Economic Problems In Germany To learn what economic problems were in Germany To understand how this helped the Nazis

What economic punishment was placed on Germany in the Treaty of Versailles?

The Great Depression Following the Wall Street Crash in 1929, the global economy took a massive downturn Germany was already suffering under the pressure of the measures of the Treaty of Versailles The Great Depression affected Germany to a much greater extent than many other countries in Europe

Inflation Inflation exists in virtually all economies Inflation is simply the rise in the cost of living Normally, governments try to keep inflation at a low rate so that it does not have much of an effect on people It is normally between 1% and 3% in this country

Draw a diagram to show what inflation is

Hyperinflation Hyperinflation is an exaggerated form of inflation In Germany this meant that prices changed by 3000% over a very short period of time People carried around wheelbarrows full of money just to buy basic supplies People’s savings became worthless

Draw a diagram to show hyperinflation

Work out the change in prices for these basic products Bread (50p) Milk (75p) Butter (90p) Potatoes (£1) Coke (55p) Beer (£2.30)

Helping the Nazis People in Germany were desperate for this situation to change The mainstream politicians had failed, and shown that they were unable to make a difference to Germany’s problems People began to listen to extremist ideas, because they promised change The Nazis were able to offer economic reform that people wanted