How The Stock Market Crash Of 1929 Led To World War II

World War II, that took place between 1939-1945, was a massive bloodbath in the entire world¡¯s history, with millions of people losing their lives across the globe. While most of us must be knowing the two opposing military alliances- Axis powers (Germany, Italy and Japan) v/s the Allies (France, Great Britain, United States, the Soviet Union, and to some extent China, one lesser-known aspect of World War II remains untold to many. The Stock Market Crash of 1929 of the US, which happened almost after a decade of World War I (1914-1918), was amongst the triggers leading to World War II. Wondering how?

How it started?

It all started after the end of World War I, when, as per the Versailles Treaty (which helped end World War I, and involved the Germans and other Central Powers to forcefully take the blame for World War I, thus implying loss of territories, reduction in military forces, and reparation payments to Allied powers), Germany had to pay a huge compensation as remunerations for the war. This could only be paid as gold or foreign currency. And to pay this, Germany had to borrow huge loans from American Banks, which, coupled with gold depletion, led Germany to increase printing of its currency in an attempt to buy foreign currency. This caused hyperinflation in the year 1923.

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Even a loaf of bread began to cost more than a billion Reichsmark (Germany¡¯s then currency). People had to burn cash since firewood was costlier! Kids began to play with kites made of money and women made dresses of bank notes, clearly signaling how worthless the currency had become practically.

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The Stock Market Crash

Then in 1929, things changed, but for the worse. After the stock market crash of the US, the American banks called back their loans, and Germany¡¯s already struggling economy, collapsed. Unemployment and poverty skyrocketed, and with no option left, people became desperate.

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The rise of Nazis

The Nazis took advantage of this situation and even people at this desperate point readily accepted the rule of Nazis and even their extremist policies.

Before 1929, the Nazis had already lost 2 elections and secured barely 3.5% votes. But in 1933, the Nazis won 35% of votes, which were enough to form a coalition government.

Then, what followed was a meticulously planned antisemitic propaganda led by the minister Dr.J.Goebbels. The Nazis had absolute monopoly over the media Radio production almost quadrupled to spread the Nazi propaganda.

Hence, all it took was one stock market crash, that too of another country, which catalyzed the conditions to make an entire nation commit one of the worst genocide on Earth, and engage in World War II. The rest, as we know, is history, of how massive the destruction was.

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