The Economical Impact of the Treaty
The German Depression
After World War I, Germany went into a state of economic depression because of the withdrawl of money for the war and the confiscation of money from World War I. Many Germans were left without jobs because their families were killed or they were fired because of the economy. This is a building that is serving free coffee and doughnuts for the unemployed Germans. These houses were common throughout the German depression . Germany had to pay countries back that she borrowed from during the war. This is one reason for the German depression. Another is that Germany had to pay reparations totaling 33 billion U.S. dollars.
Germany was blamed for World War I. Germany was held accountable for the cost of the war. Germany had to pay monthly reparations that would total to be 6,600 Marks. Also, Germany had lost raw material. Germany's economy had a hard time coping with this loss. The depression started because of reparations paid to all of the opposing coutnries, and also, the economy was streched very thin during the war. One of the reasons Germany went into the depression is because she lost one if her most important assets, raw material. The raw material was part of the reparations that Germany had to pay to other countries after the war. The treaty did almost nothing to improve the economies of Italy and France.
Picture of a German Mark