What effects did Germany's war debt have on its economy?
What will be an ideal response?
Answers will vary. After making its first payment, the German government defaulted. Great Britain, unlike the more deeply affected France and Belgium, was willing to work out a moratorium and potential reduction of the payments. The Ruhr occupation, by France and Belgium in order to forcibly extract payment, unified Germans in their sour opinion of both the Versailles Treaty and the victorious powers. By extracting from Germany some of its most important economic resources (steel and coal), the occupation generated a severe economic crisis. The German government made the catastrophic mistake of printing more money, which led to hyperinflation. The buying power of all strata of society vanished: suitcases filled with paper money were not enough for a week's groceries. The professionals and small businessmen who had been the backbone of Germany's social and economic stability were turned against their own government virtually overnight.
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