Great Depression in South Africa

The Great Depression had a pronounced economic and political effect on South Africa, as it did on most nations at the time. As world trade slumped, demand for South African agricultural and mineral exports fell drastically. It is believed that the social discomfort caused by the depression was a contributing factor in the 1933 split between the "gesuiwerde" (purified) and "smelter" (fusionist) factions within the National Party and the National Party's subsequent fusion with the South African Party.

The sudden lack of demand destroyed prices on commodities that were profitable to many Afrikaner farmers. For example, the price of wool fell 75% between 1925 and 1933.^[1] A large portion of the agricultural industry were unable to repay mortgages on their over-capitalized farms. Thus, the National Party found itself losing favour with one of its largest constituencies—conservative, rural Boers.

South Africa was saved from a complete collapse by the gold mining industry—one of the largest and most advanced at the time—as the price of gold rose rapidly as investors sought a haven from the dead securities market. Growing gold exports compensated somewhat for the loss of other trade revenue. However, like the situation with the Boers, the National party lost support as the weak economy forced the gold corporations to replace white labourers with lower-paid blacks.

The National Party-led government staved off bankruptcy by raising taxes on imports, petrol and postage, amongst other things. This "unfair" taxation led to further dislike of the ruling government.

The coalition government between Jan Smuts and J.B.M. Hertzog was successful in 1933 partly because Smuts presented the public with a mock budget showing how South Africa's economic malaise could be lifted by floating the South African pound and removing it from the Gold standard, thus making exports more attractive, and creating a scenario in which undue taxation could be removed.

See also

• Economic history of South Africa
• Great Depression in the United Kingdom

References

Economy of South Africa
By province	Western Cape Gauteng
Natural resources	Mining industry Coal Agriculture Whaling
Services	Banks Gambling Tourism Ecotourism LGBT tourism Telecommunications Nuclear power Power stations
Economic history	Mineral Revolution Witwatersrand Gold Rush Great Depression Disinvestment
Affirmative action	Black Economic Empowerment Broad-Based Black Economic Empowerment Qualifying Small Enterprises Scorecard Exempted Micro Enterprises
Macroeconomics	National Treasury Taxation South African rand Reserve Bank Consumer price index Provinces by HDI
Misc.	Trade unions Corruption Companies JSE Limited Traded companies Krugerrand

Politics of South Africa
By province	Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga North West Northern Cape Western Cape
Political movements	Ideologies African nationalism Afrikaner nationalism Anarchism Anti-war Black consciousness Environmentalism Federalism Liberalism Libertarianism Pan-Africanism Trotskyism Political parties see South Africa political parties Other political organisations AfriForum Afrikanerbond Boerestaat Party CONTRALESA COSAS DLF DSM Earthlife Africa Keep Left Khanya College Koeberg Alert LGEP Occupy Oranjewerkers Orde Boerevolk PAVN SALSA SASCO South African Wine Initiative VAB WIVL ZACF
Trade unions and Social movements	see South Africa trade unions Equal Education Mandela Park Backyarders PASSOP Poor People's Alliance Abahlali baseMjondolo LPM Western Cape Anti-Eviction Campaign SJC TAC UPM
Law	see South African law
Terrorism	AWB Boeremag
Political culture	African Renaissance Alternative media Azania Corruption (Don't) touch me on my studio Freedom Charter Proudly South African Rainbow nation Renaming Tenderpreneurs Toyi-toyi Ubuntu UnFreedom Day Xenophobia Slogans "Amandla Ngawethu!" "No Land! No House! No Vote!" Books and periodicals African Communist Amandla ANC Today Biko I Write What I Like Long Walk to Freedom Molotov Cocktail No Land! No House! No Vote!
Other	Blikkiesdorp Corrective rape Crime Elections #FeesMustFall HIV/AIDS Labour brokering Land occupations Legacies of apartheid Lindela Marikana massacre Nkandlagate Political assassinations Political repression Protests Sexual violence Shack fires Third Force
Category

Political history of South Africa
Defunct polities	Kingdom of Mapungubwe (c. 1075–c. 1220) Dutch Cape Colony (1652–1806) Mthethwa Paramountcy (c. 1780–1817) Ndwandwe Kingdom (c. 1780–1819) Cape Colony (1795–1910) Zulu Kingdom (1816–97) Natalia Republic (1839–43) Natal Colony (1843–1910) Orange Free State (1854–1902) South African Republic (1856–1902) Griqualand East (1861–79) Griqualand West (1870–73) Goshen (1882–83) Stellaland (1882–85) Nieuwe Republiek (1884–88) Upingtonia (1885–87) Klein Vrystaat (1886–91) Orange River Colony (1902–10) Transvaal Colony (1902–10) Union of South Africa (1910–61) Transkei (1976–94) Bophuthatswana (1977–94) Venda (1979–94) Ciskei (1981–94)
Events	1652–1815 Dutch settlement French Huguenot settlement Khoikhoi–Dutch Wars Xhosa Wars Battle of Muizenberg Battle of Blaauwberg Anglo-Dutch Treaty of 1814 1815–1910 Mfecane 1820 Settlers Great Trek Boer Republics Mineral Revolution Witwatersrand Gold Rush South African Wars South Africa Act 1909 1910–1948 Maritz Rebellion Rand Rebellion Great Depression 1946 African Mine Workers' Union strike Bantustans Apartheid era 1948 general election Apartheid legislation Internal resistance Coloured-vote constitutional crisis Defiance Campaign Congress of the People Freedom Charter Women's March 1956 1957 Alexandra bus boycott Sharpeville massacre 1960 republic referendum International isolation Academic boycott Disinvestment Sporting boycott Olympics Rugby union Rivonia Trial Tar Baby Option Durban Moment Border War Israeli alliance Israel–South Africa Agreement Soweto Uprising Weapons of mass destruction Project Coast Constructive engagement Church Street bombing 1983 constitutional reform referendum Rubicon speech Dakar Conference Third Force CODESA 1992 apartheid referendum Saint James Church massacre Bophuthatswana conflict Shell House massacre Post-apartheid 1994 general election Government of National Unity Reconstruction and Development Programme Truth and Reconciliation Commission Arms Deal Floor crossing African Renaissance Xenophobia Marikana massacre 2012 Western Cape farm workers' strike Nkandlagate 2014 platinum strike #RhodesMustFall protests #FeesMustFall student protests 2016 Tshwane riots
Political culture	Afrikaner Calvinism Baasskap Boerehaat Day of the Vow Greater South Africa Honorary whites Rooi gevaar Slavery Swart gevaar Uitlander Volkstaat
Defunct organisations	Civic and political organisations Afrikaner Bond Afrikaner Broederbond Afrikaner Party AITUP APO AVF BPC Black Sash CDA CTEG COD Congress Alliance COSG CP Dominion Party DP (1973–1977) DP (1989–2000) DPP ECC FA FD Genootskap van Regte Afrikaners GNP Het Volk HNP IDASA ID IP ISL Jeugkrag Johannesburg Reform Committee Labour Party (1910–1958) Labour Party (1969–1994) Liberal Party (1953–1968) NA NCP NIC NLP NNP NP NPP NRP NUSAS PFP Progressive Party (Cape Colony) Progressive Party PRP Radio Freedom Reform Party SABP SADECO SAIC SASO SAYCO SAYRCO South African Party (Cape Colony) South African Party (1911–1934) South African Party (1977–1980) TNIP Torch Commando UFP United Party Unionist Party Volksparty Workers Party WOSA Trade unions and social movements Afrikaner nationalism APF BCM FOSATU ICU MUSA NEUM PAWE SAAPAWU UDF Umkosi Wezintaba Paramilitary and terrorist organisations APLA ARM BBB Boeremag Greyshirts MK Ossewabrandwag Orde van die Dood SANF
Histories of political parties	African National Congress Democratic Alliance Pan Africanist Congress of Azania
Category

Reference:alphahistory.com Reference:historylearningsite.com Reference:Encyclopedia Britannica