In November 1918, Germany surrendered in WWI.  

Treaty of Versailles 

• Took away German colonies

•  Demilitarized the country

• Forced Germany to pay heavy reparations

•   With the ending of WWI and Germany’s defeat, the imperial government came to an end and German leaders created a democratic government known as the Weimar Republic.  In this new democratic government, there was a chancellor or prime minister.  Under this new democratic government, women were allowed to vote, there was a bill of rights, and political parties were allowed to form.

Despite the hopes of new democracy, Germany suffered from a range of early political and economic problems.  

Politically, the Weimar Republic had many small political parties so it was nearly impossible for agreement.  Some thought the Weimar Republic was too weak and  demanded changes.  

Many Germans were still angered by the terms of the Treaty of Versailles.  Having to pay such large reparations negatively affected the German economy.  Not only did the Treaty of Versailles impact the economy, it also impacted the German sense of pride they had for their country (nationalism). 

Germans of all classes began to believe the Weimar Republic was weak and not doing enough to return Germany to its rightful place as a world power.

Angered, bitter, and humiliated, Germans began to look for scapegoats to blame for Germany’s political and economic problems.  Many Germans looked to German Jews as the reason for Germany’s problems.  These political and economic problems caused many people to lose faith in the Weimar Republic and they began to look to extremist leaders to solve the problems that the Weimar government seemed unable to solve.

To help the economy recover, the US loaned Germany money and a new plan was developed by Western nations to reduce German reparation payments.  Between 1924 and 1928, Germany was able to experience a period of prosperity.  However, it all fell apart when the stock market crashed and the world was plunged into the Great Depression.