Economic factors

• Conditions in which authoritarian states emerged - Economic factors exam.

  <|>Treaty of Versailles implications:

  • Loss of territories in Europe hindered Germany's ability to make money
  • Loss of overseas colonies limited Germany's economic potential
  • Forced to pay a heavy debt of 132 billion gold marks for damages from the war
• League of Nations required Germany to make annual payments, leading to economic strain

  • Between 1919 and 1923, Germany made payments, but faced issues in 1923
  • Economic struggles during this time period contributed to the rise of the Nazi Party
• Ruhr Crisis:

  • Started in January 1923 and lasted until 1925
  • France and Belgium repossessed the Ruhr Valley due to Germany's inability to make payments
  • This led to hyperinflation in Germany, with the price of bread skyrocketing from 160 marks to 200 billion marks
  • The crisis significantly weakened the German economy and fueled extremist ideologies like Nazism
• Great Depression impact:

  • Germany survived the Ruhr Crisis but was still recovering
  • German economy was starting to show signs of improvement
  • The Great Depression caused another economic crisis, leading to a rapid increase in Nazi Party support
  • Nazi Party's power grew from 2% to 37% due to economic hardships faced by the German people