Tom Godlewski
ECO 220
Dr. Maskay
November 25, 2014
The Economic Downturn of the Weimar Republic After WWI War over the past two centuries has evolved faster and more dynamically than any other period in human history. The advent of air forces, automatic weapons, chemical warfare and a slew of other malevolently created weapons define one of history’s deadliest wars; World War One. World War One was the first time humankind experienced carnage on that level. Cities, infrastructure and most importantly, a large portion of a generation was lost on the fronts of Western Europe. All of these things have one thing in common as well; they all cost massive sums of money. The Treaty of Versailles placed the astronomical sums required for reparations on the losing side, the people of the Weimar Republic (Germany), lead to a massive and sudden debt being thrust upon this Western Power. This economic downturn caused one of the worst cases of hyperinflation in history, as the Germans, were printing money in order to try and pay off these massive debts. To secure the peace, the Weimar Republic accepted punishment inflicted on them by the Allies, including mass payment of war reparations, reduction of territory, and acceptance of the "war guilt" clause. This led to Germany creating a new currency with the help of foreign investment under Gustav Stresemann after the economy came close to entirely collapsing. One must first analyze what was lost by Germany during what has been described as
After World War II Germany was left devastated and in ruins. There had been massive destruction of the country’s infrastructure (Bessel 2011), it lacked political structure and economic activity had plummeted. There was a scarcity of food, fuel and housing and Germany was in no condition to clothe or feed its population (O’Dochartaigh 2003).
Germany’s loss of territory was a major cause of the war. In document A the map referencing German territorial losses depicts the land lost after World War I. The Germans were forced to return Alsace-Lorraine back to France, the Polish Corridor was given to Poland and Danzig became a free city. Germany lost their territory along with the resources within the area such as coal and iron. Because of their loss in resources, their economy continued to decline as their reparations remained unpaid. In addition, in document A, Adolf
Document A,Germany lost some valuable land. They also lost some pieces of land that pretty much cut off a part of their country. They lost Alsace and Lorraine, with that the Germans Lost 40% of their coal production.This document shows that the loss of land was also a big part that helped start World War II because it shown all the land that Germany lost. With that land that they lost they also lost a lot of valuable resources. They lost some
Germany’s economic situation plummeted after World War I because of the reparations the country paid, along with the disarmament of its military and cease on all military production (Garrison). Germany was desperate for help,
Germany emerged from World War I with huge debts incurred to finance a costly war for almost five years. The treasury was empty, the currency was losing value, and Germany needed to pay its war debts and the huge reparations bill imposed on it by the Treaty of Versailles, which officially ended the war. The treaty also deprived Germany of territory, natural resources, and even ships, trains, and factory equipment. Germany’s population was undernourished and contained many widows, orphans, and disabled veterans living in poverty. The new German government struggled to deal with these crises, which had produced a serious hyperinflation.
1925-1929 as the Time of Economic and Political Stability in the Weimar Republic The years 1925-1929 were described as the Golden Years for Germany. There were no attempts to over throw the government like the Sparticist uprising or the Kapp Putsch, therefore undoubtedly it was the best years compared to the problems before and after the Golden Years. The way the golden years were perceived would indicate to what extent were the years 1925 to1929 a time of economic and political stability for the Weimar Republic. There were developments in Germanyduring the Golden Years in the following essay we will learn where the developments took place and whether they disadvantaged Germany or helped her
As of the treaty of Versailles and the failure of the Weimar republic it caused the great depression. The depression began on the 29th of October 1929 due to the fall of the wall street stock market forcing the U.S. to take back loans from Germany leaving them in a desperate state. The U.S. notified Germany giving them 90 day to pay back all the money that was loaned to them by America. During the great depression the German government provided no solution to help resolve the depression sooner but if the depression wasn’t harsh it was possible that the republic may have survived but then the unemployment rate was 6 million assuring the failure of the republic. This impacted the German people in many ways such as suddenness of the great depression,
After the end of the First World War, Germany was perhaps the most financially afflicted. Having been deemed the aggressors in World War One, the Germans were forced, by the Treaty of Versailles, into a situation which left the country even further ravaged that its contemporaries. Often it is argued that one of the only decent things that could be attributed to Hitler was his fixing of the German economy, making it into one of the world’s most powerful prewar economies. The rebuilding of the economy, in blatant disregard to the Treaty of Versailles is what led to Germany’s rising power. The focus on rebuilding the army even after they had sanctions placed upon them not is what is often attributed as saving the German economy. Nazi economic
Imagine that after a lifelong of hard work and saving, you find that your lifesavings will not buy more than one cup of coffee. For a majority of the middle class living in Germany during the early 1920’s this was precisely their experience. Of course, not all suffered during this period of hyperinflation. Those who owed money encouraged their government’s expansionary monetary policies, knowing the resulting inflation would effectively cancel their debt. In fact, it was the Reich itself who had the most to gain from inflation, for it was the biggest debtor of them all.
Starving. You are starving. According to Germany during the Great Depression you would have been out of work and hungry for many years now. You take your trillion marks down to the corner store, wait in line, claw and fight your way for the last couple of items and then find out when you get to the cashier that due to the ever growing inflation your trillions of marks won’t be enough for a single loaf of bread, as is life in Germany in the late 20’s and early 30’s. According to Commanding Heights: The German Inflation most people especially the young have grown up in these terrible conditions were it was more cost effective to take the German marks and burn and use them as wallpaper than as actual money. Around this time you hear about a
Without being able to import or export products, a lot of the middle class suffered (nber, 1934). The loss of land also forced ethnic groups to mix, which created negative social effects. The German currency became worthless, leaving many unemployed. Germany experienced a loss in their armed forces, army and weapons became limited. This made German’s angry, as the military was a symbol of pride.
The collapse of the Weimar Republic can not be seen as solely indebted to the severe economic problems faced during the period of its rule, but consequently it was the economic issues that became a footstep to the ultimate demise of the Republic. Subsequent to Germany’s defeat in the First World War and German Emperor Kaiser’s abdication from power, the Weimar Republic was proclaimed. The Republic that had emerged from the German Revolution of November 1918 would inevitably fall as a result of numerous issues. However, the extent of which economic problems had in the dissolution of the republic, and how these issues caused or came about due to separate concerns faced by the new democratic system became a major contributing factor.
Why Germany lost the war (despite its early tactical successes) is a simple question with a complex answer. And, over the years since Germany’s surrender at Reims, France on May 7, 1945, scholars and historians have provided a number of arguments to warrant their perspective answers. Consequently there are a
With the destruction of the Nazi Empire came celebration and uncertainty; the victory of war brought instability to a major
The Great Depression was triggered when the stock market collapsed on Wall Street on Tuesday, October 29, 1929. This event’s effects were felt globally as many countries around the world were economically dependant on the US. The German economy was especially vulnerable since most of its economy was built on foreign capital, mostly loans from the USA. When the stock market crashed, US looked inwards to stabilize its own economy through recalling all foreign investments. Overnight, the middle class standard of living many German families enjoyed was ruined. Many were left homeless and poverty ran rampant throughout the streets of Germany, people needed a solution, any solution. Adolf Hitler saw this as an opportunity for his Nazi party to benefit