ANSWERS: 1
  • 1919: 5% 1926: 10% 1932: 30% 1) "Germany's Weimar Republic was hit hard by the depression, as American loans to help rebuild the German economy now stopped. Unemployment soared, especially in larger cities, and the political system veered toward extremism. The unemployment rate reached nearly 30% in 1932. Repayment of the war reparations due by Germany were suspended in 1932 following the Lausanne Conference of 1932. By that time Germany had repaid 1/8th of the reparations. Hitler's Nazi Party came to power in January 1933." Source and further information: http://en.wikipedia.org/wiki/Great_Depression 2) "1919-1928: Under the Treaty of Versailles, Germany must give up territory (and population) and pay reparations. War debt, reparations, and reckless printing of money cause crippling hyperinflation in the postwar years, while unemployment remains high through the '20s. The onset of the Depression ends a slight recovery. Government spending increases to 25 percent of GDP between the wars, up from 15 percent. 1929-1932: Depression in the United States prompts creditors to call in their loans to Germany. Unemployment rises to nearly 30 percent in 1932. Budget cuts designed to convince the Allies Germany was suffering too much to pay reparations do lead to a moratorium, but also cause misery and discontent, which in turn fuels the Nazi rise to power. 1933-1938: With the Nazis in power, subsidies boost industries tied to arms and self-reliance. Unemployment is almost zero, but wages are low, and foreign reserves shrink to fund expansion. Unlike Japan, Germany does not limit consumer goods, and rearmament is not yet fully planned. In 1936 Hitler urges Germany to be ready for war by 1940 through a Four-Year Plan that sets production quotas." Source and further information: http://www.pbs.org/wgbh/commandingheights/lo/countries/de/de_economic.html 3) "Germany experienced hyperinflation in 1923 and chronic high unemployment throughout the 1920's as a result of the inability of the governemtn to cope with the problems of Germany effectively. When the unemployment rate jumped in 1930 as a result of the onset of the Great Depression the support for the Weimar Republic drained away." Source and further information: http://www.sjsu.edu/faculty/watkins/germany.htm 4) "The carefully thought-out social and political legislation introduced during the revolution was generally unappreciated by the German working classes. The two goals sought by the government, democratization and social protection of the working class, were never achieved. This has been attributed to a lack of pre-war political experience on the part of the Social Democrats. The government had little success in confronting the twin economic crises following the war. The permanent economic crisis was a result of lost pre-war industrial exports, the loss of supplies in raw materials and foodstuffs from Alsace-Lorraine, Polish districts and the colonies along with worsening debt balances and reparations payments. Military-industrial activity had almost ceased, although controlled demobilisation kept unemployment at around one million. The fact that the Allies continued to blockade Germany until after the Treaty of Versailles did not help matters, either." "The Weimar Republic had some of the most serious economic problems ever experienced by any Western democracy in history. Rampant hyperinflation, massive unemployment and a large drop in living standards were primary factors. In 1923–1929 there was a short period of economic recovery, but the Great Depression of the 1930s led to a worldwide recession. Germany was particularly affected because it depended heavily on American loans. In 1926, about 2 million Germans were unemployed - this rose to around 6 million in 1932. Many blamed the Weimar Republic." Source and further information: http://en.wikipedia.org/wiki/Weimar_Republic#Reasons_for_failure (so the rate was about 5% just after the war and 10% in 1926)

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