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How the Depression affected Germany

The Great Depression, which began in the United States when the stock market crashed in 1929, profoundly affected the German economy. This is because the US government was providing loans to Germany before the Depression through the Dawes Plan as a way of helping Germany back on its feet. The US was vested in the economic health of Germany to collect on Germany's war debts to the Allies, as required in the Versailles Treaty. When the Depression caused the US to reduce these payments (Young Plan) to the Weimar Republic, Germany's struggling new democracy now dependent on this revenue, the German economy fell apart. Many historians believe this disaster opened the way for a demagogue like Hitler to appeal to some Germans desperate for jobs and restored self-esteem. Still, no more than a third of Germans ever voted for Hitler.

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How did the Germany economy fare after World War 1?

After World War 1, the German economy suffered greatly due to the heavy reparations imposed by the Treaty of Versailles. Hyperinflation and economic instability plagued the country, leading to widespread poverty and social unrest.


Where do you invest in hyperinflation?

You don't, honey. Hyperinflation is when the value of a dollar drops drastically. Worst case I can think: In Germany after world war 1 when, at one point, it took 3 trillion German marks to equal 1 American dollar. Who'd want to invest in that?


How did German currency lose its value?

Between World War I and World War II, Germany suffered "hyperinflation," whereby its currency essentially became worthless. The causes of this are numerous and complex, but most economics to ascribe the currency crisis to the financial strain of war reparations under the Versailles Treaty, which prevented the country from reinvesting in its industry and agriculture so that it could recover from the devastation of World War I.


Which countries fought against Germany in World War 1 but on Germany's side in World War 2?

Japan and Italy fought against Germany in World War 1 but were on Germany's side in World War 2


Differences in alliences in world war 1 and 2?

Both world wars had Germany on one side and Britain, France, the United States, Russia, and China on the other. Differences include the fact that the Russia of World War I was the imperial Russian Empire while the Russia of World War II was the communist Soviet Union. Countries that changed sides include Turkey (for Germany in World War I, neutral in World War II), the Austro-Hungarian Empire (for Germany in World War I, no longer existed by the time of World War II), Italy (against Germany in World War I, for Germany in World War II), and Japan (against Germany in World War I, for Germany in World War II).

Related Questions

What nation experienced extreme hyperinflation or skyrocketing cost of goods that contributed to the start of World War 2 France Germany Britain Japan?

Germany .


Totalitarianism took root in Germany following World War 1 as a result of?

Answer this question… economic problems caused by hyperinflation.


What economic factors after World War 1 impacted the beginning World War 2?

The Treaty of Versailles demanded that Germany repay reparations for WW 1; hyperinflation led to Hitler's rise


Did this happen in World War 1 or World War 2 ended with Germany defeat in 1945?

World War 2


What caused the economic and political problems after world war 1?

America had the wall street crash and they wanted all the reparations to be paid back therefore Germany went into hyperinflation.


Where year did world war 2 happen?

In 1939 Germany invaded Poland, starting the war.


What happen on the 4 august1914 in world war 1?

Great Britian declared war on Germany.


How did world war l contribute to a German economic crisis?

Germany printed more paper money to pay wartime reparations, which led to hyperinflation.


How did the Germany economy fare after World War 1?

After World War 1, the German economy suffered greatly due to the heavy reparations imposed by the Treaty of Versailles. Hyperinflation and economic instability plagued the country, leading to widespread poverty and social unrest.


What do you think will happen after world war 2 and why?

countries have power and germany to stop fighing


How did Germany let World War 2 happen?

On September 1st, 1939, Germany invaded Poland and started WWII.


How did World War I help cause World War 2 to happen?

Adolf Hitler served in world war 1 and was mad that Germany lost. other countries made Germany pay their war debts. so he became leader of Germany and started world war 2. he was also trying to take over the world. still Germany lost and Hitler failed to restore the nation to glory.