15.1: Instability After World War 1

After World War 1, the German's were forced to pay reparation for the damage done in the war, what was the plan to payback these reparations?

After the war, the Treaty of Versailles was strictly enforced. The Allied Reparations Commission determined that Germany owed 132 billion German marks in damages. It was agreed that they would pay 2.5 billion marks annually until the debt had been paid.

What was the effect of the Germans not paying reparations to the Allied Forces

France sent troops to seize Germany's most critical industrial and mining center. Essentially they occupied and seized resources to ensure payment.

What John Keynes believe regarding economic problems in Britain?

John Maynard Keynes argued that unemployment came from a decline in demand, not overproduction. He thought governments could increase demand by creating jobs through spending.

What caused the Great Depression in Germany?

One reason was that the group of downfalls in other economies affected Germany. Also, when the US stock market surged many investors pulled money out of Germany to invest in stocks. And most importantly, massive inflation.

Despite this strict plan of reparation payment, what happened in Germany that caused the end of reparation payments?

The German government faced a financial crisis and determined it could not pay reparations.

Explain the impact of the Great Depression on the power of the Weimar Republic in Germany.

The Weimar Republic was plagued by serious economic issues, experiencing extreme inflation and the Great Depression, paving the way for the rise of extremist parties.

What came as a result in Germany's Great Depression internally?

The main impact was increased government activity in the economy. Also, it allowed people to follow political leaders who offered simple solutions to the crisis in return for dictatorial power.