How Did The Treaty Of Versailles Have An Economic Impact On Germany

Everyone wants peace but it is not often that it is accomplished, especially between nations. Even though World War 1 was over, disputes between nations did not come to an end, but continued. The Treaty of Versailles was one of many attempts. It was a document that ended World War 1; however, it solely blamed Germany for the war and forced Germany to pay reparations. Furthermore, the treaty was also unfair because Germany did not even attend the meeting, Germany was blamed and humiliated, and they also had to pay everything.

The Treaty would do several things that would make once proud Germany a nation what was beat and would have to pay the price of war, both literally and figuratively. Woodrow Wilson, current President of the United States at the time of the war, had the philosophy that there should be no winners, as with winners there were losers. He had 14 points that would end the war, and leave little to no gunpowder to ignite another. However, they British and French did not heed these warnings, as they would go on the limit Germany’s army. Including officers, the army would be limited to 100,000 men (Document B). While it can be seen as rational, as a restricted army would limit Germany’s chance of wanting to cause another war, it could also be seen as embarrassing. As Belgium, a country that was one of the smallest at the time had 530,000 troops after Article 160 of the treaty was passed (Document B). Now if a country that is almost one-eighth the size of you, has an army that is 5 times larger than your it is quite embarrassing, especially at a time that the size of your army was almost representative of your power. The new country of Poland had 3.2 million troops, despite its young age, (Document B). All of this was just simply unbearable to the German population, but the fact that they had to agree to a guilt clause

This then starts to lead to World War II because Hitler is slowly bringing Germany back up again, and so, they start to follow him and his ideas which starts to cause another world

Germany, after losing World War 1 encountered social and economic changes. The treaty of Versailles, which was one of the peace treaties created at the end of the war, made various restrictions to Germany. Consequently, the Nazi party, greatly affected by this punishment, tried to reestablish Germany prior wealth. Germany was blamed for the harm caused during World War I, and therefore, it placed total responsibility on the reparation payments, creating huge problems that disrupted their good economic development. Part of their territory had to be given to nations such as Belgium, France Poland and Denmark, how it is clearly stated in part II of the treaty 1.

The Treaty of Versailles was meant to prevent another devastating World War, but instead it gave rise to the Nazi party and started the Second World War. World War I was a deadly internationally battle that killed 10 million soldiers and seven million civilians, and wounded ten million more. Germany and Austria-Hungary fought against France, England, Russia, and the United States, and ultimately lost. After the war ended, the leaders of the world, except from Germany, met and formed the Treaty of Versailles, which was signed on June 28, 1919. This agreement was meant to prevent future German aggression through strict rules. In reality, it helped cause World War II by imposing territorial losses, military restrictions, economic reparation, and a War Guilt Clause.

One of the terms that Germany had to meet was A large debt in gold for reparations to the other countries, Which was 132 billion gold marks (Doc C). Although they had to pay off reparations to other counties they did not have to rebuild bridges, roads, schools, and business as did their other allies. Germany had to suspend payments due to the Great Depression in 1931 also

“Germany undertakes, that she will make compensation for all the damage done to the civilian population”(Doc C). Germany had to pay millions and billions of dollars for the damage they had caused. This can cause lots of conflict and hatred in other countries. The Treaty of Versailles caused Germany to lose lots of money, creating conflict, which they didn't like. How Germany overall felt about the Treaty of Versailles, of course, the Germans were very mad about the Treaty because of all the things it cost them.

Though the amount Germany had to pay in reality was less than the amount stated, they still had to pay over $30 billion in reparations to victorious countries. Other restrictions were placed on Germany, as seen in the Treaty of Versailles, which calls for Germany to cut the size of their army and prohibits Germany from taxing exported goods to Allied Countries that are not also taxed to the rest of the world (Document 1). Germany’s response (Document 4) to this highlights the unfairness present in these requests, “The sum to be paid is to be fixed by our enemies unilaterally, and to admit of subsequent modification and increase…” showing that there is no room for negotiation on Germany’s

Seven and a half months after the bloody fight of World War 1, which had begun on June, 28 1919; it finally ended in November 11, 1918, the Versailles Treaty was formed by the Allied nations. This treaty was formed by Great Britain, France, and the United States after defeating Germany and leaving an estimated amount of 10 million soldier and 7 million civilian casualties, when the Treaty of Versailles was formed, France wanted revenge for the suffering caused by World War I, and England agreed to this. The Versailles Treaty, lead to World War II since it produced more conflicts with Germany, when they were angered and humiliated, imposing four, harsh ways such as: territory loss, military restrictions, economic reparations, and “war guilt.”

Besides, Germany held no control over how much and when they were required to pay. According to article 233 of the Treaty of Versaille “the commission shall.draw up a schedule of payments prescribing the time and manner for securing and discharging the entire obligations within a period of thirty years from May 1, 1921.” Starting from 1921 Germany was required to pay 367 billion gold marks which according to the chart from varied sources translates to 367 billion US dollars to be paid over the span of 30 years. This provision made sure that Germany paid the compensation routinely, without the economy completely collapsing from immense debt. The massive debt imposed on Germany strained its economy, and worsened the problems of inflation and unemployment.

(Doc C) The Allies got to pick the amount of money that Germany had to pay, it landed at 132 gold marks which translates to $367 billions dollars in 2010. While Germany was in an economic mess, Hitler thought it was a perfect opportunity to rise to power and lead Germany back to

They will make compensation for all damage done to the civilian population of the Allied and Associated powers and to their property during the period of the belligerency (Doc C). Germany was angered and humiliated for the reparations they had to pay. By the year 1929 Germans only paid two billion marks over the next three years for they are angered. In 1933 Hitler came to power and stops all of German reparation payments for he does not want to pay for them for he believes he should not have to pay (DocC). Germany stops paying their reparations for they were finally going to stand up for what they believe in. They want back the land that was once there that was taken under the Treaty of Versailles. Germany stops the reparation, making another reason for the beginning of

An economic failure in the result to the treaty was hyperinflation. It occurred due to the given amount of reparation payments, which were up in the multiple millions. The war had left the German economy disastrous already, and inflation was rising quickly. The banks started to print more bank notes to solve the problem. The harsh effect, however, was that the money became worthless, as less goods were there to be sold, and so heavy inflation followed. Germany could only pay its first reparation with its industrial products (a prime source for employment, and exports, thus the stability of the economy.) so when Germany declared they couldn't pay the second instalment, the French invaded the Ruhr, the main source of industrial activity for Germany. The government's response was to encourage strikes; this only led two to things; less German produce, with workers still needing to be paid. In attempt to correct this, government printed even more bank notes. Heavy inflation soared to hyperinflation. The middle class saw their savings being brought to no value, right through to the workers not being able to buy a loaf of bread. This shows a chain of failures from the republic- it contributed to the commencement of hyperinflation, and therefore the invasion of the Ruhr- loss of industrial economy. Generally,

The Treaty of Versailles was a very unfair document towards Germany. According to Mike Dowling, the treaty had taken away Germany's overseas colonies and their coal source. Germany could not build large ships and their army was a joke.

The treaty humiliated the Germans. The war-guilt clause forced Germany to accept sole responsibility for World War I. And although the German military had played a major role in igniting the war, other countries in Europe had been guilty of provoking political crises before the war too.