How Did The Ww1 Affect The Economy

After WWI, Germany was a democratic republic country called the Weimar Republic from 1919 to 1933. During this period, a myriad of political and economic factors allowed for the increase of the Nazi influence. In January 1933 Hitler was able to rise to the center of German political arena and became the Chancellor.

Losing WWI was the dominant factor affecting the political and economical conditions of Germany after 1919. As a defeated country in WWI, Germany was forced to accept the Treaty of Versailles, which deprived 13.5% of the German territory and 12% of its population. Germany also lost all its overseas colonies, 16% of the coal producing land and half of its steel and iron industry. On top of these losses, the Versailles Treaty also stipulated that Germany would have to pay huge war reparations to the winning countries. All these caused great difficulties in the German economic operations and pushed the German economy to the verge of bankruptcy. The inflation rate became extremely high and prices were soaring. Printing presses worked overtime to print Reichsbank notes. By November 1923 one US dollar was worth 4,200,000,000,000 marks. Unemployment rate was also very high. Many people lost
Under this plan, the U.S., together with a few other countries, would provide loans to the German government in exchange for their timely payment of the war reparations. Private lenders, mainly from the U.S. also made foreign investments in Germany, which helped the German production restore to the level before WWI and relieve its economic crisis. But the loans funding reparations payments and foreign investments funding the economy were suddenly withdrawn after the 1929 Stock Market Crash. The Great Depression, which broke out in America, soon swept the whole world and had devastating impact on the German economy which sank into depression again. Unemployment in Germany rose to 6