Weimer Republic: Economic Problems

Germany coins 1931

• The war had left Germany bankrupt
• Germany was forced to pay war reparations amounting to 6 600 million pounds
• This amount was very detrimental to Germany economy but was reduced later
• The living standards of the Germans were very low
• Inflation was also on the rise in Germany
• Inflation led to the rise in food prices
• The Germany currency the Mark lost value
• Wages became very low and this led to many strikes in industries and factories
• The unemployment rate also increased as industries closed
• Germany lost most of its colonies and it was unable to generate resources to pay reparations
• France and Belgium occupied the Ruhr region and imposed an economic blockade on Germany
• After the occupation of the Ruhr devastated the economy of Germany
• Germany began to face serious food, power and fuel shortages
• Germany industries which were operating lacked raw materials, that is, rubber and coal
• Pensioners could no longer receive their monies and savings became worthless

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