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The Nazis made valuable use of the time they had in parliament and became a strong party. When the Munich putsch failed in September 1, they learnt that they would have to try to gain power by lawful means. They used propaganda to gain support and also came up with a 5-point program that appealed to everyone.
Germany tried to pay the reparations by printing more money but when that failed, America gave them loans to ease the economic problems. At the time of the loans, America was financially secure but in 1 the Wall Street Crash sent America into depression causing them to recall their loans. Having to repay the money put Germany into greater financial difficulty and they had to try unpopular economic policies.
The Depression derived from the Wall Street Crash, when people rushed to sell their shares because they realized the companies were doing badly. Thousands of businesses and people were ruined. This affected Germany because America withdrew its loans and the German economy collapsed. Millions were left unemployed. The new Weimar government broke down and people were ready to listen to groups like Hitlers Nazis, who promised a strong government and a better way of life. People who had never been interested in politics before found themselves listening to extremist groups because the government had collapsed. The Depression was a tremendous piece of good luck for the Nazis, because it enabled them to get the majority of the vote in Germany (4.%).
During the Depression the German public was not so concerned with the detailed aims of the Nazis when in power. They just wanted a new government and leader who could help Germany from the great Depression.
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The Depression led to high unemployment because factories had closed down, and farmers and many businessmen could not sell their goods.
The reparation payment in particular caused great difficulties for the government and the people. When Germany failed to make a payment in 1, the French and Belgium army marched in and took control of the Ruhr, a key industrial area of Germany. The Germans responded with passive resistance but that again was expensive.
The Treaty of Versailles made it almost impossible for Germany to recover financially, largely because all Germany's colonies were taken and they were made to pay reparations. In order to try to pay the reparations, Germany started to print money and ended up with hyperinflation. The economic instability added to the political instability.
The Nazis cleverly delivered the idea that if they came to power there would be something for everyone. For example farmers were promised higher prices for their goods and shopkeepers were offered protection against big businesses.
The Nazis, now more organized and efficient, were ready for this opportunity to gain power and made promises of jobs and bread.
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