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Why did Germany suffer economic and political problems in 1923

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Why did Germany suffer economic and political problems in 1923? Economic Problems The government borrowed massive amounts to finance the war as they believed that it would be able to repay back all of the money it had borrowed due to the belief that Germany would win the war and the allies would be made to pay them reparations which would cover the cost of the loans. However, this did not happen and thus it was Germany who had to pay reparations to the allies. The government's huge debt partly due to the rearmament and naval expansion before the war further added to the huge national debt Germany faced. The Treaty of Versailles' policies furthered the economic crisis that crippled Germany. The loss of land that was stated in the Treaty of Versailles meant tat Germany lost exceptionally economically industrial areas such which did nothing to help Germany's economic state. Alsace-Lorraine, Eupen and Melmedy were just a handful of areas that were handed over to allied countries. The Saar Basin was to be under allied control for 15 years and France would gain control of its coal mines. ...read more.


Due to the vast amount of debt and economic problems within Germany, payments of reparations would often be paid in kind with gold, timber and coal. On one such payment to France a cargo of timber telegraph poles did not arrive in France. Due to this France clamped down on Germany harshly and occupied the Ruhr with 100,000 French troops. This heavy industrial area was one of Germany's main economic areas of income and they could not afford to lose it. Unable to resist the occupation by force due to troop reduction in the Treaty of Versailles the German people resorted to passive resistance which was effectively a general strike. Business men, civil servants and workers were called to take part in passive resistance and anyone who did so would be compensated from public funds. Such government spending at a time when revenue was low due to the Ruhr Crisis was not a good. The government covered the gaping gap between incomes and spending by simply printing more money which meant that any confidence that was left in the mark was simply destroyed which led to currency delirium/hyperinflation. ...read more.


Noske called upon the army to suppress this putsch and they blatantly refused. General Von Seeckt told Noske "Reichswehr does not fire on Reichswehr" As the government fled it asked all of Germany's workers to come out on general strike in order to outnumber the Freikorps. In addition there was ongoing resentment due to the signing of the armistice and thus the stab in the back myth. If the government didn't sign the armistice they would be occupied by the allies. Many members of the right believed that it was the government's fault that the war was lost and not the armies. Next the right detestd the Treaty of Versaille and believed that they were being dictated to (a dictated peace) which further increased the hatred of the government. The resentment of government further increased more as many thought that they could have taken a harder stance with the allies instead of accepting what the allies said. The right fed of this resentment further due to what they thought as the humiliating War Guilt Clause. In this the government accepted all responsibility for the war which in itself left the right fealy disgraced and betrayed. They fed off this to gain support more their motives and extreme methods. ...read more.

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