels

► Rapid decline of salaries & living standards

► Massive unemployment: 1,2 Mill. (1929) → 6 Mill. (Jan 1932)

Results

• Fall of Chancellor Müller’s SPD & DVP government over economic & social issues (Mar 1930)

► ‘Self-acquittal’ of SPD from power

• New CP Brüning government as ‘presidential cabinet’ appointed by Reich President (art. 53)

► Hindenburg’s concession to Brüning to make use of art. 48 (state of emergency) if needed

= Major turn in WR politics + power

Reichstag election, Sep 1930

Decisive break-through of NSDAP:• High voters’ turn out

• Decline of DNVP

• Voters from lower middle-class + various other strata of society

• Financial subsidies from big industry much less important than Hitler’s own charisma

NSDAP in Reichstag elections

1928 - 1930: • SPD 29,8 - 24,5 % • NSDAP 2,6 - 18,3

% • KPD 10,6 - 13,1 %• DNVP 14,2 - 7,0

%• DVP 8,7 - 4,5 %• DDP 4,9 - 3,8 %

July – November 1932• NSDAP 37,3 - 33,1 %• SPD 21,6 – 20,4 %• KPD 14,3 – 16,9 %• DNVP 5,9 – 8,3 %• DVP 1,2 – 1,9 %• DDP 1,0 – 1,0 %

NSDAP after re-founding in 1925

• Munich branch effectively party headquarter• Hitler’s claim for absolute leadership + personal

orders to sub-leaders ☺ ≠ Strasser’s bureaucratic structure ☻

• Hitler’s concept of SA as party force ☺ ≠ Röhm’s concept as military force ☻

• 30-36 districts lead by Gauleiter (district leaders) + local party branches leaders

• Special party organisations + professional associations as wider mass networks

NSDAP characteristics• Internal symbols of Hitler’s charismatic rule:

A) Super-power positionB) Embodiment of heroism + sacred mission +

greatness + devotion C) Decision-making as ‘action and example’ without formal limitations

• External symbols of Führer cult: A) Heil Hitler’, Hitler Youth, propaganda (Goebbels)B) Sub-leaders in ‘blood brotherhood’ with feudal

loyalty to HitlerC) Führer myth → ‘Hitler Party’

NSDAP agitation + propaganda

• Rites + symbols, parades of NS organisations• Rallies: 1926 Weimar, since 1927 Nuremberg• Election campaigns: Mass rallies, flags, films, Hitler’s flights

through Germany

= Omnipresence, actions, dynamism, technical modernity, H’s charisma → Movement of the ‘Young-and-fresh’

= Flag consecrations, martyr cult for fallen Nazis, oaths for loyalty + sacrifice, terror + attacks on political

enemies → ‘Fighting Movement’

► Actionist ‘movement’ style + irrational heroism ≠ rational discourse, compromise, pluralism, democracy

Hitler’s Way to Power:8 explanations

• Political: Versailles Treaty• Economic: Economic crises• Institutional: Weimar constitution• Sociological: Lower middle class • Ideological: Authoritarian tradition• Marxist: Necessary crisis of capitalism• Mass psychology: Propaganda• Personality: Hitler

Brüning government Oct 1930-May 1932

• Over 40% of Reichstag deputies from NSDAP + KPD + DNVP after Sep 1930 elections

• No coalition possible between pro-Republican parties due to ideological divisions

• No new election wished due to anticipated further rise of NSDAP + KPD + DNVP

→ Toleration of Brüning government by SPD: “Brüning the lesser evil than Hitler”

Brüning’s deflation policy

• Strong cuts in government’s spending esp. in civil service

• Massive increase of + introduction of new taxes

→ To raise competitiveness of G products abroad

→ To demonstrate to Allies willingness to pay reparations

= Deflation policy with clearly foreign policy intentions

Results• After major bank crisis → G’s severe

financial crisis (spring 1931)☺ Final end of all reparations (Jun/Jul 1932)☻ No end of economic crisis

→ Deflation policy cuts government expenditures in economy + lowers buying-

power of people= Self-destructive mechanism ≠ J.M. Keynes’

idea of temporarily expanded public debts

Economic crisis 1931-2

• Huge unemployment• Decrease of unemployment subsidies• More people receive only welfare subsidies

= No active government plan to fight but only to manage crisis

► Strong decline of trust in government► Brüning’s public appeals no longer believed► Hopes faded for improvement of situation

Presidential elections 1932• Pro Hindenburg: SPD, Centre Party, BVP, DDP,

DVP (not DNVP)• No absolute majority in 1st round: 49,6% for

Hindenburg, 30,4% for Hitler• Absolute majority in 2nd round: 53% for Hindenburg,

36,9%

= Hindenburg regarded lacking support of DNVP as ‘personal humiliation’

→ Increasing lack-of-trust in Brüning’s political skills