The depression

In 1929, the American stock market crash triggered a global economic depression. Germany was hit hard, with American losses prompting demands for repayment of loans, leading to economic collapse. Bankruptcies soared, workers were laid off, and unemployment surged. Compounded by reparations from the Treaty of Versailles, Germany faced severe challenges. The government tries to act but the Weimar Constitution, with its careful balance of power, made firm and decisive action by the government difficult.