A Bad Economy

“A Bad Economy: Hitler’s Key to Gaining Power”
Michael Turner
HST 1370 LE01 (History of the 20th Century)
October 12, 2010

Michael Turner
HST 1370 LE01
October 12, 2010
“A Bad Economy: Hitler’s Key to Gaining Power”

Between the period of 1918-1933, Germany had suffered a major hit to their economic system due to the funding of World War I, The Treaty of Versailles, German Hyperinflation, and The Great Depression. From my research that I have done, I have concluded that all of these factors were key to the rise of power of Adolf Hitler in Germany. In this essay I’m going to explain why each of these four factors are connected to Germany’s struggling economy as well as contributed to Hitler’s rise of power. My first finding for Germany’s struggling economy was by the Germans funding World War I that went from July 28, 1914 to November 11, 1918. In dollars it is estimated that it cost Germany $37,775,000,000 to fund the war. That amount was the most of any other country that participated in World War I. The next closest funder of the war was Great Britain with an estimated dollar cost of $35,334,012,000. This funding included paying the troops, food rations, medical supplies, production of weapons, as well as transportation costs. But even with this great amount of money spent on the war, it was only the start of Germany’s economic problems. My next finding was the Germany’s signing of The Treaty of Versailles on June 28, 1919. The Germans were unhappy with the Treaty of Versailles overall but totally devastated by Article 231, which was a war guilt clause that declared Germany responsible for the war and due to those findings ordered Germany to pay reparations to the Allied nations. Along with having to pay the Allies reparations, The Treaty of Versailles also ordered Germany to downsize its military forces as well as to give up territory. Now with high cost of funding the war, along with having to pay reparations to the Allies eventually led to The German Hyperinflation between the years of 1921-1924. The hyperinflation came to be after the war budgets deficits rose, which then caused prices in Germany to rise for its citizens. The value of the German mark went from $0.25 to $0.00000000000025. By 1923 the German paper mark was worthless. Upper middle class savings in Germany were wiped out during hyperinflation. My last finding to Germany’s economic demise was The Great Depression. The Great Depression stemmed from the Wall Street crash in 1929 and the Banking Crisis in 1931. Although both of these crises happened on United States soil it had residual affects in Europe due to the stoppage of United States banks to accept loans from Europe. During the time of The Great Depression Germany’s unemployment rate was 30% and also suffered a decline in their Gross Domestic Product to 23%. With their defeat in World War I, the signing of The Versailles Treaty and all of the Germany’s economic troubles suffered under the term of the Weimar Republic, gave fuel to Adolf Hitler and the Nazi Party that got established in 1919. During his many Nazi Party event rallies Hitler preached of a new German pride, the creation of jobs, and a stability of the German economy. With many Germans ready for a change from the old regime they fully supported Hitler as well as the Nazi Party by electing them to more government seats. In conclusion I have outlined how all of Germany’s financial struggles that stemmed from the funding of World War I, The Treaty of Versailles, German Hyperinflation, and The Great Depression all eventually led to Hitler’s rise of power. Backed by great charisma, strong German pride, and a promise for change from the old regime he won over the hearts of millions of Germans. Although a lot of negativity coincides with Adolf Hitler’s name, the one thing that he did want for Germany was a better Germany.

Works Cited
Duiker, William J.. Twentieth-Century World History. 4 ed. Belmont, CA: Wadsworth Publishing, 2006.
"Economic History of the 20th Century." Economic History of the 20th Century. www.econ161.berkely.edu/TCEH/Slouch_Restoring11.html (accessed October 12, 2010).
"Financial Cost of the First World War." Spartacus Educational - Home Page. http://www.spartacus.schoolnet.co.uk/FWWcosts.htm (accessed October 12, 2010).
“Germany Set to pay off Last Reparations of WWI”

http://www.worldaffairsboard.com/world-wars/56625-germany-set-pay-off-last-ww1-reparations.html

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[ 1 ]. www.spartacus.schoolnet.co.uk/FWWcosts.htm, 2010
[ 2 ]. William J. Duiker, Twentieth Century World History 4th Edition (Belmont, CA: Wadsworth Publishing, 2006), 79
[ 3 ]. William J. Duiker, Twentieth Century World History 4th Edition (Belmont, CA: Wadsworth Publishing, 2006), 79
[ 4 ]. www.econ161.berkely.edu/TCEH/Slouch_Restoring11.html, 2010
[ 5 ]. www.econ161.berkely.edu/TCEH/Slouch_Restoring11.html, 2010
[ 6 ]. William J. Duiker, Twentieth Century World History 4th Edition (Belmont, CA: Wadsworth Publishing, 2006), 82-83
[ 7 ]. Class Notes, 2010
[ 8 ]. www.worldaffairsboard.com/world-wars/56625-germany-set-pay-off-last-ww1-reparations.html, 2010

Cited: Duiker, William J.. Twentieth-Century World History. 4 ed. Belmont, CA: Wadsworth Publishing, 2006. "Economic History of the 20th Century." Economic History of the 20th Century. www.econ161.berkely.edu/TCEH/Slouch_Restoring11.html (accessed October 12, 2010). "Financial Cost of the First World War." Spartacus Educational - Home Page. http://www.spartacus.schoolnet.co.uk/FWWcosts.htm (accessed October 12, 2010). [ 2 ]. William J. Duiker, Twentieth Century World History 4th Edition (Belmont, CA: Wadsworth Publishing, 2006), 79 [ 3 ] [ 4 ]. www.econ161.berkely.edu/TCEH/Slouch_Restoring11.html, 2010 [ 5 ] [ 6 ]. William J. Duiker, Twentieth Century World History 4th Edition (Belmont, CA: Wadsworth Publishing, 2006), 82-83 [ 7 ] [ 8 ]. www.worldaffairsboard.com/world-wars/56625-germany-set-pay-off-last-ww1-reparations.html, 2010