1. Causes of WWII

2. 1. Economic Problems in Germany: Hyper -inflation
Germany was forced to pay war debts for WWI to the Allied nations
Germany borrowed the money
Eventually, all the countries wealth was paying off war debts
Printed $$ to pay off debts – massive inflation
1922 – 300 marks to buy $1 US
1923 – 50,000 marks to buy $1 US

3. Economic Problems
People began to barter and trade goods and services rather than use money
Advertisement from Schmidt’s Deli
1918 Price
1923 Price
Cabbage
Dill Pickles
Wieners
4.50 marks per kg
2.80 marks per kg
6.60 marks per kg
13 million marks per kg
12.7 million marks per kg
15.4 million marks per kg

4. This picture shows a woman using German marks as fuel in her furnace.
The value of $
This picture shows a woman using German marks as fuel in her furnace.

5. Kids using bundles of marks as building blocks.
Payroll money being transported in laundry baskets

6. 2. Political Instability
Economic problems lead to political instability
3 main political ideologies (beliefs about role of government) emerge:
Communism
Social Democracy
Fascism (National Socialism – Nazi Party)

7. Communism Purpose of government is to serve the needs of the people
Government should be run by workers – democratic in principle
Industry and agriculture should be owned by the state
No private property allowed
Supporters: workers, unemployed, some teachers/professors

8. Social Democracy
Purpose of government is to balance the needs of the people with rights of private business in a capitalistic economy
Government run by elected representatives
Treaty of Versailles must be honored
Constitution guarantee rights of minorities, workers and freedom of press
Supporters: workers, some professionals, religious minorities

9. Fascism / National Socialism (Nazis)
Needs of the state (country) come before needs of individual
Government should be run by the wealthy and supported by the army
Private ownership of business allowed – but government reserves right to dictate terms
Democracy is a problem
Jews, foreigners, communists are responsible for Germany’s problem
Supporters: army, unemployed, big business & wealthy

10. 3. Treat of Versailles
Treaty of Versailles imposed severe conditions on Germany
New boundaries, reparation payments and military restrictions were seen as unjust
Germans felt humiliated by Treaty – bitterness and anger

11. 4. Depression and Unemployment
1929 Stock market crash – world wide depression
Germany could no longer afford American products
US banks could no longer lend to German businesses – German business went bankrupt – job losses
Living standards fell drastically – families in Berlin were living in tents, farmers guarded their fields with rifles

12. The Rise of Hitler
In Germany, Adolf Hitler had been regarded as a fringe political player – did not have popular support
In the midst of this economic and political crisis the people of Germany began to listen to Adolf Hitler