explain the impact on Germany because of the refusal to pay war compensation in 1923.
Answers
By 1929 Germany had rebounded to become a prosperous country but was still paying millions of dollars in compensation for world war I.
However, 1929 was turning point as the Great Depression of the US reached Europe. Germany was not able to secure loans from US banks and thus found it hard to make compensation payments.
On the other hand, the economy was worsening, unemployment was rising and people were moving toward right-wing populous movements.
The US and Germany had a central role in post world war I economics of Europe. Many countries had borrowed money from the US after the war and they were using German compensation to pay off their debts. Germany, on the other hand, was taking loans from the US to pay it's compensation.
Hence, a depression in the US, not only resulted in Germany getting less loans, but subsequently had an impact on all of Europe.
As those countries put more pressure on Germany, the NAZI party quickly took hold, promising people a better life and relief from misery