This helped Hitler because many Germans resented this clause and he could use this to his advantage by protesting Germanys innocence to the masses at Nazi rallies. Another important factor is the reparations clause. This is an important factor because it stated that Germany had to pay £660 Million for the war and when Germany couldn't pay the instalments led to the French taking over the Ruhr region of Germany which in turn led the government ordering a strike. This strike meant Germany didn't have any money to pay the allies. To solve this problem the government printed more money but without the economy to support it caused massive hyperinflation and the first German depression.
Hoover didn’t want to spend anymore money than he had to. Hoover really didn’t want to raise the national debt no matter what. Roosevelt did whatever it took no matter what the cost. Money was no object to Hoover, as long as he thought that program or agency could have a chance of getting them through the Depression he took a gamble on it and raised the national debt. Hoover made sure that there was enough hard money to back up the paper money in America while Roosevelt played it risky and printed extra money.
This was because Germany kept taxes very high. The rearmament was initially supposed to be completed by between 1940 and 1942 but Germany went to war earlier than expected in 1939. Lastly the standard of living for the average German rose and the number of jobs increased. The failures were that German exports were very low and the export industries put most of their attention towards rearmament. Some historians also think that the huge amount of money spent on rearmament caused shortages on important materials and labour.
The Stability of the Weimar Republic's Economy by 1924 In 1918 the German economy was on the verge of collapse. Germany had committed so much money to its armed forces during the First World War that it barely had enough to feed its people. This was without the complications of the Treaty of Versailles in 1919 that crippled it further. The treaty of Versailles demanded ridiculous sums of money from Germany in order to pay for damage done to Europe during the campaign. They asked the Germans for £6600 million to cover this cost.
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.
Historians argue that this and the international fallout that resulted most notably with the United States were simply too powerful to avoid war at all. The ramification of the Treaty sent the German economy into a severe depression and planted the seeds needed to sprout revenge and uprising such as the world had never seen before. Estimates for the costs of the war for the Allied Powers fluctuated between ten billion and one hundred billion dollars. Ultimately, the Allied Powers settled on the astronomical sum of thirty-three billion dollars which the German government was mandated to pay but simply did not have the funds to do so. In addition to paying reparations, Germany had to severely limit military spending and personnel, relinquish land previously gained in the World War, and was barred from having any air force at all.
It is like a domino effect that continues at faster and faster rates. The German Government should have thought of the future consequences and reversed its inflationary policies immediately after the war ended, as the other belligerent countries did. It is true that none of the other countries fared well during this interwar period, but at least citizens of other countries didn’t find their lifesavings to be utterly worthless. The inflation problem actually began at the beginning of World War I. It was then that the German Government started to accumulate debt and to increase the money supply.
However, it was unimpacted by the Treaty of Versailles. In fact, the Great Depression originated in the United States, which did not even sign the Treaty of Versailles. It may not be clear why the Great Depression, which began in and most impacted the United States, caused Germany, and not more negat... ... middle of paper ... ...reaty, caused one of the most important parts of the war. Furthermore, the conditions that allowed for a fascist ruler to take control in Germany would have been in place if the treaty had not been signed, or had been less harsh on Germany. It is important to understand the causes of WWII because the war was a dominating part of the late 1930’s and 1940’s, and because the war laid the groundwork for the cold war.
It was beset with many problems, leading many Germans either to withhold support from the Parliamentary Democracy or to seek actively to destroy it. The Republic had to deal with a weak economy plagued by high rates of inflation and unemployment. Inflation was fuelled partly by the enormous wartime debts that the Imperial Government had contracted rather than raising taxes to finance the war. Instead of raising the taxes they had preferred to rely on the short-term foreign loans.  Inflation ruined many middle-class Germans, who saw their savings and pensions wiped out.
Furthermore, Britain had been led to believe (through Nazi propaganda) that Germans were being persecuted there. However, the Sudetenland was not land that Germany had lost in the Treaty of Versailles. The loss of the Sudetenland was also very detrimental to the Czechs - they lost many resources and arms factories, making it economically difficult for the Czech economy and its ability to survive as an armed force. Finally, in 1939, he took the rest of Western Czechoslovakia. Chamberlain adopted this policy of appeasement for many reasons.