Economic problems were the main reason the governments of the Weimar era failed Discuss.

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Bethan Colborne                History

“Economic problems were the main reason the governments of the Weimar era failed” Discuss.

        During the Weimar era there were much economic problems in Germany; many historians claim that this was the main reason for the failure of the governments of Weimar.

        The economic problems in Germany began directly after WWI, when the treaty of Versailles was signed. The treaty was deemed by many Germans as a punishing and degrading document, because it forced them to give up areas that were rich in resources and forced them to pay massive reparation payments. While precise figure the Germans were expected to pay in unknown, the figure was huge and the Germans struggled to pay the large bill. Many of the resource rich area’s such as Rhineland were taken from the Germans resulting in large rates of unemployment and unrest. In Germany at this time striking workers were paid by the state therefore the state had to pay out mass amounts of money for the thousands of striking workers.

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        The damage done to Germany’s economic state because of the reparations they were forced to pay, discouraged market loans, and Germany made a futile attempt to pay back these reparations and fix the economic crisis through Quantative easing.  This only served to create hyperinflation which drastically worsened Germany’s financial state. By august 1923 a US dollar was worth 1 million marks. Having already worsened the economic state Weimar called for a currency reset and replaced the old currency with a new one called the Rentenmark; this allowed them to begin paying reparations again.

        In October 1929 the Wall Street crash ...

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