Understand the impact of Germany's WWI defeat, the Treaty of Versailles, and the creation of the Weimar Republic amid political and economic crises.

Birth of the Weimar Republic:

• • Coincided with the revolutionary uprising of the Spartacist League, modeled on the Bolshevik Revolution in Russia.
  • Soviets of workers and sailors were established in many cities.
  • The political atmosphere in Berlin was charged with demands for Soviet-style governance.
  • Opponents of this movement (Socialists, Democrats, Catholics):
    • Met in Weimar to establish a democratic republic.
    • Crushed the uprising with the help of the Free Corps (a war veterans organization).
  • The Spartacists, after the uprising, founded the Communist Party of Germany.
  • Communists and Socialists became irreconcilable enemies, weakening opposition to Hitler.
• Impact of the Treaty of Versailles:
  • A harsh and humiliating peace for Germany:
    • Lost:
      • Overseas colonies
      • 10% of its population
      • 13% of its territories
      • 75% of its iron
      • 26% of its coal
    • The Allied Powers:
      • Demilitarized Germany to weaken its power.
      • Imposed the War Guilt Clause, holding Germany responsible for the war and damages.
      • Forced Germany to pay £6 billion in reparations.
      • Occupied the resource-rich Rhineland during the 1920s.

      

  • Many Germans blamed the Weimar Republic for:
    • The defeat in the war
    • The humiliation at Versailles
• Economic Crisis of 1923:
  • Germany fought the war largely on loans and had to pay reparations in gold.
  • This depleted gold reserves while resources were scarce.
  • In 1923, Germany refused to pay reparations, leading to:
    • The French occupation of Ruhr to claim coal.
    • Germany's retaliation with passive resistance.
    • Reckless printing of paper currency, causing:

      

      • A collapse in the value of the German mark.
      • A hyperinflation crisis, where:
        • April: 1 USD = 24,000 marks
        • July: 1 USD = 353,000 marks
        • August: 1 USD = 4,621,000 marks
        • December: 1 USD = 98,860,000 marks
  • Prices of goods soared, with people using cartloads of currency for basic purchases.
  • The Dawes Plan (introduced by the USA) reworked reparation terms and eased the financial burden.
• The Years of Depression (1929–1932):
  • Initial stability (1924-1928) was dependent on short-term loans from the USA.
  • The Wall Street Exchange crash in 1929 led to:
    • The Great Economic Depression.
    • Massive unemployment and economic collapse worldwide.

    

  • Impact on Germany:
    • Industrial production fell to 40% of 1929 levels.
    • Unemployment rose to 6 million.
    • People resorted to:
      • Desperation (e.g., placards reading "Willing to do any work").
      • Queuing at employment exchanges.
      • Criminal activities due to lack of opportunities.
    • Middle classes and small businesses:
      • Faced anxiety of proletarianization (becoming part of the working or unemployed classes).
    • Peasants were affected by:
      • A sharp fall in agricultural prices.
    • Women faced despair, unable to provide for their families.
• Political Instability of the Weimar Republic:
  • Inherent defects in the Weimar Constitution:
    • Proportional representation made it difficult to achieve a majority, leading to weak coalitions.
    • Article 48 allowed the President to:
      • Impose emergencies.
      • Suspend civil rights.
      • Rule by decree.
  • The Republic saw 20 different cabinets in a short period, lasting on average 239 days each.
  • People lost confidence in democracy, which failed to address the crisis.