All of these terms are what led Germany to economic and political instability in the years 1919-23. One of the terms of the treaty, which caused economic instability, were the reparations Germany had to pay for the war. The figure was set at £6.6 billion and undoubtedly Germany would not be able to pay this figure. The English economist, John Maynard Keynes, feared in 1919 that the reparation set would fundamentally weaken the economy of Germany with consequences for the whole of Europe. George Clemenceau aimed to cripple the German economy with the high reparations figure.
Great Depression World Wide The Great Depression gave Americans and people all around the world a hard time in their everyday life. This brought poverty, an increase of crime and suicide rates all over the country. Europe and Asia were also hit hard by the economic troubles the United States faced in the Great Depression. Cities all over the world suffered during the Great Depression and those that depended heavily on global industry suffered the most. As the timing of the Great Depression varied across the world, the average time was between 1929 to about the early 1940’s.
While the Treaty of Versailles certainly had significant impact on the Weimar Republic up to 1929, it cannot be solely blamed for its woes. Other major catalyst for the republic’s instability emerged throughout its existence. The republic was born into chaos; it faced significant issues before the Treaty of Versailles had even been signed. Internal factors that impacted on the Republic included an ineffective constitution and attempted coups by a number of groups. The invasion of the Ruhr and resultant hyperinflation also had a hugely detriment effect.
On the other hand, the anguished effects of WWI were still enduring in the Germanic collective memory. Many Germans perceived The Versailles Treaty, signed by the Allies in 1919, as a humiliation. The treaty contained a number of heavy impositions to Germany which were socio-economically unbearable to a once great and powerfu l nation. The amount that had to be paid to the Allies as war damage 2 made the Mark lost all its value, causing a hyperinflation so severe that the prices increased by over 100 times in just one year (Bresciani -Turroni, 1968.). The hyperinflation crisis, which was only solved in 1924, lasted enough time to ruin thousands of Germanic families, thus worsening the general feeling of rage against the treaty.
This was due to events like the devastating 1923 hyperinflation, and of course the Treaty of Versailles, which had tainted Weimar’s reputation from its inception. The Reichstag was in a constant state of flux as the parties struggled to create and maintain coalition governments, and this added to the public’s negative perception of a democratic republic. The economic slump from 1928-32 was undoubtedly responsible for the NSDAP’s rise in support, as it was the cause of social and political problems within Germany. Even prior to the Wall Street Crash in October 1929 the economy was in trouble – economic growth was uneven throughout the 1920s. Trade was in debt as imports exceeded exports; this was because Germany was
The detrimental effects of the war in America where Britain had been humiliated had caused all these problems. The American war had only just ended when Pitt came to power. He therefore had to deal with the after effects that this war had caused, for example, Britain had suffered a loss of trade and an economical decline. Pitts task was to achieve stability within the country. He had to try and balance immediate revenue needs for debt reduction against overtaxing commercially important activities.
Many historians have traced the causes of World War II to problems left unsolved by World War I (1914-1918). World War I and the treaties that ended it also created new political and economic problems. Forceful leaders in several countries took advantage of these problems to seize power. Many aspects led to the eventual rise of WW2, beginning with the Treaty of Versailles in 1919. The war ending treaties were worked out in haste by countries with opposing goals and failed to satisfy even the victors.
Triumph and Tragedy Throughout its existence, the United States has always managed to overcome the hardships of tragedy through recovery and reform. Over the past 250 years, America has struggled through woes of both combative and economic natures. The American Revolution and the Civil War both impacted the country’s politics and governing greatly, while the Panic of 1873 and the Great Depression caused a reform in banking and economic processes. Since the birth of our nation, there have been numerous conflicts with foreign powers. The first began even before our independence, and was also the cause of it.
There are several reasons why America needed the Great Depression to solidify their foundation. There are several reasons why the worst economic depression in the history of the US occurred. There is not one specific cause but many small problems combining to have an effect as great as the depression. One cause was the Stock Market crash of 1929. Stock’s had dropped due to the time period before, known as the “Roaring Twenties” due to WW1, many people had an abundance of wealth which
What were the causes and consequences of the hyperinflation crisis of 1923? Germany’s economic problems came to a peak in 1923 when hyperinflation set in, meaning that prices soared whilst money values plummeted. This situation had been slowly but surely coming to a crescendo in the past months since the war started, but no one noticed until they were in the pinnacle of it. There are many factors that caused this inflation, and ultimately the consequences that followed. There were long term causes of the hyperinflation caused by the coast of war.