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.
One thing the Germans were not happy in the treaty of Versailles is the War Guilt Clause, take blame for the war. Because of this they had to the reparation to the big three. The German government didn’t have the money to pay for the reparation as the country just lost a war and the factory are destroy and the environment is in a poor state. So then the USA banks lend Germany government loans. Its was all going well as Germany was getting in a better state and they are paying their reparation until 1929.
German's currency became worthless. The impact of hyperinflation was huge; People were paid by the hour and rushed to pass money to loved ones so that it could be spent before its value meant it was worthless. Because the mark became virtually worthless, people had to shop with wheel barrows full of money. Bartering also became common - exchanging something for something else but not accepting money for it. Bartering had been common in medieval times which show how people resorted to previous looked down upon activities.
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.
Their plan was to use the money they were going to receive from Germany and Austria, but the Central powers never followed through. Financial collapse seemed everywhere, spreading like wildfire. In May 1931, the largest bank in Austria even collapsed. It was evident that the Depression had taken its toll. In 1930 President Roosevelt won election and started the New deal in hopes of turning American strife around.
What Evans means by this is that the desperation of the people led them to polarising their votes and seeing radical leaders like Hitler as a solution to the mess that Germany had become. Hitler took advantage of this, and from there was able to play a huge role in the collapse of the Weimar Republic. The economic strain that Germany was placed under was also a major impact of the Depression on the collapse of the Republic. Firstly, the Depression had the obvious impact of the debt rising and the banking crises however, there were a number other impacts. Germany relied heavily on international trade for resources; almost one third of their resources came from overseas.
Isaac Bernstein Mr. Cooper US History 12 March 2013 What Caused the Great Depression? The Great Depression, which lasted from 1929 to 1940, was caused by over-production and Americans gambling with their stocks. The environment from the twenties drastically changed from being a “roaring” time period, to the thirties, which were filled with depression. America went from spending money, going to baseball games, and buying fancy clothes, to unemployment, severe debt, and living off food stamps. What happened to America?
Known also as Black Tuesday, October 29th left stockholders shattered with recorded losses reaching $40 billion dollars (Kelly, n.d.). Many banks and financial institutions began collapsing which led to irretrievable, uninsured deposits and savings. Fearing further loss, people began spending less which led to a decrease in production and an increase in unemployment. As companies began to fail, the government devised the Smoot-Hawley Tariff in order to protect American businesses. The Tariff placed high taxes on imports leading to a decline in international trade.
10th grade Social Studies assignment The failings of the democracy in Germany between 1918 and 1923 Why was the new democratic system in Germany unpopular by 1923, and how was Hitler able to take advantage of that unpopularity? After their defeat in the First World War, Germany and its government faced many harsh consequences which had a great impact on the entire country and its political system. Each consequence created a substantial change in German history which made a chain of events that led to the rein of Adolf Hitler. Because the new democratic system proved to be unsuccessful, the people of Germany blamed their government and after that, things began to get chaotic and everyone suffered. The problems began after the 1st World War, and after the German government signed the papers at the Treaty of Versailles, agreeing to its conditions and punishments, the government was very much resented by the people.
American businesses lost vast amounts of money and to repay the debt they asked German banks to repay the money they had borrowed. Peoples vote turned to leaders who blamed reasons for the Depression. The Nazi's The Weimar Republic was not to blame for the huge economics problems Germany were in at the time. Though to stop hyperinflation reoccurring the Chancellors raised taxes, cut wages and reduced unemployment