| − | Germany's involvement and eventual defeat in [[World War I]] led to a harsh turn in German fortunes. The government of the German Kaiser was replaced by the [[Weimar Republic]], and the new social-democratic government had to accept the resulting "peace" established by the [[Treaty of Versailles]]; it forced Germany to take full blame for the war and to pay huge reparations to the allied victors. As reparations payments couldn't be paid in full through hard currency, compliance was forced through goods such as coal and ore and French occupation of German factories in the Ruhr. The German economy collapsed and hyper-inflation set in, driving the mark from an exchange rate from 9000 Mark for 1 US Dollar in January 1923 to 4.2 trillion Mark to the US Dollar in November 1923 [http://www.germannotes.com/hist_inflation.shtml]. The combination of the Versailles Treaty, which the Germans considered to be harsh and unfair, combined with what was happening to the German nation left the German people bitter and disenchanted. An introduction of a new currency stabilized the German economy and from 1925 to 1928 German productivity grew from a value of 70 billion RM to 88 billion RM [http://www.sgipt.org/politpsy/finanz/schuldp/weimar.htm]. This change turned out to be shortlived with the onset of the [[Great Depression]] and renewed hardship. Germany entered a period of permanent political and constitutional crisis. It was during these difficult years starting with the end of World War I that new voices rose up in Germany, one of which was from a struggling artist turned revolutionist named [[Adolf Hitler]]. Hitler slowly gained followers and rose to a prominent place in the government before finally taking control in a country that was desperate to look up to someone to restore national pride. An economic boom ensued as Hitler pursued an aggressive foreign policy and remilitarization, which eventually led to [[World War II]] and defeat. Germany was once again in ruins. | + | Germany's involvement and eventual defeat in [[World War I]] led to a harsh turn in German fortunes. The government of the German Kaiser was replaced by the [[Weimar Republic]], and the new social-democratic government had to accept the resulting "peace" established by the [[Treaty of Versailles]]; it forced Germany to take full blame for the war and to pay huge reparations to the allied victors. As reparations payments couldn't be paid in full through hard currency, compliance was forced through goods such as coal and ore and French occupation of German factories in the Ruhr. The German economy collapsed. Inflation, which had seen the value of the German mark fall from 8.9 marks to the dollar shortly after the war<ref>The 20th Century Day by Day, Dorling and Kingdersley, 2000, Pg. 308</ref> to 9,000 marks to the dollar by the start of 1923, now careened out of control as hyper-inflation set in. By November 15th 1923, the exchange rate was 4.2 trillion marks to the US dollar. <ref>http://www.germannotes.com/hist_inflation.shtml</ref>. The combination of the Versailles Treaty, which the Germans considered to be harsh and unfair, combined with what was happening to the German nation left the German people bitter and disenchanted. An introduction of a new currency stabilized the German economy and from 1925 to 1928 German productivity grew from a value of 70 billion RM to 88 billion RM <ref>http://www.sgipt.org/politpsy/finanz/schuldp/weimar.htm</ref>. This change turned out to be shortlived with the onset of the [[Great Depression]] and renewed hardship. Germany entered a period of permanent political and constitutional crisis. It was during these difficult years starting with the end of World War I that new voices rose up in Germany, one of which was from a struggling artist turned revolutionist named [[Adolf Hitler]]. Hitler slowly gained followers and rose to a prominent place in the government before finally taking control in a country that was desperate to look up to someone to restore national pride. An economic boom ensued as Hitler pursued an aggressive foreign policy and remilitarization, which eventually led to [[World War II]] and defeat. Germany was once again in ruins. |