HyperinflationAlright, so we know what hyperinflation, and supply and demand are.
Germany printed an enormous amount of money to pay off the debt that they had. However, this only made their situation worse. This is because the value of their dollar (remember the Walmart story) became lessened. Therefore, people were even more broke than they were, which led to a gigantic poverty issue. People were losing jobs, and since they had to give back a ton of land (which was used largely for manufacturing), they weren't able to make a lot of money. Middle School Scenario/Explanation: They simply could not earn enough money to pay back the debt they owed. So they printed money instead (which had absolutely no value). This made their economy worthless. By the end of it, people were starving and desperate for a change. ----> |
Their economy simply failed. Germany brought in a new leader, and they had to completely change their currency (crazy, right?). The new leader collaborated with the United States, and worked with the countries they harmed during World War I. In fact, they even had an opportunity to sell their goods to more countries which means they were able to make more money. It seemed as if their country was going to overcome their financial shortcoming.
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