The Economic Effects
The Treaty of Versailles placed all blame for World War I on Germany. Because of this, Germany was ordered to pay heavy reparations. Germany’s European holdings and overseas colonies were divided among the Allied Powers. Unlike its Central Powers ally, Austria-Hungary, the country of Germany was left virtually intact after World War I. The United States bailed Germany with loans to help them with war reparations. (“Reference.com", 2016) Hyperinflation and unemployment in post war Germany was astounding. The German currency, the Reichsmark was so devalued that it took piles and piles of money to purchase a loaf of bread. The United States on the other hand came out of World War I, virtually unscathed economically. In fact, the war only sped up America’s industrial production, which led to the economic boom trough the “Roaring Twenties”. The United States allies, France and Great Britain were able to recover economically without too much trouble. (Sullivan, 2016)
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References
- Children Playing with Money, Retrieved from https://justrevise.files.wordpress.com/2012/05/children-playing-with-money.jpg
- Laity, M. (1998, November 3). 1918: The end of stalemate. BBC News. Retrieved from Reference.com. (2016). Retrieved from https://www.reference.com/history/major-effects-treaty-versailles-1f8a8ee0c5d69202#
- Sullivan, N. (2016). Study.com. Retrieved from http://study.com/academy/lesson/economic-social-political-consequences-of-the-great-war.html
Credit: Harold