After the first World War, Germany was forced to pay large reparations an give up land. Germany didn’t have the money to pay to the major powers so they just made more instead. This then caused hyperinflation which led to a world-wide depression. This world-wide depression caused massive unemployment rates but a rise in socialist ideas that caused nationalism and hope to come back to Germany.
During this time period, after the war, due to the reparations; Germany suffered hyperinflation. The Treaty of Versailles forced many strict enforcements on Germany because they blamed Germany entirely for World War I. Some of these punishments included loss of land, paying for the damage of the war and to accept full responsibility for the war. These reparations were so painful to Germany that they couldn’t pay for all of them so they just printed more money in order to pay for them, which led to too much money in the German economy. This is called hyperinflation. The inflation became so horrid so fast that in July of 1923 the value for every German mark to U.S dollar was 375,000. In December of that same year the value for every German mark to U.S dollar rapidly spiked to 4 trillion dollars. Marks lost so much value during this time period that some people burned the paper money instead of getting kindling because it was cheaper. Performers would also be paid, not in money; but in sausages. Hyperinflation wasn’t the only problem, unemployment increased as well. The Great Depression was an economic slump in North America, Europe, and other industrialized areas of the world that began in 1929 and lasted until about 1939. It was the longest and most severe depression ever experienced by the industrialized Western world. The Great Depression may be said to have begun with a catastrophic collapse of stock-market prices on the New York Stock Exchange in October 1929. Furthermore, based on four charts on page 17, during the economic depression, the charts illustrate...
Please join StudyMode to read the full document