How Did The Treaty Of Versailles Affect Germany

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The Treaty of Versailles had a very powerful significance on Germany from 1919-1939. Some say that the treaty had a positive or negative impact on Germany. I believe that the treaty caused a negative significance towards Germany when it was signed on June 28,1919. The Treaty of Versailles took away Germany's land also including all of their overseas colonies, cut their population, slashed their industries in half, and issued a mandatory disarmament. The treaty also caused hyperinflation and major economic depression soon after the treaty was signed. Signing the Treaty of Versailles completely crippled Germany for two decades after it was signed..
Before the treaty was even signed it was set up to take as much land from Germany as all the …show more content…

Due to how much Germany had to pay they started taking out loans and printing out money to pay back the reparations, unfortunately this caused major hyperinflation through the nation. Hyperinflation is caused when there is a significant increase in printed money but no Gross Domestic Product to backup the newly printed money. Hyperinflation was so high at one point that German citizens had to bring a wheelbarrow of banknotes to pay for one loaf of bread. Germany had printed out so much money to pay for reparations that when the money cycled through the economy, Germany's currency was valued at virtually nothing.
Germany was in very serious trouble due to the hyperinflation through the country. To solve this critical problem the German government introduced paper currency into the economy. The paper currency was called Ruhrkampf and to the government officials this was the only solution to the worsening crisis. This lifted the pressure off of the economy and the hyperinflation started to dissipate when the new currency ran through the country and helped the nation come out of a very hard part of history, unfortunately it wasn't the best solution and the currency later fell after the fall of

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