Do finan­cial cri­ses radi­cal­i­ze voters? We ana­ly­ze a cano­ni­cal case – Ger­ma­ny during the Gre­at Depres­si­on. After a seve­re ban­king cri­sis in 1931, cau­sed by for­eign shocks and poli­ti­cal inac­tion, radi­cal voting increased shar­ply in the fol­lo­wing year. Demo­cra­cy col­lap­sed six months later. We coll­ect new data on pre-cri­sis bank- firm con­nec­tions and show that ban­king distress led to mark­ed­ly more radi­cal voting, both through eco­no­mic and non-eco­no­mic chan­nels. Firms lin­ked to two lar­ge banks that fai­led expe­ri­en­ced a bank-dri­ven fall in len­ding, which cau­sed reduc­tions in their wage bill and a fall in city-level inco­mes. This in turn increased Nazi Par­ty sup­port bet­ween 1930 and 193233, espe­ci­al­ly in cities with a histo­ry of anti-Semi­tism. While both fai­ling banks had a lar­ge nega­ti­ve eco­no­mic impact, only expo­sure to the bank led by a Jewish chair­man stron­gly pre­dicts Nazi voting. Local expo­sure to the ban­king cri­sis simul­ta­neous­ly led to a decli­ne in Jewish-gen­ti­le mar­ria­ges and is asso­cia­ted with more depor­ta­ti­ons and attacks on syn­ago­gues after 1933. 

Quel­le /​ Link: From Finan­ce to Fascism: The Real Effect of Germany’s 1931 Ban­king Crisis