Economic problems in Germany (TOV) Essay Sample
The sum Germany had to pay for reparations was merely intolerable. They had to pay a sum of 6650 million lbs and this would take up to 3 coevalss. Reparation was partially by money and the remainder in footings of goods. such as coal. The loss of coal caused adversities to the German authorities and the people. Coal was an of import natural resource in Industrialization. The reparations reduced the sum of coal Germany possessed and this had an inauspicious consequence on Germany’s economic system. Germany saw the reparations as unreasonable for a state that was besides retrieving from the devastation caused by WWI.
When Germany could non pay France the reparations. the Gallic authorities invaded the Ruhr. where many heavy industries were located. This farther aggravated the economic job as production fell and the monetary values of manufactured goods later went up. In response to this. the Weimar authorities printed more money which resulted in hyperinflation. The German currency was of no worth. People’s nest eggs were of no worth. the money was used to get down a fire and to make many other things. Many people suffered ; monetary values rose and rewards fell. Standards of life dropped. and the unemployment rate worsened.
Gustav Stresemann introduced a new currency. the Rentenmark. to counter the lifting rising prices and the increasing ineptitude of the German grade. He managed to negociate with the Allied powers so that paying the reparations would non be a dashing undertaking. The Dawes program which was implemented in 1924 needed German to pay lesser reparations. The USA would give loan to help Germany. The Gallic troop besides agreed to go forth the Ruhr. Germany agreed to giving gold to the Agent General for reparations so that it could besides be invested and the net incomes would be used to pay reparations. German railroads would besides be supervised by an international group and would be used to pay off reparations. However. this program merely worked short term.
In 1929. the Young program was implemented and reparations were cut farther. Germany was besides given more old ages to pay off reparations.
