what brought about the great economic depression in germany?explain in 5points?
Answers
Answer:
Explanation:
I assume you mean the great depression in 1929. It began in the US and spread across the world, but was probably worst in Germany.
1. The great depression began in the US. The wall street stock markets crashed - because the US is such an influential country, its economic disaster spread to the rest of the world.
2. The treaty of Versailles, the treaty which ended WW1 made Germany pay loads of money to other countries due to the expenses of the war. Due to this fact that Germany was already in debt, it made the great depression even worse in Germany
3. Germany had been taking loans from the US.
Under the Marshall plan, Germany had been taking loans from the US in order to rebuild its economy and pay back the debts (point 2). US banks started to ask for that money back, and Germany didn't have it at that point, which put them even more in debt. Additionally, they had been extremely reliant on these loans, and without it, they were doing worse.
4. Industrial production declined
Due to the higher prices of things, people were buying less, so the amount of stuff that was produced rapidly declined. This caused many other problems such as unemployment and inflation. The inflation got so bad that people were burning money because it was cheaper to do so than to buy firewood.
5. Weaknesses of the Weimar Republic (german government)
The Weimar republic was a very new form of government, because beforehand, Germany had been ruled autocratically (by Kaisers). The new government was unequipped and unexperienced to solve problems such as hunger, malnutrition, inflation, unemployment, etc. The inability of the government to limit the effects of the depression was one of the main reasons why it got so bad in Germany
I hope this helps :)