Germany: How far do you agree that the economic challemges faced by Weimar governments, in the years 1918-32, were caused mainly by the impact of the Treaty of Versailles?

Introduction

• Was an important cause of economic challenges, but not the main one

• Main one was arguably the Great Depression

• Post-1929 was when the Nazi Party built momentum

Paragraph 1

• Could be argued that ToV was the main cause

• Germany forced to pay 132b gold marks in 1921

• Lost 48% of iron ore production

• In 1923, 60,000 French and Belgian troops occupied the Ruhr

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• ToV was not the main cause of economic challenges

• Received RM25b in foreign loans between 1924 and 1930

• In 1928, German industrial production rose 12% above 1913 levels

• 1924-29, real wages increase by 9%

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• For the most part, Weimar govt policy weakness caused greatest problems

• During hyperinflation, 4.2t marks to the dollar by Nov 1923

• Weimar govt paid 2m Ruhr workers during passive resistance in 1923

• By early 1924, a loaf of bread costed 200b marks

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• Great Depression also significant

• German unemployment rose from 1.3m in 1929 to over 6m in 1932

• German industry fell by 40% 1929-32

• Over 2,000 businesses collapse during the depression