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Economic problems of the weimar republic
Economic problems in weimar germany
Economic problems of the weimar republic
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According to Document 2 “In the period following the end of World War 1, Germany experianced a disastrous perioid of inflation. The German governemnts method of financing the war by borrowing heavily and printing large quantities of unbacked currency began th inflationary spiral. This lead to political violence.” The german economy was in ruins at the time, one us dollar was equivilant to 4,200,000,000,000 German marks at one point. This helped Hitler Rise to power because the people felt that their economy was very very weak because of the government, and they wanted a new upgraded government.
Inflation eventually peaked at a rate of over 305 percent in 1921, drastically reducing the value of the German currency and leading to a severe economic crisis. Due to these high expenses, Germany experienced inflation of almost 100,000,000%, making it necessary to employ wheel barrels of Marks in order to purchase bread (Document 6 and 7). At the height of the crisis in 1923 German currency had become completely worthless, making it difficult for the country to pay its debts. One U.S. Dollar was worth 4 trillion German marks (Document 6).
Hyperinflation became so grave that it became more economically viable for German citizens to burn German Marks to fuel their furnaces instead of buying real fuel, as four trillion German marks were equivalent to one U.S. dollar (Doc. 6-7). These economic troubles did not stay contained in Germany, for Germany consistently defaulted on its payments to countries relying on German reparations to keep their economy afloat, resulting in many other large European countries falling into extreme debt (Doc. 6). The Treaty of Versailles had no plan to preserve the economy of Europe (Doc. 3), rather only a very flimsy idea to make Germany fix everything, showing once again that its impacts did far more harm than good on the overall economic and political stability of Europe. The Treaty of Versailles also had no plan to stabilize the newly created countries of Europe or make Germany and its allies “into good neighbors” (Doc. 3, 8), all of which led to extreme instability and unpredictability in Europe, as well as the German government itself, a mistake which paved the way for the rise of Hitler and the Nazi
[Doc 1]. This responsibility forced Germany into massive debt, as they had to pay large sums of money while their economy was still in ruins from the war. This plight initially led to the weakened economy described
The debt cycle continued on between Germany, Great Britain, France, and the United States until the Great Depression caused the economy to collapse. Germany made an abortive attempt to solve the problem by printing more money to pay off its debts. Consequently, this worsened the situation; hyperinflation in Germany devastated the lives of the entire German population, people were helpless and in poverty, many even used the worthless currency to cook and make fire (“Konwinski Binder”). In fact, Germany was not able to pay off its war debts until a century later (Smith), emphasizing the lasting impact of war. Not only did the economic crisis cause the German citizens to panic, when Kaiser Wilhelm II fled to exile after the Treaty of Versailles was signed, an unstructured political organization spread fear throughout Germany.
To try and stabilize the economy, German officials began printing money, but this only caused inflation making the money almost worthless. This caused widespread anger and humiliation throughout Germany (EQ - Doc C.). In conclusion, the Treaty of Versailles contributed to the start of World War II because it favored the Big Four (USA, France, Britain, and Italy), it took land from Germany and established demilitarized zones, limited the German army, and forced Germany to pay reparations. With all these factors pressing on the German people, people began wanting to get back at the other nations, and restore Germany and all of its
One of the main factors was hyperinflation. This is when prices increase while value of money decrease. According to the United States Holocaust Memorial Museum, hyperinflation caused a depression, which undermined, “the stability of the German economy.” Jobs were hard to find and didn’t pay enough even when you had one. This caused the people of Germany to be in desperate need of help from anyone who could offer it.
According to Mcelvaine (2004), the crash accelerated the downward spiral of the economy wiping out the paper wealth investors and altering the previously euphoric outlook of so many people into one pessimism, which made them more cautious of their spending and their investments and due to this they needed further demand. The money supply had major effects on the economy as well. If there is no money, then prices would have to fall and this could cause deflation, which is what caused the Panic of 1893, before the Great Depression took place. Germany dealt with hyperinflation and this contributed to the Depression. One way was that it wreaked havoc on the German economy and several European countries and they never fully recovered (Mcelvaine, 2004).
In the aftermath of World War 1 (WW1), many affairs led the Germans looking for a way to return Germany to its previous acclaim. This paved the way for Adolf Hitler to become the individual to lead the Germans out of this state of depression and havoc. Many things were taken from the Germans due to WW1 and this enraged them. Later on, entering the depression causing Germany to lose wealth and have the financial burden of assessing its people. Not only did they have to find a solution to this economic crisis but Germany had to pay the allied powers a sum of money causing them to be deeper in the economic crisis and have an enormous debt.
The average German worker had supported Adolf Hitler and the Nazi Party because both Adolf Hitler and the Nazi Party had appealed to what the average German workers had wanted. After World War I, Germany had experienced a hyperinflation as a result of all the war reparations. The entire German population had become crazed as they were trying to make money in order to purchase food and other basic necessities.
By Hindenburg and Von Papen giving Hitler the role of Chancellor – thinking that Hitler can be easily manipulate. Furthermore, without the Great Depression and its world-wide economic crisis, the Nazi party would have remained a small political group without much of a say in the government like it had been from 1924 – 1928. During this period, Germany was slowly but surely recovering from the hyperinflation period. The Nazi fed off this Depression a gain a foothold in the
Finding truth in the news these days is quite difficult. The supposed to be news channels are giving biased opinions on topics. Most people now, get their news through social media. So how do we find the truth?
However German government printed more money to pay off the debt but it caused inflation. The government had 300 million papers and work 24 hours a day to pay a huge amount of debt. Germany wasn’t earning money properly, so it didn’t affect their wealth, which means they were still poor while they are keep making money. So prices of goods and education and services rose quickly. So many people didn’t go to the hospital, because it was too
American screenwriter, Steven Spielberg, once said, “People have forgotten how to tell a story. Stories don’t have a middle or end any more. They usually have a beginning that never stops beginning.”. Steven Spielberg, adds such a uniqueness and artistic value to all of his films. He constantly leaves the audience wanting more.
This was extremely harsh because they were already experiencing economic problems. The payments were around 5% of Germany’s national income. As Germany could not afford to pay this, they had to borrow allot of money from the USA. This led to currency decline, which then led to hyperinflation.
