Inflation In The Weimar Republic

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The end of the Great War was a joyous occasion for people around the world. However, that jubilation did not last long as lasting consequences such as debt and economic instability were realized around the world. The hardest hit out of all of these countries was, arguably, the Weimar Republic. Already weakened by the harsh terms of the Treaty of Versailles (1919), the end of the war left the country with few assets and growing economic and political problems. The astronomical amount of debt they were in from reparations and loans can be attributed to the start of growing unhappiness among the people of the Weimar Republic. Their anger only grew when hyperinflation left many penniless and without compensation from the government. Unemployment,
It increased sharply in the years following the war; in 1930, three million people were employed, and by 1932, the number had risen to six million (Thackeray, 106). These tremendous numbers were caused by a number of problems in the Weimar Republic. Veterans who were unable to work, for example, needed the help of social welfare programs in order to provide for themselves and their families (Schroeder 109). While these programs were morally necessary to honour those who had fought in the war, they also put enormous strain on state budgets as the government tried to fix the persistent problem of hyperinflation (Schroeder 109-110). The start of the Great Depression in 1929 only worsened the problem. The Weimar Republic had become dependent on the loans from the United States, and when the United States asked for the money back, much of Germany’s assets went back with it (Thackeray 106). The Great Depression also saw many countries increasing duties on imports to protect the producers of their own goods, and that contributed to a steady increase of unemployment as the Weimar Republic was a primary producer of exports (Thackeray 106). Many people who worked for factories became unemployed as demand for Germany’s products went down, and by 1932 as many as six million people if not more were unemployed (Thackeray

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