This seemed harsh when linked to the other economic problems that Germany was experiencing. The payments were around 5% of the national income. As Germany could not afford to pay this, they had to borrow a lot of money from America. In addition, they had to import raw materials, which lead to a balance of payments deficit. This caused currency decline and inflation. Despite this, others believed that Germany deserved to take the full blame for the war and therefore should pay for all the damage caused. Furthermore, as Germany originally created the principle of paying reparations and had previously imposed reparations on France after the 1870 war, many groups thought that it was only fair for them to also have to pay. In addition, many people believed that the reparations were fair as the amount was changed to a more reasonable figure in
This seemed harsh when linked to the other economic problems that Germany was experiencing. The payments were around 5% of the national income. As Germany could not afford to pay this, they had to borrow a lot of money from America. In addition, they had to import raw materials, which lead to a balance of payments deficit. This caused currency decline and inflation. Despite this, others believed that Germany deserved to take the full blame for the war and therefore should pay for all the damage caused. Furthermore, as Germany originally created the principle of paying reparations and had previously imposed reparations on France after the 1870 war, many groups thought that it was only fair for them to also have to pay. In addition, many people believed that the reparations were fair as the amount was changed to a more reasonable figure in