Title: Economic Conditions That Helped Cause World War II
Headings: Economic Conditions That Helped Cause World War II
Economic Conditions That Helped Cause World War II
Key Takeaways
Pretense of Peace
Deterioration of International Trade
From Imperialism to World War
The Bottom Line

Content: That seed was Article 231, which with its label “the war guilt clause” placed sole blame for the war on Germany and its need to make reparations payments as punishment. With such extensive reparations payments, Germany was forced to surrender of colonial territories and military disarmament, and Germans were naturally resentful of the treaty. As early as 1923, the newly constituted Weimar Republic began delaying payments on war reparations, which initiated a retaliatory response by France and Belgium. Both countries would send troops to occupy the industrial center of the Ruhr River valley region effectively appropriating the coal and metal production that took place there. As much of German manufacturing was dependent on coal and metal, the loss of these industries created a negative economic shock leading to a severe contraction. This contraction, as well as the government’s continued printing of money to pay internal war debts, generated spiraling hyperinflation . While price and economic stabilization would eventually be achieved – partly through the help of the American Dawes plan of 1924 – the hyperinflation wiped out much of the life savings of the middle class. The political consequences would be devastating as many people became distrustful of the Weimar government, a government that had been founded on liberal-democratic principles. This distrust, along with resentment over the Treaty of Versailles, lent itself to the increasing popularity of more left and right-wing radical political parties. Deterioration of International Trade
The onset of the Great Depression would serve to undermine any attempts at creating a more open, cooperative and peaceful post-war world.