In December 1941, the character of World War II was irrevocably changed by the German defeat at the Battle of Moscow. Up to this point, Germany had been able to win each of its individual wars in a single campaign, using the Heer's military experience to defeat Germany's enemies one by one and a fixed supply of manpower and military materiel used. The Soviet Union managed to weather the German storm, however, and although its pre-war army had been destroyed, it raised new armies and divisions in time to halt the German advance outside the capital, necessitating a second campaign. 🇧🇷 This fact changed the nature of warfare from a single military operation to a series of campaigns using national economic output to outfit and sustain multiple operations over a period of years. From that moment on, the degree of mobilization of a country's economy was an important factor in winning or losing the war.
Which begs the question: what was the relative size of the German and Soviet economies? Eventually, Germany was able to draw on the resources of an occupied Europe, while the USSR lost vast territories, some 60-80 million people and 40% of its economic base. In contrast, every third "German" soldier who fought on the Eastern Front was not a German citizen.
In 1938 the two economies were quite similar in size, although Germany had a population of 67 million [Maddison] and the USSR 198 million. Since then, Germany has occupied Czechoslovakia, Poland, France, Belgium, the Netherlands, Norway, Denmark, much of the Balkans and Greece, and has maintained trade relations with Switzerland, Sweden, Finland, Italy, Romania, Bulgaria and Turkey. In addition, since June, Germany has occupied the Baltic states, Belarus, most of Ukraine and much of western Russia. To complicate calculations, the empire had grown with the annexations of Austria, Alsace-Lorraine, Luxembourg, Sudetenland, Danzig-West Prussia, and Wartegau.
The most up-to-date estimates I can find are given in Table 1, which shows Germany's gross national product (GNP) and the contribution of the various occupied territories. What this system lacks is international trade and some of the annexed territories have relatively small contributions.
The scheme can be presented as in Figure 1. As seen here, the occupation of most of continental Europe contributed between 10% and 15% to the German economy in each year of the war. It is estimated that the amount gained from direct looting during the course of the war was 1 billion RM, with the largest gain coming from the forced labor of the population in the occupied countries.
ancestors
To put these estimates into context, it would be best to understand the history behind them.
In March 1944, the Reich Ministry of Finance announced at a press conference that during the war Germany had achieved a trade balance with both its trading partners and the occupied countries [Hunscha 1]. The doctor. Kurt Hunscha, head of the economic department of the Dresdner Bank and member of the Reichsbank [Hunscha 2], further processed these figures towards the end of the war and they appear in the trial files against Albert Speer in Nuremberg. , where the Defense Council tried to downplay the German occupation policy [Nuremberg].
These figures achieved quite a long acceptance when they appeared in 1999 in the English edition of the Military History Research Office (MGFA) in the Official German War History Volume V/II Table I.II.5 p.223 [MGFA 2]. "Germany and the Second World War" Volume 5/II as seen here:
and again in "The Economic Consequences of the War West Germany's Growth Miracle after 1945" by Tamás Vonyó, Cambridge University Press 2018 as Table 4.1 p.154
This would yield the net trade numbers shown below.
However, this seems impressive when compared to the total German GDP which was RM 128,000,000,000 in 1942, even the contribution of Western Europe is 1% and becomes insignificant. Modern commentators have pointed out that there are three main flaws in these figures: they use fixed exchange rates set at rates favorable to the occupiers, that Wehrmacht trade was tax-exempt and therefore unrecorded, and that much of the occupation's traffic never passed through Germany , France, ran companies invaded. Concrete for the Atlantic Wall, or Polish companies supplying munitions to the Eastern Front, or Russian farmers feeding the Eastern Army, and again it's not covered by those numbers.
Modern estimates of the occupied countries' contribution to the German war effort
A decade after Hunscha's research came to light, researchers in individual country studies, such as Alexander Dallin for Russia, have shown that the occupation yielded much larger amounts than shown in the tables above. Alan Milward's "Blitzkrieg Theory" and later "Inefficiency Theory" attempted to explain the German economy and in particular its characteristic lack of early mobilization of the German population. This indicated wholesale exploitation of the occupied countries at the expense of internal mobilization, but it was difficult to formulate solid estimates.
In 1986, Christophe Buchheim increased the estimate of the occupied countries' contribution to 80 million Reichsmarks [Buchheim] over the total Hunscha imports of 36 billion Reichsmarks; However, in 1988 Harrison gave the Occupied Territories' contribution as 1/6 of the total German war effort [Harrison 2], based on Maddison's earlier work. This estimate generally holds to this day with additional work, mainly to add detail to the image.
This estimate received additional weight in 2006 with the publication of Adam Tooze's book on German economics, The Wages of Destruction, which proposed a replacement theory for the earlier theories of blitzkrieg and inefficiency. Tooze posited that the need to export and earn foreign exchange to buy strategic imports explained the German economy's lack of early mobilization. Similarly, rearmament proceeded sequentially, with initial spending on the Heer to fight the Continental Wars, followed by spending on the Luftwaffe and Kriegsmarine to fight the United States. This book didn't directly address the contribution of the Occupied Territories, but it fit the bigger picture [Tooze].
Six years later, in 2012, Klemann & Kudryashov's book Occupied Economies: An Economic History of Nazi-Occupied Europe, 1939-1945 provided more detail on individual countries' contributions to the German war effort [Klemann] and a detailed account of him Post that is very close to the image I gave at the beginning of this article. While other work by Scherner and others complemented and expanded this view, he finally concluded in 2016 with Scherner & White's Paying for Hitler's War, which, while not making a blanket conclusion, added much information. about individual countries.
From this perspective, the German economy earned around RM 1 billion in taxes and compulsory indemnity loans [Scherner Paying p43] and the occupied territories contributed an additional 20% to their national GDP annually. The most recent estimates appear to be Kilian's 2017 work, which I used in my spreadsheet at the beginning of this article.
Contribution Scale of the Occupied Territories
To understand Germany's effectiveness in harnessing the economies of the occupied territories, it is necessary to understand their relative size before the war and then adjust that potential for various external factors beyond Germany's control.
At the outbreak of war in 1939 Germany had a population of 69 million with an economic output of 7,557 international GDP per capita [Madisson][Harrison 1]. In 1940 Germany conquers Western Europe, adding France, Belgium, Holland, Denmark and Norway, which together have a population of 66 million with a per capita GDP of around 6,000 international dollars. Adding in the earlier conquests of Czechoslovakia and Poland in 1939, the population is 112 million, or a little less than double the German population; However, these countries have a much lower per capita GDP of less than 3,000, making the potential GDP of the German occupied area roughly equal to that of Germany. This is due to the idea of classical economic theory that countries have a basic economic activity aimed at feeding, clothing and housing their citizens and only the fraction above that is freely available for activities like war. Rich countries have a larger proportion of their economies above this baseline and can therefore generate a greater level of potential military activity.
The potential of the occupied territories is not being realized due to several factors:
First, the moment these countries become occupied states, they immediately lose access to their colonies, international trade, and international finance. For example, local trade between France and Spain continues, but British denial of sea lanes prevents access to the rest of the world. This does not recover over time and the fracture was significant, as the French example shows.
Second, due to war damage, population movements, and their own mobilization efforts, these economies suffer from an element of wartime destruction that will recover over time. An example of this is the disruption of coal mining in France, which paralyzed transport and affected the entire French economy.
Third, there is another round of lost potential due to the active and passive resistance of the occupied state, causing extraction problems for the occupier. This situation will tend to worsen over time.
Finally, there is the efficiency of squatter management in managing the squatted economy and mitigating the above factors to some extent, and this obviously varies from country to country. An element of German inefficiency comes from its own organization and structures, but another element comes from the fact that it is at war and cannot devote manpower and resources to running the occupied state and can rely on local personnel.
So what could Germany expect to get out of any economy when the national economy normally allocates 60% of its GDP to military efforts?
Given that these factors would have reduced the potential economic activity of the occupied territories well below pre-war levels, and that from this perspective the rates of depletion would have been well below the German maximum of 60%, given that 20% of Germany's originating from occupied countries seems quite successful, especially since almost all of these countries had a lower pre-war GDP per capita than Germany.
Further evidence supporting this is discussed in Klemann & Kudryashov on attempts in 1941 and 1942 to get French and Dutch companies to supply the Wehrmacht. These attempts failed as local inventories of materials and spare parts ran out as the broader economies could not provide transportation or materials and subcontractors could not supply the semi-finished components. This made it easier for Germany to move the machinery and labor to Germany rather than trying to restart the occupied economies.
German-Soviet comparison
With an idea of where our numbers are coming from, it is possible to convert Reichsmarks to international dollars (for simplicity I used the exchange rate of RM2.5 = $1 in 1940 and then US CPI for 1985 prices, seehttps://liberalarts.oregonstate.edu/spp/polisci/research/inflation-conversion-factors-convert-dollars-1774-estimated-2024-dollars-recent-year), which can then be compared in Table 5.17 with the Soviet figures from Harrison's "Accounting for War" [Harrison 3].
This chart is essentially a copy of the chart at the top of this article, which shows Germany's gross national product in gray with the occupied territories' contribution shown as cumulative lines stacked on top. USSR figures are shown on the red dotted line and for comparison and verification I have added Harrison's original 1996 estimate of German GNP as the blue dotted line.
This shows that the economies of Germany and the USSR were of comparable size in 1939 and 1940; However, in 1941/42 the USSR's economy shrank by a third while Germany's economy grew as production from Western Europe accelerated, and by 1942 Germany had double the GDP. compared to the USSR. In the remaining years of the war, the USSR slowly closes this gap, despite the growth of the German economy, as the rate of mining in occupied Europe increases after 1942.
Conclusion
As shown, the latest figures on the German economy and the contribution of occupied Europe show a slightly larger German economy than 1996 estimates, and the occupied component has remained essentially the same since 2012. However, ongoing research has provided a more detailed estimate than previously, with a higher level of detail for individual countries.
The author thanks Stiltzkin and TheMarcksPlan of the Axis History Forum for providing the sources and information used to write this article. See for detailshttps://forum.axishistory.com/viewtopic.php?f=66&t=245879
Fuentes
Christopher Buchheim. The countries occupied in the service of the German war economy during World War II. A report from the Research Center for Defense Economics. Quarterly Journals of Contemporary History 5 - 1https://www.ifz-uenchen.de/heftarchiv/1986_1_5_buchheim.pdf
Goldsmith, R. W., The Power of Victory: Ammunition Production in World War II, Military Affairs, 10 (1946), S. 69-80https://www.jstor.org/stable/1983105?seq=1
Harrison, Mark. The Economy of World War II: Six Great Powers in International Comparison. Cambridge University Press 1997
Harrison, Mark. Resource Mobilization for World War II: US, UK, USSR and Germany, 1938-1945. Economic History Review, 41:2 (1988), pp. 171-192.
See AlsoCoronavirus boosts wartime economic thinkingEconomic Recovery: Lessons from the Post-World War II EraThe “war” against COVID-19: what real wars teach us (and don't) about the economic impact of the pandemic.Assessment of the wartime economy of Russia(Video) How Wars are Won & Lost - A Simple ModelHarrison, Mark. War Accounts: Soviet Production, Employment, and Defense Burdens, 1940-1945. Cambridge University Press 1966.
Hunscha, Dr. Kurt. Federal Archives. R 2501/6434 1941. Note to Dr. Kurt Hunscha, Head of the Economics Department at Dresdner Bank, gave a lecture on current issues in international monetary policy Archiv 21a, 75 Berlin Lechtfeld
Hunscha, Dr. Kurt. Federal Archives. R3/1626a Vol. 2 (1936-1944) July 1948 Volume number 2 contains, among other things: “German economic and financial relations with the occupied countries of continental Europe in the period from 1940 to 1944 with comparisons to German foreign trade before the war from 1936 to 1939 .- Copy of Dr. Kurt Hunscha to submit Albert Speer to the Nuremberg trials.
Killian, Jurgen. War at the expense of others: the Reich Treasury and the economic mobilization of Europe for Hitler's war. p.386 Table 60. Walter de Gruyter. Berlin 2017.
Klemann, Hein and Kudryashov, Sergei. Occupied Economies: An Economic History of Nazi-Occupied Europe, 1939-1945. BergLondon 2012
Maddison, Angus: World Population, GDP and GDP Per Capita Statistics, AD 1-2008http://www.ggdc.net/maddison/oriindex.htm
MGFA. The German Reich and the Second World War. Volume 5/1 Organization and mobilization of the German sphere of influence. German publisher Stuggart 1988
MGFA. The German Reich and the Second World War. Volume 5/2: 1942-1944/45. Organization and mobilization of the German sphere of influence. War administration, economy and human resources. German publisher Stuggart 1999.
Milward, Alan. War, Economy and Society. London: Allen Lane, 1977
Nuremberg Trial Records - Red Series: Volume VIII Index Documents Economic Series p. 1029 to p. 1051.https://www.loc.gov/rr/frd/Military_Law/pdf/NT_Nazi_Vol-VIII.pdf
Records of the Nuremberg Trial - Red Series: Volume VII, Page 269, Document EC-86 Country-by-Country Accounting for Occupancy Costshttps://www.loc.gov/rr/frd/Military_Law/pdf/NT_Nazi_Vol-VII.pdf
Ritschl, Albrecht and Spoerer, Mark. The gross national product in Germany according to official statistics on national income and national product 1901-1995. Yearbook of Economic History / Yearbook of Economic History. 38-2 p. 27 1997
(Video) The Complex Logistics of Keeping Tanks Fueled (U.S. Army)Scherner, Jonas & White, Eugene N. Paying for Hitler's War: The Consequences of Nazi Hegemony for Europe. Cambridge University Press 2016.
Scherner, Jonas. The increase in German imports during World War II. New results on the structure of exploitation in occupied Europe based on a reassessment of the German trade balance. Jornal Histórico 294-1 pp. 79-113. 2002
Tooz, Adam. The Wage of Destruction. Cambridge University Press 2006 see additional datahttps://web.archive.org/web/20060926104940/http://www.hist.cam.ac.uk/academic_staff/further_details/wages-of-destruction.html
FAQs
What was the impact of ww1 on the German economy? ›
In the years following World War I, there was spiraling hyperinflation of the German currency (Reichsmark) by 1923. The causes included the burdensome reparations imposed after World War I, coupled with a general inflationary period in Europe in the 1920s (another direct result of a materially catastrophic war).
What impact did ww1 have on the economy of Europe? ›Europe. Gross domestic product (GDP) increased for three Allies (Britain, Italy, and the U.S.), but decreased in France and Russia, in the neutral Netherlands, and in the three main Central Powers. The shrinkage in GDP in Austria, Russia, France, and the Ottoman Empire reached 30 to 40%.
What was the contribution of Schacht in the economic recovery of Germany? ›Schacht proposed more production and more employment. He suggested a state-funded work-creation programme. The famous German superhighways and Volkswagen referred to as the people's car is a product of this project. The living standards of a section of Germans improved.
How did Germany contribute to the start of the war? ›Germany's violation of Belgian neutrality and British fears of German domination in Europe brought Britain and its empire into the war on 4 August. These actions reflect the fears, anxieties and ambitions of the European powers.
What were the major factors responsible for economic crisis in Germany during 1920? ›With too much printed money in circulation, the value of the German Mark fell. As a result, prices of goods soared. The image of Germans carrying cartloads of currency notes to buy a loaf of bread was widely publicised. This crisis came to be known as hyperinflation.
What was the economic impact of ww2 on Germany? ›Germany After the War
The numbers tell the story of a nation in disarray. Industrial output was down by a third. The country's housing stock was reduced by 20%. Food production was half the level it was before the start of the war.
The labor force during the war increased by about 10 percent, from forty million to forty-four million workers. Unemployment declined from 7.9 percent to only 1.4 percent, a tremendous decrease! To fund this drastic increase in military spending, the United States both raised taxes and sold war bonds.
What were the economic effects of WW2 on Europe? ›Following the Second World War (WW2), the European economy was ravaged and devastated. Critical infrastructure was decimated, and many people were left homeless as their houses became damaged beyond repair.
What was the impact of World War 1 on Europe and Germany? ›The First World War destroyed empires, created numerous new nation-states, encouraged independence movements in Europe's colonies, forced the United States to become a world power and led directly to Soviet communism and the rise of Hitler.
What was responsible for Germany's economic recovery after ww1? ›Soon, West Germany, bolstered by Marshall Plan aid and relieved of most of its reparations burden, was Europe's fastest-growing economy. This “economic miracle” helped stabilize the economy, and the new plan used the potential of reparations payments to encourage countries to trade with West Germany.
What was responsible for the German economic miracle? ›
What caused the so-called miracle? The two main factors were currency reform and the elimination of price controls, both of which happened over a period of weeks in 1948. A further factor was the reduction of marginal tax rates later in 1948 and in 1949.
Who was responsible for economic recovery of Germany? ›Economist Hjalmar Schacht was assigned the responsibility of economic recovery by Hitler. He aimed at full production and full employment through a state-funded work-creation programme. This project produced the famous German superhighways and the people's car, the Volkswagen. Q.
How did Germany get involved in ww1 quizlet? ›Germany violated Belgium's neutrality. Great Britain was also allied with Russia and France and wanted to maintain world power, so they became involved in the war.
How did Germany start ww2 quizlet? ›Germany started World War II when it invaded Poland in 1939.
What was the impact of the First World War on the political system of Germany? ›Germany emerged from the First World War defeated and in political and economic turmoil. The economy was ruined and the Kaiser had fled the country. Various political parties, democratic and extremist fought for power.
What was the impact of the great economic crisis on the economy of Germany explain? ›The most obvious consequence of this collapse was a huge rise in unemployment. Over the winter of 1929-30 the number of unemployed rose from 1.4 million to over 2 million. By the time Hitler became Chancellor in January 1933 one in three Germans were unemployed, with the figure hitting 6.1 million.
What was the economic crisis in Germany in 1923 how did it affect Germany? ›In 1923, at the most fevered moment of the German hyperinflation, the exchange rate between the dollar and the Mark was one trillion Marks to one dollar, and a wheelbarrow full of money would not even buy a newspaper. Most Germans were taken by surprise by the financial tornado.
When did Germany become the largest economy in Europe? ›After the extensive development of the railway network during the 1840s, rapid economic growth and modernisation sparked the process of industrialization. The largest economy in Europe by 1900, Germany had established a primary position in several key sectors, like the chemical industry and steel production.
What was the German economic system during ww2? ›Overall, according to historian Richard Overy, the Nazi war economy was a mixed economy that combined free markets with central planning; Overy describes it as being somewhere in between the command economy of the Soviet Union and the capitalist system of the United States.
Why is Germany so economically successful? ›In the business world, it is well known that Germany has a strong economy and worldwide trading reputation, but why is this? The German economy's competitiveness and worldwide networking can be attributed to its elevated level of innovation and strong export orientation.
What was the economic recovery of Germany after ww2? ›
German economic output recovered rapidly in 1946 as plants and mines reopened. By the end of 1946, industrial output in the U.S. zone had risen to 2.4 times the 1945 level (although it was still only 45% of its 1937 level). In the more industrial British zone, output was up 50%.
What were the economic benefits of ww1? ›The economy was mired in recession in 1914 and war quickly opened up new markets for American manufacturers. In the end, World War I set off a 44-month period of growth for the United States and solidified its power in the world economy.
How did ww1 boost the economy? ›Manufacturing wages increased dramatically, doubling from an average $11 a week in 1914 up to $22 a week in 1919. This increased consumer buying power helped stimulate the national economy in the later stages of the war.
How did the economy change during ww1? ›When the war began, the U.S. economy was in recession. But a 44-month economic boom ensued from 1914 to 1918, first as Europeans began purchasing U.S. goods for the war and later as the United States itself joined the battle.
What helped Europe recover economically after ww2? ›It became known as the Marshall Plan, named for Secretary of State George Marshall, who in 1947 proposed that the United States provide economic assistance to restore the economic infrastructure of postwar Europe.
What are 3 economic effects of ww2? ›The war brought full employment and a fairer distribution of income. Blacks and women entered the workforce for the first time. Wages increased; so did savings. The war brought the consolidation of union strength and far-reaching changes in agricultural life.
What was the major effect of WWII on the economy? ›American factories were retooled to produce goods to support the war effort and almost overnight the unemployment rate dropped to around 10%. Women went to work to fill jobs that were traditionally held by men.
What were some of the major effects of WWI on Europe? ›A: It changed the world. It led to the Russian Revolution, the collapse of the German Empire and the collapse of the Hapsburg Monarchy, and it led to the restructuring of the political order in Europe and in other parts of the world, particularly in the Middle East.
What were the effects of war on European society? ›The impact of the war on the European Society was devastating. It affected the economic, social and political fibre of Europe. The soldiers were placed above the civilians. Politicians and publicists emphasized on the need for men to be aggressive, strong and masculine.
What was the impact of the First World War on Germany mention three effects? ›German economy took a hit. Germany lost parts of its territory. It aided in the rise of Adolf Hitler. It led to the formation of the League of Nations.
How did the reunification of Germany lead to economic problems? ›
After German unification in October 1990, the economic performance of western Germany was initially strong. However, it deteriorated by 1992 and remained dismal for the remainder of the 1990s. During this time, the unemployment rate nearly doubled, as GDP growth averaged a meager 1.5 percent per year.
What was the economy of Germany before ww1? ›A booming economy
Coal production, iron ore mining and foreign investment all spiked during the mid-19th century. The government adopted policies to encourage industrial growth, while unification removed the border tariffs and trade duties which existed before 1871.
The Wirtschaftswunder (German: [ˈvɪʁtʃaftsˌvʊndɐ] ( listen), "economic miracle"), also known as the Miracle on the Rhine, was the rapid reconstruction and development of the economies of West Germany and Austria after World War II (adopting an ordoliberalism-based social market economy).
What is German economic model? ›Under the German model, unions are organized at the industry level and co-exist with works councils at both the plant and company levels. These unions negotiate wage determination with employers' associations. The strength of this setup is the cooperation among unions and management councils.
Who saved the economy during the Great Depression? ›Following his inauguration as President of the United States on March 4, 1933, FDR put his New Deal into action: an active, diverse, and innovative program of economic recovery.
Who took responsibility for Germany after ww2? ›After Germany's defeat in the Second World War, the four main allies in Europe - the United States, Great Britain, the Soviet Union, and France - took part in a joint occupation of the German state.
What did Germany do that led to US involvement in ww1? ›Germany's resumption of submarine attacks on passenger and merchant ships in 1917 became the primary motivation behind Wilson's decision to lead the United States into World War I.
Why was Germany primarily responsible for ww1? ›Historians who believe Germany was primarily responsible for the war base their conclusion on the aggressive attitude of Germany's leaders, their desire to extend Germany's influence throughout Europe, and on the militaristic nature of the German people.
What did Germany rely on after ww1? ›At first Germany tried to recover from the war by way of social spending. Germany began creating transportation projects, modernization of power plants and gas works. These were all used to battle the increasing unemployment rate. Social spending was rising at an unbelievable rate.
What strategy did Germany use at the start of ww2? ›"Blitzkrieg," a German word meaning “Lightning War,” was Germany's strategy to avoid a long war in the first phase of World War II in Europe. Germany's strategy was to defeat its opponents in a series of short campaigns.
What did the Germans do to start the war? ›
Upon achieving power, Hitler smashed the nation's democratic institutions and transformed Germany into a war state intent on conquering Europe for the benefit of the so-called Aryan race. His invasion of Poland on September 1, 1939, triggered the European phase of World War II.
What made Germany's invasions of Europe difficult to stop during World War II? ›Expert-Verified Answer. Germany's air attacks were the biggest obstacles in stopping it's invasions in Europe during world war II. The fast moving ground troops commanded by the military genius of Adolf Hitler made it very difficult for neighbouring countries of Europe.
What was the economic impact of World War 1 on Germany? ›By 1918, Germany was no longer a strong confident country, but one on the brink of ruin. The war had destroyed Germany's economy. The country spent around one third of its income on war pensions to all those widows and families who had lost someone during the conflict.
What were the economic impact of First World War on Germany? ›In the years following World War I, there was spiraling hyperinflation of the German currency (Reichsmark) by 1923. The causes included the burdensome reparations imposed after World War I, coupled with a general inflationary period in Europe in the 1920s (another direct result of a materially catastrophic war).
What was the impact of the war on the European society and politics? ›Solution : The impact of the war on the European Society was devastating. It affected the economic, social and political fabric of Europe. The soldiers were placed above the civilians. Politicians and publicists emphasised on the need for men to be aggressive, strong and masculine.
What was the economic impact after ww1? ›Stock prices collapsed first, by the end of 1919. The downturn in wholesale prices came 6 months later. By the autumn of 1920 a severe industrial depression had developed. Factory employment dropped 30 percent from March 1920 to July 1921.
How did the German economy change after ww1? ›The economic depression during the war was followed by a brief upswing which lasted until the Ruhr occupation and hyperinflation. Even in the “Golden Twenties” after the currency reform, there were still signs of crisis: the number of company bankruptcies reached a peak after the collapse of the inflationary consensus.
What was the impact of great economic crisis on Germany? ›The most obvious consequence of this collapse was a huge rise in unemployment. Over the winter of 1929-30 the number of unemployed rose from 1.4 million to over 2 million. By the time Hitler became Chancellor in January 1933 one in three Germans were unemployed, with the figure hitting 6.1 million.
How did Germany fix their economy after ww2? ›And less than ten years after the war people already were talking about the German economic miracle. What caused the so-called miracle? The two main factors were currency reform and the elimination of price controls, both of which happened over a period of weeks in 1948.
How did Germany rebuild its economy after ww2? ›The country subsequently began a slow but continuous improvement of its standard of living, with the export of local products, a reduction in unemployment, increased food production, and a reduced black market.
How did Germany become an economic powerhouse? ›
The majority of Germany's economic prowess is because of the small and medium corporations over there. These corporations are known to be most competitive all across Europe. They are responsible for the bulk of exports which make Germany a world leader.
What was the economic crisis in Germany after ww1? ›Hyperinflation soon rocked Germany. By November 1923, 42 billion marks were worth the equivalent of one American cent. During a period of hyperinflation in 1920s Germany, 100,000 marks was the equivalent one U.S. dollar. Finally, the world mobilized in an attempt to ensure reparations would be paid.
How was the German economy hit by the Great? ›1)Germany's trade and commerce depended on a large sum of borrowing. 2)The wall street exchange crashed and this led to withdrawal of USA support to germany. Further industrial production also reduced to 40% in germany.