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Germany's economic struggles post-WWI, political ideologies, Treaty of Versailles impact, Great Depression, and rise of Hitler contributed to WWII. Economic hyperinflation, political instability, Treaty of Versailles, depression, and Hitler's rise played pivotal roles.
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1. Economic Problems in Germany: Hyper -inflation • Germany was forced to pay war debts for WWI to the Allied nations • Germany borrowed the money • Eventually, all the countries wealth was paying off war debts • Printed $$ to pay off debts – massive inflation • 1922 – 300 marks to buy $1 US • 1923 – 50,000 marks to buy $1 US
Economic Problems People began to barter and trade goods and services rather than use money Advertisement from Schmidt’s Deli
The value of $ This picture shows a woman using German marks as fuel in her furnace.
Kids using bundles of marks as building blocks. Payroll money being transported in laundry baskets
2. Political Instability • Economic problems lead to political instability • 3 main political ideologies (beliefs about role of government) emerge: • Communism • Social Democracy • Fascism (National Socialism – Nazi Party)
Communism • Purpose of government is to serve the needs of the people • Government should be run by workers – democratic in principle • Industry and agriculture should be owned by the state • No private property allowed • Supporters: workers, unemployed, some teachers/professors
Social Democracy • Purpose of government is to balance the needs of the people with rights of private business in a capitalistic economy • Government run by elected representatives • Treaty of Versailles must be honored • Constitution guarantee rights of minorities, workers and freedom of press • Supporters: workers, some professionals, religious minorities
Fascism / National Socialism (Nazis) • Needs of the state (country) come before needs of individual • Government should be run by the wealthy and supported by the army • Private ownership of business allowed – but government reserves right to dictate terms • Democracy is a problem • Jews, foreigners, communists are responsible for Germany’s problem • Supporters: army, unemployed, big business & wealthy
3. Treat of Versailles • Treaty of Versailles imposed severe conditions on Germany • New boundaries, reparation payments and military restrictions were seen as unjust • Germans felt humiliated by Treaty – bitterness and anger
4. Depression and Unemployment • 1929 Stock market crash – world wide depression • Germany could no longer afford American products • US banks could no longer lend to German businesses – German business went bankrupt – job losses • Living standards fell drastically – families in Berlin were living in tents, farmers guarded their fields with rifles
The Rise of Hitler • In Germany, Adolf Hitler had been regarded as a fringe political player – did not have popular support • In the midst of this economic and political crisis the people of Germany began to listen to Adolf Hitler