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The 1920’S, Though It Was Hardly An Easy Time For Any Country,

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The 1920’s, though it was hardly an easy time for any country, it was still a time where people remained optimistic and hopeful. Many historians call this era both the age of anxiety and the period of hope. Some factors that influenced the age of anxiety are the Treaty of Versailles and the Great Depression. The Dawes Plan and the Treaty of Locarno however, helped promote the period of hope. All the events following the World War 1 effected various countries one way or another.
Europe faced severe economic and social challenges after World War 1. Although the war ended in 1918, Europe did not even begin to rebuild their economy until 1922. One of the major reasons for anxiety in Europe was the Versailles Treaty. The Versailles Treaty …show more content…

After Germany’s first payment of two and a half billion marks both Germany and France realized that Germany just could not pay the reparations on time. Germany was facing financial problems making it impossible for them to pay. Instead of reacting in a more peaceful manner, France was outraged and decided to make things even worse for Germany. The French took over Ruhr Valley. Ruhr Valley was Germany’s chief industrial and mining center. Germany was now without Alsace, Lorraine, and now the Ruhr Valley causing even more economic disparity. However, this move hurt not only Germany but also France. France was now sending over its men to work in the Ruhr Valley, taking away money and people from their own country. The German’s turned to printing more money causing inflation. They started a policy of passive resistance which was largely financed by printing more money intensifying the inflationary pressures. In 1914, the German mark was 4.2 marks to one dollar. By 1923 the German mark was 4.2 trillion marks to one dollar. Germany was in serious trouble. The people were paying with barrels of money for one loaf of bread. Germany’s inability to pay their reparations caused countries who were counting on them to also have financial problems. Although the Treaty of Versailles caused a serious financial crisis, the Great Depression would soon cause similar results.
The stock market crash in America during the end of the 1920’s caused a significant

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