The punitive terms of the treaty transformed Germany from a large, powerful, and feared country into one that was isolated and marginalized from the rest of the world and could only rely on itself. As a result of the Peace Treaty, the geography of Europe drastically changed. Germany lost a sizable amount of land (about 13%) to other countries in Europe and its population radically decreased by 6 million. In losing all of these people, Germany had lost millions of possible workers, volunteers, and taxpayers. In being stripped of its overseas colonies, Germany lost a number of regions that were rich in minerals, so the coal and steel industry was deeply affected and the country lost a crucial source of income, further weakening their economy and triggering a depression. Since Germany was held responsible for the war, strict financial penalties were enforced, which required Germany to pay compensation to the Allies, while simultaneously reconstructing their war-ravaged economy. Their economy was largely based on the production and exportation of weapons and ships, and the treaty banned this, so it was virtually impossible for Germany to continue trading with other nations. With the reduction of Germany’s armed forces, millions of soldiers became unemployed, causing many families to struggle on the brink of poverty. Companies that produced goods for the military lost their great demand, reducing the amount of employment even more.
Since the Allies’ attempt to diminish the German economy induced massive unemployment, dissent among the population increased and the Germans harbored a great deal of animosity. Germans felt humiliated, victimized, and betrayed in being forced to assume full responsibility for WWI. Instead of establishing peace, the people felt as if the Allies were blaming and punishing them for their government's mistakes. Ultimately, the Treaty failed to heal the wounds of WWI, and instead paved the way for WW2. Consequently, many believe that the Treaty’s failure allowed Hitler to exploit the Germans’ anger and resentment to start his regime. As the social and economic chaos worsened with the grueling stipulations imposed by the Treaty of Versailles, Germans demanded a "more authoritarian direction." Germans felt abandoned by their government and sought comfort in joining Communists and Socialist Parties, one of which was led by Hitler, who eventually rose to power by promising to restore Germany to its former glory.