WEIMAR REPUBLIC WEIMAR REPUBLIC 1919-19331919-1933

• Born out of the German Revolution of November 1918…. • Liberal Democracy that lapses in the 1930’s• Faces numerous challenges (reparations, Ruhr

occupation, Hyperinflation, political extremists on the LEFT and RIGHT, global depression, etc.)

REPARATIONS

• Make first payments in 1921

• Unable to do so in 1922, France decides to come in and occupy the Ruhr, Ruhr, Germany’s Industrial Germany’s Industrial HeartlandHeartland• Leads to run-away

inflation, HYPERINFLATION

and CATASTROPHY

HYPERINFLATION

Response to crisis of 1923..

• Dawes Plan-Dawes Plan- American Banks loan money to Germany so they can pay reparations. Circular-plan works…but only short-term

• Creation of new Currency, Rentenmark provides international confidence

Weimar RepublicThe Golden Years 1924-’29The Golden Years 1924-’29

• Goldene Zwanziger• Growing economy

coincided with decrease in civil unrest, but…

• U.S stock-market crash of 1929 changes all that!