Answer to Question #159373 in History for dina

Question #159373

what is one main reason Germany's economy was in a depression after wwl?

Expert's answer

Germany’s economic depression was brought about by various genuine shortcomings in the economy. The waiting impacts of World War I (1914-1918) caused financial issues (Balderston, T.1983). Germany was financially devastated after its defeat in World War I. Because of the Versailles treaty, Germany had to pay extraordinarily sizeable reparations to France and Great Britain. Also, the Versailles arrangement, which many concurred was dreadfully cruel, constrained Germany to surrender thirteen percent of its land. Germany attempted to recover by making transportation projects, modernization of force plants, and gas work in attempts to fight the expanding unemployment rate. Social spending was increasing at an unbelievable rate. By 1913, the government authority was spending roughly 20.5 per occupant and by 1929 it came to more than 100 percent per resident. The elevating cash which was used for social spending joined with plunging incomes caused continuing deficits. At last, municipal finance collapsed in 1930 because of debts and common spending plans. Municipal officials and legislators could not restore order to the financial budgets. Further adding to Germany's economic issues, income from annual duty started to fall as well.

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