Life in the Weimar Republic Leading to Fascism & Hitler.

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Presentation transcript:

Life in the Weimar Republic Leading to Fascism & Hitler

Let’s Review Germany’s Treaty of Versailles Punishments… Loss of territory Huge reduction of military King must step down— Democracy must replace monarchy Acceptance of Guilt for WWI — ”Guilt Clause” Reparations—Billion dollar payments to England, France, Russia, USA

Weimar Republic, what was it? Born out of defeat in WWI Weimar is the new Democratic system of government in Germany Named for the city in which the constitution was developed A Parliamentary system, not a US style Presidential system

Understanding Inflation & Hyperinflation Inflation: Rise in the price of any good or service Hyperinflation: when the inflation rates exceeds 50% a month Germany in 1923 experienced 322% inflation * If a cup of coffee cost you $1 in 2009, by 2010 it will cost you $322.00!!!

Inflation in Germany According to the provisions of the Treaty of Versailles, Germany was required to make reparation payments for war damages. In April, 1921, the Allied Reparations Commission determined that Germany owed 132 billion marks (33 billion U.S. dollars), payable in annual installments of 2.5 billion marks. In 1921, the new German republic, known as the Weimar Republic made its first payment.

Inflation in Germany By the end of the war, the German mark had lost half of its value. People experienced this phenomenon as a doubling of the prices they were paying for goods and services.

This girl is actually burning the German Marks because they were worthless!

German MarkYearU.S. Dollar 1914$1 1919$1 1922$1 January, 1923$1 July, 1923$1 August, 1923$1 November, 1923$1

German MarkYearU.S. Dollar $1 1919$1 1922$1 January, 1923$1 July, 1923$1 August, 1923$1 November, 1923$1

German MarkYearU.S. Dollar $ $1 1922$1 January, 1923$1 July, 1923$1 August, 1923$1 November, 1923$1

German MarkYearU.S. Dollar $ $ $1 January, 1923$1 July, 1923$1 August, 1923$1 November, 1923$1

German MarkYearU.S. Dollar $ $ $1 18,000 January, 1923$1 July, 1923$1 August, 1923$1 November, 1923$1

German MarkYearU.S. Dollar $ $ $1 18,000 January, 1923$1 350,000 July, 1923$1 August, 1923$1 November, 1923$1

German MarkYearU.S. Dollar $ $ $1 18,000 January, 1923$1 350,000 July, 1923$1 5,000,000 August, 1923$1 November, 1923$1

German MarkYearU.S. Dollar $ $ $1 18,000 January, 1923$1 350,000 July, 1923$1 5,000,000 August, 1923$1 4.2 trillion November, 1923$1

Germany 10 Million Marks would buy: –1/2 lb. of meat or 4 eggs or 2 lbs. of potatoes –Bread was 2 million marks per loaf

Here we have a 1000 Mark banknote over- stamped in red with 1 billion !!!

The Dawes Plan Germany’s reparations paid over a longer period America lent money to German industry and also to the Government to pay reparations German currency reorganised USAGermany GB & FRANCE loans Rep’s War debts