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Economic Problems In Germany

Economic Problems In Germany. To learn what economic problems were in Germany To understand how this helped the Nazis. What economic punishment was placed on Germany in the Treaty of Versailles?. The Great Depression.

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Economic Problems In Germany

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  1. Economic Problems In Germany To learn what economic problems were in Germany To understand how this helped the Nazis

  2. What economic punishment was placed on Germany in the Treaty of Versailles?

  3. The Great Depression • Following the Wall Street Crash in 1929, the global economy took a massive downturn • Germany was already suffering under the pressure of the measures of the Treaty of Versailles • The Great Depression affected Germany to a much greater extent than many other countries in Europe

  4. Inflation • Inflation exists in virtually all economies • Inflation is simply the rise in the cost of living • Normally, governments try to keep inflation at a low rate so that it does not have much of an effect on people • It is normally between 1% and 3% in this country

  5. Draw a diagram to show what inflation is

  6. Hyperinflation • Hyperinflation is an exaggerated form of inflation • In Germany this meant that prices changed by 3000% over a very short period of time • People carried around wheelbarrows full of money just to buy basic supplies • People’s savings became worthless

  7. Draw a diagram to show hyperinflation

  8. Work out the change in prices for these basic products • Bread (50p) • Milk (75p) • Butter (90p) • Potatoes (£1) • Coke (55p) • Beer (£2.30)

  9. Helping the Nazis • People in Germany were desperate for this situation to change • The mainstream politicians had failed, and shown that they were unable to make a difference to Germany’s problems • People began to listen to extremist ideas, because they promised change • The Nazis were able to offer economic reform that people wanted

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