Question

describe the impact of economic depression on Germany ?

Answer 1

The government was unable to deal with the economic crisis left by the war. It lead to a huge problem of money. In 1923, France occupied the Ruhr Valley, the heartland of German industry, because Germany was unable to pay war reparations demanded by the Treaty of Versailles. The Great Depression affected all capitalist economies in the world.



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Answer 2

The Great Depression affected all capitalist economies in the world. American banks immediately withdrew the loans they had made to Germany. Businesses closed, unemployment rose and inflation was rampant. German money had so little value, that it might take a wheelbarrow full of notes to buy a few groceries!

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