Why parliamentary government collapsed in the wake of Wall Street crash?

GRAND COALITION 1928-30.

• Led by Hermann Muller- contained SPD, DDP, Centre and DVP.
• They had 301 out of 491 seats (Nazis less than 3% of vote-1928).
• Parties driven by self-interest and inter party divisions e.g. SPD divided between moderates & left wing
• Muller- well-intentioned but lacked assertiveness and dynamism of a great charismatic leader.

WHY DID IT COLLAPSE?
• Dec 1929- vote of no confidence in government- however Muller survived.
• Big problem- Social Security Payments
• Mar 1930- Muller asked Hindenberg to use Article 48 to pass financial bill- Hindenburg refused.
• Increase in unemployment caused a large deficit in the national insurance scheme.
• SPD wanted to increase insurance contributions from 3% to 3.5%- DVP opposed as this would have hit the employers.
• Muller resigned 27th mar 1930 - SPD were never in government again.

THE APPOINTMENT OF HEINRICH BRUNING.

• This was critical in marking the end of parliamentary government.
• Bruning failed to inspire masses of people and his politics was seen as harsh.
• July 1930- proposal of tax increases & reduction in government expenditure.
• It was rejected by Reichstag (256 votes to 193 votes)- passed by Article 48.
• The Reichstag challenged the decrees legality, voting for its withdrawal.

Untitled Slide