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Germany's Rise From Bankruptcy to a Superpower Between 1929-1939

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Germany's Rise From Bankruptcy to a Superpower Between 1929-1939

1929 was a hard time for Germany. Hyper inflation had taken control,

the Reich mark was worth nothing, and they were literally bankrupt.

The reason for their bankruptcy was due to the economic collapse of

America. After world war one Germany had been made to pay large

reparations to France for the damage they had caused. Germany had

problems paying these large reparations and called in America for

help. They decided to loan Germany the money because they saw

essential for a strong Europe and they wanted the foreign trade whilst

their economy was booming. This all changed November 1929 when the

Wall Street crash happened and the American economy was collapsing.

They had to stop loaning money to Germany and even called up the money

they had given to them. The German government thought by printing more

money the problem would be solved. The opposite happened, hyper

inflation took place and money became worthless in Germany and

unemployment was rising. By 1931 unemployment rose to 6 million which

was a quarter of the working population in Germany, it was official

that the country was in need of improvement and quickly. There was an

outcry for a new government that could take over from the old Weimar

republic and once again boost Germany back to a superpower. The Nazis

were one of many radical parties, but why was it the Nazis that

succeeded in taking power and getting Germany back to a superpower?

The German people started to lose faith in their democratic republic

and it was the middle and working class that was looking to the

extreme parties for help, the Nazis and the c...

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...o clear decision on the

management of the German economy was made. Large weapons contracts

with industrial firms soon had the economy running at top speed, and

full employment was reached by 1937. Wages did not increase much for

ordinary workers, but job security and food given to the people after

years of economic depression was enough to make the general population

happy. This helped with Hitler’s idea of German self-sufficiency and

trying to get them ready for war and the country was now gaining a

large army with a good infrastructure and morale of the country was

increasing as people was getting work. By 1939 unemployment had

dropped to 30 000. Now industrial production was larger than that

before the Wall Street crash of 1929 and Germany were ready for like

they said they would be within the four year plan.
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