How Did The Treaty Of Versailles Affect Germany

1507 Words4 Pages
bulb-icon

Recommended: Hyperinflation caused by the treaty of versailles

The Treaty of Versailles had a very powerful significance on Germany from 1919-1939. Some say that the treaty had a positive or negative impact on Germany. I believe that the treaty caused a negative significance towards Germany when it was signed on June 28,1919. The Treaty of Versailles took away Germany's land also including all of their overseas colonies, cut their population, slashed their industries in half, and issued a mandatory disarmament. The treaty also caused hyperinflation and major economic depression soon after the treaty was signed. Signing the Treaty of Versailles completely crippled Germany for two decades after it was signed..
Before the treaty was even signed it was set up to take as much land from Germany as all the …show more content…

Due to how much Germany had to pay they started taking out loans and printing out money to pay back the reparations, unfortunately this caused major hyperinflation through the nation. Hyperinflation is caused when there is a significant increase in printed money but no Gross Domestic Product to backup the newly printed money. Hyperinflation was so high at one point that German citizens had to bring a wheelbarrow of banknotes to pay for one loaf of bread. Germany had printed out so much money to pay for reparations that when the money cycled through the economy, Germany's currency was valued at virtually nothing.
Germany was in very serious trouble due to the hyperinflation through the country. To solve this critical problem the German government introduced paper currency into the economy. The paper currency was called Ruhrkampf and to the government officials this was the only solution to the worsening crisis. This lifted the pressure off of the economy and the hyperinflation started to dissipate when the new currency ran through the country and helped the nation come out of a very hard part of history, unfortunately it wasn't the best solution and the currency later fell after the fall of

Show More
Related

  • Fascism in the 1920's and 1930's

    820 Words  | 2 Pages

    In order for Germany to pay the debt that they owed they kept changing the value of their currency. This action caused inflation. The Bourgeoisie was suffering greatly from inflation as well. Infla...

    Read More

  • Hitler's Aims and Actions as the Cause of World War II

    819 Words  | 2 Pages

    The harshness of the Treaty and the way in which it blamed Germany for World War I crippled Germany. Much of its territory was taken away from it, including West Prussia that went to form a new Polish Corridor to the sea. Plus the Treaty forced Germany to reduce its army, demilitarise the Rhineland and get rid of its navy. The Treaty also forced harsh reparations for the War resulting in a great deal of the German people resenting the Allies. And it was later that Hitler used the bitter memories of Versailles to gain public support for his actions.

    Read More

  • The Causes of World War II

    663 Words  | 2 Pages

    The Treaty of Versailles is a cause of World War II because of the restrictions it placed on Germany as the alleged sole aggressor of the war. The war reparation totaled $98 billion, and under Clause 231 Germany was forced to take the entire load onto her ruined economy and attempt to repay the debt starting with an initial $5 billion payment. In terms of military, Germany was limited to a 100,000 man army, with her navy stripped to the level of a coast guard, she was allowed no heavy artillery, no weapons of mass destruction and the border with France became a demilitarized zone for 15 years following the signing of the treaty on June 28 1919. Germany also lost all her territories in Africa and became a mandate of the Allied Forces, those living in mandated zones could participate in “self-determination” after the Allies taught them how to be a democracy (...

    Read More

  • Was the Treaty of Versailles the Major Cause of World War Two?

    1156 Words  | 3 Pages

    At the end of World War One, Germany was required to pay a large sum of money to the Allies consequently resulting in the German Depression. The sum Germany had to pay was set after the Treaty of Versailles was enacted at approximately six billion, six hundred million – twenty-two billion pounds, (World War Two – Causes, Alan Hall, 2010). The large amount of reparations that Germany had to pay resulted in a depression and angered the Germans because they thought it was an excessive amount of money to pay, (World War Two – Causes) The Germans hatred of the Treaty of Versailles was of significant importance in propelling the Nazis to power. Germany could not pay their reparations and was forced into a depression, (World War II – Causes). The Treaty of Versailles deprived Germany of its economic production and its available employments, (World War II – Causes). The German Depr...

    Read More

  • Causes & Effects of the Holocaust

    1411 Words  | 3 Pages

    In addition, having lost the war, the humiliated Germans were forced by the Allies to sign the Treaty of Versailles in 1919 that officially ended World War I. According to the harsh terms of the treaty, Germany had to hand over many of its richest industrial territories to the victors, and was made to pay reparations to the Allied countries it devastated during the war. Germany lost its pride, prestige, wealth, power, and the status of being one of Europe's greatest nations. (Resnick p. 15)

    Read More

  • How Did The Versailles Treaty Help The World War II?

    1394 Words  | 3 Pages

    The Treaty of Versailles, initially created to keep peace in Europe and ensure that another war like World War I wouldn’t happen again, had in fact, backfired and spiraled the world down into a deeper, bloodier battle. The treaty discriminated strongly against Germany, with the loss of territories, military restrictions, economic reparations, and the War Guilt Clause. It caused humiliation and anger within Germany, and led to Hitler and the Nazi Party coming to power. World War II was not only started by Adolf Hitler and Germany, but had a lot to do with the humiliation that Germany felt when the terms for the Treaty of Versailles were laid down. The harsh terms of the Treaty of Versailles may be indirectly related to the cause of World War II, but nonetheless was a huge factor in starting the war.

    Read More

  • Weimar Hyperinflation

    2077 Words  | 5 Pages

    Hyperinflation is an economic condition characterized by “a rapid increase in the overall price level that continues over a significant period” and in this period the concept of inflation is essentially rendered meaningless (Kroon 90). The post-World War I German economy experienced a crippling period of hyperinflation which lasted nearly two years and had an enormous impact on the economy. The hyperinflation began inconspicuously as the inflation rate crept just a percent or two per year during the war years. In the post-war period inflation began to rise and in early- to mid-1922, inflation raged. During this period, businesses reached full operational capacity and unemployment nearly disappeared. While nominal wages increased, real wages dropped precipitously. Workers were paid two or three times a day, and they rushed home to pass the money to family members who could go and exchange the rapidly depreciating currency for real goods (clothing, food, etc.) before it became completely worthless. Prices rose so rapidly pe...

    Read More

  • Hyper- Inflation in Germany 1923

    1351 Words  | 3 Pages

    Hyper- inflation in Germany 1923 was that of a huge blow to their economy and moreover, to their self-esteem. The value of the German mark became next to nothing, and people ended up having to trolley wheel-barrows full of money just to buy a loaf of bread. There are several causes for this happening in the first place, Germany had no goods to trade with the first place and they weren’t exactly on good terms with other countries to be in a position to do so. Then there was the severe impact of the treaty of Versailles that was “happily bestowed” upon them after the First World War. The French invasion of the Ruhr caused an uproar in the German government and it didn’t help in terms of Germany’s economy either. These were just a few main causes of the hyper-inflation in Germany, however, to find out what really happened what the real truth is we would have to accept the fact that real answer lies with inputs from all of these causes as they all played a part.

    Read More

  • The Treaty of Versailles as a Cause of WWII

    957 Words  | 2 Pages

    The 11th hour of the 11th day of the 11th month of 1918, marks the day that WWI descended into armistice. However, the involved countries reached an agreement as to the events following the war on the 28th of June, 1919. The famous Treaty of Versailles was known for its role in ending war. But it was not known for being a double-edged sword, as the ending of war came with the consequence of causing future war. The Treaty consisted of uncontested biases due to Germany's unconditional surrender. The Allies held a gun to Germany's head, with their trigger finger tense. Each article of the Versailles Treaty only made Germany more restless, until 1933 when Hitler produced his own gun and pointed it at the Allies. The Treaty had a series of unproportional effects upon Germany and its people. It caused a rift between the two sides because of the alliances that it formed, brewing tension. The punishments enforced upon Germany were unrealistically huge and it increased the wish among the Germans for the nullification of the Treaty. Finally, the accumulated hatred amongst the people gave birth to potential for a revolution. The Treaty of Versailles is, therefore, an indirect cause to World War II, because of the alliances it caused, the punishments it enforced, and the hatred it developed.

    Read More

  • Why Did Germany Increase The Amount Of Money In Ww1

    391 Words  | 1 Pages

    At the start of World War I in 1914, one American Dollar was worth 4.20 German Marks. All the major European currencies had similar values including the British Shilling, French Franc, and Italian Lira and they were all backed by gold. This generally meant that the currency is worth some fixed amount of gold, and the government can only issue up to the amount of gold they had. However, Germany moved away from the gold backed currency in 1914. They thought the war would be short, so they financed the war by borrowing the money, mostly in the form of government bonds. At the beginning of the war, Germany’s national debt was 5 billion Marks, and at the end it rose to 156 billion in just five years. Unfortunately, the majority of this debt was

    Read More

  • How Did Ww1 Affect The Canadian Economy

    840 Words  | 2 Pages

    To try to pay its reparations, the German government printed huge amounts of money. Subsequently, marks -- German currency -- became almost worthless. A loaf of bread which used to cost 2 marks in 1918, became worth six million marks in 1924. People struggled to survive and more than 60 million people, both military and civilian, died.

    Read More

  • Treaty Of Versailles Essay

    701 Words  | 2 Pages

    The Treaty of Versailles did not just end World War I, but it also changed the world. From it changing every countries view on Germany, to changing Germany itself. It contained many conditions, which led to the countless numbers of results. This treaty created a completely different outlook on the world.

    Read More

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

    1670 Words  | 4 Pages

    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

    Read More

  • 19th Century Germany

    1714 Words  | 4 Pages

    Many socialist programs began with the rise of the republic. The government took up a position of passive resistance against the occupation of the Ruhr industrial region. Workers in the region went on strike to protest the occupation, and in an effort to pay the reparation debt and the workers, the treasury printed money without financial backing. This irresponsible printing of money caused hyperinflation; a single US dollar bought 4.2 trillion marks, whereas in 1922, a single US dollar bought 3,180 marks. Germans carried suitcases full of money just to buy a pair of shoes or a loaf of bread. Chancellor Gustav Stresemann stopped the craziness by halting the printing of Marks and introduced new, stable Reichsmarks that had gold backing. The old currency was exchanged for the new stable currency and it had an immediate effect. Prices stabilized, and inflation stopped. Stresemann also negotiated a reconciliation with France and for the end of the occupation of the Ruhr in return for a promise of scheduled reparations payments. Stresemann, along with Charles Dawes, an American banker, revised the reparations payments and schedule to a manageable level. The Dawes Plan, backed by American financing, was approved by the Reichstag in August 1924. American dollars began to flow into Germany, ensuring industrial trade between the two countries. The striking workers returned to their jobs, and the German economy started to gain strength. Both Dawes and Stresemann received the Nobel Prize for

    Read More

  • Weimar Germany: Promise And Tragedy

    1124 Words  | 3 Pages

    A demoralizing loss and economic altering war left the German government splintered. After World War I, costly demands from the Allied Powers left Germany in a struggling state. Germany was required to sign and agree to the Treaty of Versailles. This treaty became one of the causes that sends Germany into an economic depression in the 1930’s. Germany was required to accept the responsibility of causing all losses and damages during the war.

    Read More

More about How Did The Treaty Of Versailles Affect Germany

Open Document