how political radicalism lead to economic crisis in german
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Political Radicalism
A revolutionary uprising called Spartacist League came up along with the Weimar Republic. It was based on the pattern of the Bolshevik Revolution in Russia and demanded Soviet style governance. The Socialists, Democrats and the Catholics who were against the Spartacist League met at Weimar to establish a Democratic Republic. They crushed the uprising with the help of the "Free Corps", a war veterans organisation. Later the Spartacists formed the Communist Party of Germany. After this, the Communists and the Socialists became irreconcilable enemies and did not join together against Hitler.
Economic Crisis of 1923
Germany had taken loans for the war and had to pay war reparations only in gold. The gold reserves were depleted. The French occupied Ruhr, a leading industrial area, when Germany refused to pay the reparation. Germany printed paper currency recklessly, in retaliation. So the value of the German Mark collapsed and the prices of goods soared. The Dawes Plan was introduced to help Germany to come out of the financial crisis.
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