Anonymous
Anonymous asked in Arts & HumanitiesHistory · 2 months ago

How did the Treaty of Versailles affect Germany's economy?

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  • Fred
    Lv 7
    2 months ago
    Favorite Answer

    The treaty of Versailles was a harsh treaty for the Germans to accept as it demanded Germany pay reparation costs to France and Britain for their costs of the war.  It also laid out what military they would be allowed to have with a very reduced number of soldiers, virtually no aircraft industry, and limited warships of low tonnage so they could not be powerful if they went to war again.  The German government felt they had no choice but to accept the treaty as the Germans at home were on the verge of revolt and the Kaiser worried unless the war was finished soon the communists in Germany would get enough power to stage a revolution as the Russians had in 1917 which overthrew the tsar. 

      The German economy was in a shambles at the end of WW1 and German soldiers returning from the war found little employment which angered them as they felt Germany should not have surrendered, and then come home defeated to a country that cannot even give them a job.  Then if things were not bad enough Germany had to make massive payments to Britain and France for their war costs which left very little for aid programs to get their own economy running again.  In 1928 the American economy crashed after many people had misused the stock market there and this spread to the rest of the world.  Germany was hit very hard but was still expected to make the reparations costs even though it could not afford to do so.  Many Germans  were unemployed and with no social security their country started to starve.  The German government foolishly tried to just print more money than it was worth to pay its public servants and this caused a massive hyper inflation problem.  People with any money shopped early in the morning as prices would jump upwards by the end of the day.  Soon the money was so worthless that many workers had to take a wheel barrow to work on pay day as the amount of paper money was too large to carry home in your pocket.  The stack of bank notes to buy a loaf of bread was bigger than the loaf of bread.

      Adolph Hitler saw his opportunity to promise the German people a better life and he and his Nazi party began their rise to power.  They promised to refuse to pay the reparations costs and to start large work programs so the Germans could have jobs again.  Little did many realize Hitler borrowed huge sums of money he had no plans to ever repay and was stealing off the Jews.  Likely many Germans did not care as long as they were seeing a bit more money to lift them out of poverty.

  • Tina
    Lv 7
    2 months ago

    Dave (aka 1465) do stop repeating:

    "The last payment for reparations was made on October 3, 2010."

    Germany never made a full yearly payment between 1919 and 1933 and in 1933 they stopped paying all together until they made that final token payment in 2010.

    It was Hitler's decision to spend money Germany didn't have on preparing for war - which led to him tripling Germany's National Debt between 1933 and 1939- no one asked him to.

  • 2 months ago

    They were GUILTY of WW1 they were Ordered to pay for our Losses the Treaty of Versailles was a slap on the wrist compared to what Germany Imposed on Russia

    The Wimps could dish it out and Moaned about it for 20 years when the world retaliated

    By the terms of the Treaty of Brest-Litovsk, Russia recognized the independence of Ukraine, Georgia and Finland; gave up Poland and the Baltic states of Lithuania, Latvia and Estonia to Germany and Austria-Hungary; and ceded Kars, Ardahan and Batum to Turkey. The total losses constituted some 1 million square miles of Russia’s former territory; a third of its population or around 55 million people; a majority of its coal, oil and iron stores; and much of its industry. Lenin bitterly called the settlement “that abyss of defeat, dismemberment, enslavement and humiliation.”

  • 1465
    Lv 6
    2 months ago

    Not only was Germany forced to pay hundreds of billions of dollars in reparations,  but their economy collapsed twice - plus spending on a war they never wanted took even more money they couldn't afford to lose.

    The last payment for reparations was made on October 3, 2010.

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  • 2 months ago

    Oh, very well. Very positively. The Treaty of Versailles was very good for the German economy. You could buy about 4 million boxes of matches for pennies, though why you'd want to I don't know. But all you need to know is, yes, everything was fantastic and, well, just wonderful. Hope this helped.

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