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what were the economic consequences of the war - Coggle Diagram
what were the economic consequences of the war
war debt
german debt increased to 144,000 million marks up from 5000 million before the war
germany had issued treasury bonds during the war in order to finance it without increased taxation.
the government didn't tighten government spending but instead printed more money
treaty of versailles
germany had large amounts of capital seized
100,000 pieces of agricultural equipment
10,000 railway locomotives seized
90 percent of the countries merchant fleet was taken
6.6 billion in reparation payments
hyperinflation
while the ruhr valley acted as a catalyst for hyperinflation inflation had been creeping upwards
after the invasion chancellor Cuno ordered passive resistance where the government told workers in the ruhr to stop working and the government would pay there wages
the government did this by printing more money
the government had started printing more money to pay of treasury bonds as well as war reperations.
supply had also shrunk after the war which exasperated inflation
by 1923 the currency was totally worthless,the mark wasn't even worth the paper it was printed on and there was 300 paper mills and 2000 printers working day and night in order to print enough money in higher and higher denominations
farmers were refusing to sell food for the worthless mark
direct consequences of the war
a huge number of soldiers where killed during the war
2 million men had died
4 million men where injured
this caused huge labour shortages as most of those who died where young men in the prime of thee working lives
the new workers heading into the factories where also inexperienced as they had been fighting.
the german economy had been shifted towards war production and it would be a long and painful transition to turn them back into civilian industries
output had shrunk significantly
productivity was down by 4 percent every single year
overall output was down 40 percent