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Life in the Weimar Republic
Leading to Fascism & Hitler
Let’s Review Germany’s Treaty of Versailles Punishments…
• Loss of territory • Huge reduction of military• King must step down—Democracy
must replace monarchy • Acceptance of Guilt for WWI
—”Guilt Clause” • Reparations—Billion dollar
payments to England, France, Russia, USA
Weimar Republic, what was it?•Born out of defeat in WWI•Weimar is the new Democratic system of government in Germany
•Named for the city in which the constitution was developed
•A Parliamentary system, not a US style Presidential system
Understanding Inflation & Hyperinflation
• Inflation: Rise in the price of any good or service
• Hyperinflation: when the inflation rates exceeds 50% a month
•Germany in 1923 experienced 322% inflation* If a cup of coffee cost you $1 in 2009, by 2010 it will cost you $322.00!!!
Inflation in Germany• According to the provisions of the Treaty
of Versailles, Germany was required to make reparation payments for war damages. In April, 1921, the Allied Reparations Commission determined that Germany owed 132 billion marks (33 billion U.S. dollars), payable in annual installments of 2.5 billion marks. In 1921, the new German republic, known as the Weimar Republic made its first payment.
Inflation in Germany• By the end of the war, the German mark
had lost half of its value. People experienced this phenomenon as a doubling of the prices they were paying for goods and services.
This girl is actually burningthe German
Marks because they were worthless!
German Mark Year U.S. Dollar
1914 $1
1919 $1
1922 $1
January, 1923 $1
July, 1923 $1
August, 1923 $1
November, 1923 $1
German Mark Year U.S. Dollar
4.2 1914 $1
1919 $1
1922 $1
January, 1923 $1
July, 1923 $1
August, 1923 $1
November, 1923 $1
German Mark Year U.S. Dollar
4.2 1914 $1
9 1919 $1
1922 $1
January, 1923 $1
July, 1923 $1
August, 1923 $1
November, 1923 $1
German Mark Year U.S. Dollar
4.2 1914 $1
9 1919 $1
500 1922 $1
January, 1923 $1
July, 1923 $1
August, 1923 $1
November, 1923 $1
German Mark Year U.S. Dollar
4.2 1914 $1
9 1919 $1
500 1922 $1
18,000 January, 1923 $1
July, 1923 $1
August, 1923 $1
November, 1923 $1
German Mark Year U.S. Dollar
4.2 1914 $1
9 1919 $1
500 1922 $1
18,000 January, 1923 $1
350,000 July, 1923 $1
August, 1923 $1
November, 1923 $1
German Mark Year U.S. Dollar
4.2 1914 $1
9 1919 $1
500 1922 $1
18,000 January, 1923 $1
350,000 July, 1923 $1
5,000,000 August, 1923 $1
November, 1923 $1
German Mark Year U.S. Dollar
4.2 1914 $1
9 1919 $1
500 1922 $1
18,000 January, 1923 $1
350,000 July, 1923 $1
5,000,000 August, 1923 $1
4.2 trillion November, 1923 $1
650,000
Sep-29
1,320,000
Sep-30
3,000,000
Sep-31
4,350,000
J ul-32
5,102,000
J an-33
6,100,000
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
unemployment in Germany
Nu
mb
ers
of
Un
emp
loye
d
1928 - Jan
1928 - Sept
1930 - Sept
1931 - Sept
1932 - July
1933 - Jan
Germany
•10 Million Marks would buy:–1/2 lb. of meat or 4 eggs or 2 lbs. of potatoes
–Bread was 2 million marks per loaf
Here we have a 1000 Mark banknote over-stamped in red with 1 billion !!!
The Dawes Plan - 1924• Germany’s reparations paid over a longer
period• America lent money to German industry and
also to the Government to pay reparations• German currency reorganised
USA Germany GB & FRANCEloans Rep’s
War debts
