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← Chapter 6: Turning Points (1917-1918)



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Chapter 7: The End of War and Aftermath (1918-1919)

  1. Defeat of Germany and the Central Powers in World War I

  2. The Versailles Peace Treaty

  3. The Other Treaties in the Versailles Settlement

 Chapter 8: Post-War Europe and the Rise of Hitler (1918-1933)

→ 


Defeat of Germany and the Central Powers in World War I: An In-Depth Exploration

World War I: The Defeat of Germany and the Central Powers FAQ

  • What strategic errors contributed to Germany's defeat in World War I?

Germany made several key strategic mistakes: 1) The Schlieffen Plan, intended to quickly defeat France, failed due to Belgian resistance and British intervention, forcing Germany into a two-front war. 2) Attrition warfare at Verdun depleted German resources without achieving decisive victory. 3) Unrestricted submarine warfare drew the United States into the war against Germany. 4) The Ludendorff Offensive, a last-ditch effort, initially made gains but ultimately failed due to logistical issues and Allied counterattacks.

  • How did the weaknesses of Germany's allies contribute to their collective defeat?

Germany's allies, Austria-Hungary, the Ottoman Empire, and Bulgaria, were also struggling: 1) Austria-Hungary faced internal collapse due to ethnic tensions and mutinies. 2) Bulgaria was defeated by Serbian and French troops, leading to its surrender. 3) The Ottoman Empire suffered defeats in the Middle East, culminating in its surrender. These collapses left Germany isolated and unable to sustain the war effort.

  • What economic and military advantages did the Allied Powers have by 1918?

The Allies enjoyed several key advantages: 1) The British naval blockade severely weakened the German economy, causing food shortages and industrial decline. 2) Allied economic mobilization outpaced Germany's, allowing for superior resource allocation and war production. 3) Technological and tactical coordination, including combined arms operations with tanks, artillery, aircraft, and infantry, overwhelmed German defenses.

  • How did the United States' entry into the war impact the outcome?

The US entry into the war was decisive: 1) The American Expeditionary Force (AEF) provided fresh troops and played crucial roles in key battles, such as the Second Battle of the Marne and the Meuse-Argonne Offensive. 2) The US Navy helped protect Allied shipping from German U-boats, ensuring the flow of supplies and troops. 3) American industrial production significantly boosted Allied war material supplies, outproducing Germany.

  • How do different historical schools of thought interpret Germany's defeat?

Different historical perspectives emphasize different factors: 1) Realist historians focus on military overstretch, strategic failures, and the collapse of Germany's allies. 2) Liberal historians highlight Allied economic superiority, strategic coordination, and the decisive role of the United States. 3) Marxist historians emphasize the role of economic factors, arguing that Allied economic power and capitalist competition led to Germany's defeat.

  • What was the significance of the British naval blockade?

The British naval blockade had a crippling effect on the German economy: 1) It restricted imports, leading to widespread food shortages and starvation in Germany. 2) German industrial output suffered due to a lack of raw materials. 3) The blockade contributed to social unrest and weakened German morale, undermining the war effort.

  • How did the Allies' combined arms operations contribute to their victory?

Allied combined arms operations proved highly effective: 1) The coordinated use of tanks, artillery, aircraft, and infantry allowed for greater offensive power and flexibility. 2) This approach overcame the stalemate of trench warfare and allowed the Allies to break through German defenses. 3) German forces struggled to adapt to this modern form of warfare, contributing to their eventual defeat.

  • What was the lasting impact of the defeat of Germany and the Central Powers?

The defeat of Germany and the Central Powers had profound consequences: 1) It led to the redrawing of the map of Europe, with the creation of new nations and the collapse of empires. 2) The Treaty of Versailles imposed harsh penalties on Germany, contributing to resentment and instability in the following decades. 3) The war's devastation and social upheaval laid the groundwork for the rise of extremist ideologies and the outbreak of World War II.


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Timeline of Events Leading to the Defeat of Germany and the Central Powers in WWI:

1914

  • August: Germany launches the Schlieffen Plan, invading Belgium in an attempt to quickly defeat France. Britain enters the war in response to the violation of Belgium's neutrality. The plan fails, leading to a stalemate on the Western Front.

1916

  • February - December: The Battle of Verdun, a brutal battle of attrition, takes place with heavy casualties on both sides but no decisive outcome.

1917

  • February: Germany resumes unrestricted submarine warfare, targeting Allied and neutral ships, including American vessels.

  • April: The United States declares war on Germany, citing unrestricted submarine warfare as a primary reason.

1918

  • March: Germany launches the Ludendorff Offensive (Operation Michael), initially gaining ground but ultimately failing due to logistical problems, exhausted troops, and the arrival of American forces.

  • September: Bulgaria surrenders after defeats by Serbian and French troops.

  • October: The Ottoman Empire surrenders after defeats in the Middle East.

  • November 11: Germany signs the Armistice, ending World War I.


Cast of Characters:

Central Powers:

  • Germany: Erich Ludendorff: German general who orchestrated the Ludendorff Offensive. Acknowledged the German army's collapse in August 1918.

  • Austria-Hungary: Faced internal collapse as ethnic groups revolted, contributing to the Central Powers' weakening.

  • Bulgaria: Surrendered in September 1918 after military defeats.

  • Ottoman Empire: Surrendered in October 1918 following defeats in the Middle East, including the Arab Revolt.


Allied Powers:

  • Great Britain: Implemented a naval blockade that significantly weakened Germany's economy.

  • Effectively mobilized its economy for war, maintaining a steady flow of supplies.

  • France: Bore the brunt of fighting on the Western Front, including the Battle of Verdun.

  • Successfully mobilized its economy and coordinated military efforts with its allies.

  • United States: Woodrow Wilson: US President who led the country into war in 1917.

  • John J. Pershing: General who commanded the American Expeditionary Force (AEF).

  • Provided crucial economic and military support to the Allies, tipping the balance of the war.

  • Deployed over 2 million soldiers to the Western Front, playing a decisive role in key battles.

  • Serbia: Contributed to the defeat of Bulgaria alongside French troops.

  • Arab Rebels: Played a crucial role in defeating the Ottoman Empire in the Middle East.

  • Faisal: Arab leader who led the Arab Revolt.

  • T.E. Lawrence: British officer who played a key role in supporting the Arab Revolt.


Historians:

  • Realist School: John Mearsheimer: Argues that the Central Powers' defeat was primarily due to military overstretch and strategic failures.

  • Liberal School: A.J.P. Taylor: Emphasizes Allied strengths, diplomatic successes, and US intervention as decisive factors in Germany's defeat.

  • Marxist School: Eric Hobsbawm: Argues that economic factors, particularly Allied economic superiority, were crucial to Germany's defeat.

The Versailles Peace Treaty

Treaty of Versailles FAQ

1. What were the major consequences of World War I?

World War I resulted in widespread devastation, including approximately 10 million deaths and the collapse of major empires like Russia, Austria-Hungary, and the Ottoman Empire. This led to political instability, mass migrations, and the emergence of new nation-states. The war also caused widespread economic hardship and social unrest across Europe.

2. What were the main challenges faced by the peacemakers at Versailles?

The peacemakers, primarily the leaders of Britain, France, and the United States, had conflicting goals. France sought harsh punishment for Germany, Britain desired a more moderate approach, and the United States aimed for a peace based on idealistic principles. Additionally, they had to contend with the complex political landscape of post-war Europe, including the rise of communism and nationalist movements.

3. How did different historical schools of thought view the peacemaking process?

    1. Marxist historians emphasize the role of class struggle and economic disparities in the collapse of empires and the rise of revolutionary movements.

    2. Realist historians focus on the national interests and power dynamics that shaped the treaty negotiations.

    3. Liberal historians argue that the treaty, while flawed, was not excessively harsh and that its failure to achieve lasting peace was due to its weak enforcement.

4. Was the Treaty of Versailles fair to Germany?

The treaty imposed severe penalties on Germany, including territorial losses, disarmament, and significant reparations payments. This was justified by the "war guilt clause," which placed sole responsibility for the war on Germany. Many Germans viewed the treaty as a humiliating diktat, contributing to resentment and instability in the interwar period.

5. What were the long-term consequences of the Treaty of Versailles?

The treaty's harsh terms contributed to economic hardship and political instability in Germany, creating fertile ground for the rise of extremist ideologies like Nazism. The treaty's failure to address underlying tensions and grievances also contributed to the outbreak of World War II.

6. How did the Treaty of Versailles address the issue of self-determination?

The treaty led to the creation of new nation-states based on the principle of self-determination, such as Poland and Czechoslovakia. However, the process was often messy and resulted in the displacement of populations and the creation of new minority groups, leading to further instability in some regions.

7. What role did the League of Nations play in the post-war world?

The League of Nations was created as part of the Treaty of Versailles with the aim of preventing future wars through collective security and diplomacy. However, it was ultimately ineffective in preventing the outbreak of World War II due to its lack of enforcement power and the unwillingness of major powers to fully commit to its principles.

8. Why is the Treaty of Versailles still a subject of debate among historians?

The treaty's legacy remains controversial due to its complex and far-reaching consequences. Historians continue to debate its fairness, effectiveness, and long-term impact on the course of 20th-century history. The treaty serves as a reminder of the challenges of peacemaking and the enduring consequences of war.


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Timeline of Events:

1914:
  • July 28: World War I begins.
1917:
  • Russian Revolution: Russia falls into revolution, leading to the establishment of a communist state under the Bolsheviks.
1918:
  • November 11: Armistice signed, ending World War I.
  • German Revolution: Germany experiences a revolution, leading to the formation of the Weimar Republic under Friedrich Ebert.
1919:
  • January: Spartacist Uprising in Germany.
  • June 28: The Treaty of Versailles is signed, officially ending World War I.
1921:
  • The Inter-Allied Reparations Commission sets German reparations at £6.6 billion.
1930s:
  • Resentment over the Treaty of Versailles contributes to the rise of Nazism in Germany.

Cast of Characters:Allied Leaders:
  • Woodrow Wilson (U.S. President): An idealist who aimed for a peace based on his Fourteen Points, emphasizing self-determination, disarmament, and the League of Nations. His vision often clashed with the more pragmatic approaches of France and Great Britain.
  • Georges Clemenceau (French Premier): A staunch advocate for punishing Germany harshly due to the immense losses France suffered during the war. He feared future German aggression and sought to weaken Germany permanently.
  • David Lloyd George (British Prime Minister): A moderate who sought a balanced approach. While facing domestic pressure to punish Germany, he also recognized the importance of a stable and economically strong Germany for European recovery.

Other Key Figures:
  • Friedrich Ebert: Leader of the Social Democratic Party of Germany and the first president of the Weimar Republic, established after the German Revolution.
  • Mustafa Kemal Atatürk: Turkish field marshal and revolutionary statesman who led the Turkish National Movement in the Turkish War of Independence. He became the first president of the Republic of Turkey.
  • John Maynard Keynes: British economist who criticized the Treaty of Versailles in his book The Economic Consequences of the Peace. He argued the treaty's harsh economic terms would destabilize Europe.

Historians:
  • E.P. Thompson (Marxist School): Argued that the collapse of empires and political upheaval after World War I resulted from class struggle and economic disparities exposed by the war.
  • Hans Morgenthau (Realist School): Believed the differing goals of Allied leaders reflected their national interests and that the treaty was a means of managing power dynamics rather than achieving a truly fair peace.
  • A.J.P. Taylor (Liberal School): Argued that the Treaty of Versailles was flawed but not excessively harsh. He believed the failure to enforce the treaty, not its terms, was the primary cause of instability in the interwar period.
Versailles_Treaty.pptx

The Other Treaties in the Versailles Settlement: An In-Depth Exploration

Treaty of Versailles: Beyond Germany FAQ

1. What other treaties, besides the Treaty of Versailles, were part of the Versailles Settlement?

The Versailles Settlement encompassed five major treaties:

  • Treaty of Versailles (1919): Dealt with Germany.

  • Treaty of Saint-Germain (1919): Dealt with Austria.

  • Treaty of Trianon (1920): Dealt with Hungary.

  • Treaty of Neuilly (1919): Dealt with Bulgaria.

  • Treaty of Sèvres (1920), later revised by the Treaty of Lausanne (1923): Dealt with the Ottoman Empire (Turkey).

2. How did the Treaty of Saint-Germain impact Austria?

The Treaty of Saint-Germain significantly reduced Austria's size and power. It lost vast territories like Bohemia, Moravia, and South Tyrol, leaving it a small, landlocked nation. Austria was also forbidden from uniting with Germany and had to pay reparations and disarm.

3. What were the key consequences of the Treaty of Trianon for Hungary?

The Treaty of Trianon was particularly harsh on Hungary, stripping it of 75% of its territory and two-thirds of its population. Transylvania went to Romania, Slovakia to Czechoslovakia, and Croatia to Yugoslavia. This loss, along with forced reparations and disarmament, fueled deep resentment and a desire to revise the treaty in Hungary.

4. How did the Treaty of Neuilly affect Bulgaria?

Bulgaria faced territorial losses under the Treaty of Neuilly, ceding land to Greece and Yugoslavia. It lost access to the Aegean Sea, hindering its economic development. The treaty also imposed reparations on Bulgaria.

5. What happened to the Ottoman Empire under the Treaty of Sèvres?

The Treaty of Sèvres aimed to dismantle the Ottoman Empire. It partitioned Ottoman territories in the Middle East among the Allied powers and granted Greece control over Smyrna and Eastern Thrace. However, the treaty sparked the Turkish War of Independence, leading to its eventual replacement with the Treaty of Lausanne.

6. How did the Treaty of Lausanne differ from the Treaty of Sèvres?

The Treaty of Lausanne, signed in 1923, was more favorable to Turkey. It restored Eastern Thrace, Smyrna, and some Aegean islands to Turkish control. It also abolished the previously imposed reparations and recognized Turkey's sovereignty over the Straits, though the area remained demilitarized.

7. What were the long-term consequences of these treaties on Europe?

The treaties, particularly those dealing with Austria, Hungary, and Bulgaria, caused significant political, economic, and social upheaval in Europe. They led to the creation of new states with diverse ethnicities, often resulting in internal tensions and instability. The economic burdens imposed on the defeated nations further compounded their struggles.

8. How do different historical schools of thought interpret these treaties?

  • Realist School: Emphasizes the role of power politics, viewing the treaties as a means for the victors to secure their interests and weaken their defeated enemies.

  • Liberal School: Believes the treaties, while imperfect, represented a necessary compromise in a complex situation, with the peacemakers striving to apply the principle of self-determination.

  • Revisionist School: Critiques the treaties, especially the Treaty of Versailles, for their harsh treatment of the defeated powers, arguing they fostered resentment and contributed to future conflicts.


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Timeline of Events from the Sources

1919:
  • January 18: The Paris Peace Conference begins, setting the stage for the negotiation of multiple peace treaties following World War I.
  • September 10: The Treaty of Saint-Germain-en-Laye is signed with Austria, formally dismantling the Austro-Hungarian Empire and reducing Austria to a small, landlocked republic.
  • November 27: The Treaty of Neuilly-sur-Seine is signed with Bulgaria, resulting in territorial losses and reparations.
1920:
  • June 4: The Treaty of Trianon is signed with Hungary, significantly reducing its territory and leading to deep resentment within the nation.
  • August 10: The Treaty of Sèvres is signed with the Ottoman Empire, effectively dissolving it and dividing its territories among the Allied powers. However, the treaty faces strong resistance in Turkey.
1922:
  • Economic collapse in Austria and Hungary necessitates international assistance from the League of Nations.
1923:
  • July 24: The Treaty of Lausanne is signed with Turkey, revising the terms of the Treaty of Sèvres and restoring some territories to Turkey. This treaty ultimately leads to the establishment of the modern Republic of Turkey.

Cast of CharactersAllied Powers: The victorious nations of World War I, primarily represented by:
  • France: Led by Prime Minister Georges Clemenceau, who advocated for harsh punishments against Germany.
  • Great Britain: Represented by Prime Minister David Lloyd George, who aimed for a balanced approach, seeking to punish Germany while also preventing future conflicts.
  • United States: President Woodrow Wilson played a key role in shaping the peace process, promoting his Fourteen Points plan, which emphasized self-determination and the creation of the League of Nations. However, the US Senate later rejected the Treaty of Versailles, preventing American participation in the League.

Central Powers: The defeated nations of World War I, including:
  • Austria: Once a major European power, Austria was significantly reduced in size and influence after the war.
  • Hungary: Severely punished by the Treaty of Trianon, Hungary experienced significant territorial losses and resentment over the outcome.
  • Bulgaria: Suffered territorial losses and economic hardship following the Treaty of Neuilly.
  • Ottoman Empire: Effectively dissolved following World War I and the Turkish War of Independence, leading to the emergence of the modern Republic of Turkey.

Key Individuals:
  • Mustafa Kemal Atatürk: Leader of the Turkish national movement, who successfully resisted the terms of the Treaty of Sèvres and negotiated the more favorable Treaty of Lausanne. He later became the first president of the Republic of Turkey, implementing wide-ranging reforms that modernized and secularized the country.

Schools of Historical Thought:
  • E.H. Carr (Realist School): Argues that the treaties reflected the power dynamics of the time, with the victors prioritizing their interests and security.
  • A.J.P. Taylor (Liberal School): Believed that the treaties were imperfect but represented a necessary compromise, given the complexities of the post-war situation.
  • Sally Marks (Revisionist School): Critiques the treaties, particularly the Treaty of Versailles, for their harshness and failure to establish a lasting peace.
Versailles_Settlement_.pptx

Defeat of Germany and the Central Powers in World War I: An In-Depth Exploration

World War I: The Defeat of Germany and the Central Powers FAQ

  • What strategic errors contributed to Germany's defeat in World War I?

Germany made several key strategic mistakes: 1) The Schlieffen Plan, intended to quickly defeat France, failed due to Belgian resistance and British intervention, forcing Germany into a two-front war. 2) Attrition warfare at Verdun depleted German resources without achieving decisive victory. 3) Unrestricted submarine warfare drew the United States into the war against Germany. 4) The Ludendorff Offensive, a last-ditch effort, initially made gains but ultimately failed due to logistical issues and Allied counterattacks.

  • How did the weaknesses of Germany's allies contribute to their collective defeat?

Germany's allies, Austria-Hungary, the Ottoman Empire, and Bulgaria, were also struggling: 1) Austria-Hungary faced internal collapse due to ethnic tensions and mutinies. 2) Bulgaria was defeated by Serbian and French troops, leading to its surrender. 3) The Ottoman Empire suffered defeats in the Middle East, culminating in its surrender. These collapses left Germany isolated and unable to sustain the war effort.

  • What economic and military advantages did the Allied Powers have by 1918?

The Allies enjoyed several key advantages: 1) The British naval blockade severely weakened the German economy, causing food shortages and industrial decline. 2) Allied economic mobilization outpaced Germany's, allowing for superior resource allocation and war production. 3) Technological and tactical coordination, including combined arms operations with tanks, artillery, aircraft, and infantry, overwhelmed German defenses.

  • How did the United States' entry into the war impact the outcome?

The US entry into the war was decisive: 1) The American Expeditionary Force (AEF) provided fresh troops and played crucial roles in key battles, such as the Second Battle of the Marne and the Meuse-Argonne Offensive. 2) The US Navy helped protect Allied shipping from German U-boats, ensuring the flow of supplies and troops. 3) American industrial production significantly boosted Allied war material supplies, outproducing Germany.

  • How do different historical schools of thought interpret Germany's defeat?

Different historical perspectives emphasize different factors: 1) Realist historians focus on military overstretch, strategic failures, and the collapse of Germany's allies. 2) Liberal historians highlight Allied economic superiority, strategic coordination, and the decisive role of the United States. 3) Marxist historians emphasize the role of economic factors, arguing that Allied economic power and capitalist competition led to Germany's defeat.

  • What was the significance of the British naval blockade?

The British naval blockade had a crippling effect on the German economy: 1) It restricted imports, leading to widespread food shortages and starvation in Germany. 2) German industrial output suffered due to a lack of raw materials. 3) The blockade contributed to social unrest and weakened German morale, undermining the war effort.

  • How did the Allies' combined arms operations contribute to their victory?

Allied combined arms operations proved highly effective: 1) The coordinated use of tanks, artillery, aircraft, and infantry allowed for greater offensive power and flexibility. 2) This approach overcame the stalemate of trench warfare and allowed the Allies to break through German defenses. 3) German forces struggled to adapt to this modern form of warfare, contributing to their eventual defeat.

  • What was the lasting impact of the defeat of Germany and the Central Powers?

The defeat of Germany and the Central Powers had profound consequences: 1) It led to the redrawing of the map of Europe, with the creation of new nations and the collapse of empires. 2) The Treaty of Versailles imposed harsh penalties on Germany, contributing to resentment and instability in the following decades. 3) The war's devastation and social upheaval laid the groundwork for the rise of extremist ideologies and the outbreak of World War II.


Back to Top

Click below to open/close (uncollapse/collapse) timeline

Timeline of Events Leading to the Defeat of Germany and the Central Powers in WWI:

1914
  • August: Germany launches the Schlieffen Plan, invading Belgium in an attempt to quickly defeat France. Britain enters the war in response to the violation of Belgium's neutrality. The plan fails, leading to a stalemate on the Western Front.
1916
  • February - December: The Battle of Verdun, a brutal battle of attrition, takes place with heavy casualties on both sides but no decisive outcome.
1917
  • February: Germany resumes unrestricted submarine warfare, targeting Allied and neutral ships, including American vessels.
  • April: The United States declares war on Germany, citing unrestricted submarine warfare as a primary reason.
1918
  • March: Germany launches the Ludendorff Offensive (Operation Michael), initially gaining ground but ultimately failing due to logistical problems, exhausted troops, and the arrival of American forces.
  • September: Bulgaria surrenders after defeats by Serbian and French troops.
  • October: The Ottoman Empire surrenders after defeats in the Middle East.
  • November 11: Germany signs the Armistice, ending World War I.

Cast of Characters:Central Powers:
  • Germany: Erich Ludendorff: German general who orchestrated the Ludendorff Offensive. Acknowledged the German army's collapse in August 1918.
  • Austria-Hungary: Faced internal collapse as ethnic groups revolted, contributing to the Central Powers' weakening.
  • Bulgaria: Surrendered in September 1918 after military defeats.
  • Ottoman Empire: Surrendered in October 1918 following defeats in the Middle East, including the Arab Revolt.

Allied Powers:
  • Great Britain: Implemented a naval blockade that significantly weakened Germany's economy.
  • Effectively mobilized its economy for war, maintaining a steady flow of supplies.
  • France: Bore the brunt of fighting on the Western Front, including the Battle of Verdun.
  • Successfully mobilized its economy and coordinated military efforts with its allies.
  • United States: Woodrow Wilson: US President who led the country into war in 1917.
  • John J. Pershing: General who commanded the American Expeditionary Force (AEF).
  • Provided crucial economic and military support to the Allies, tipping the balance of the war.
  • Deployed over 2 million soldiers to the Western Front, playing a decisive role in key battles.
  • Serbia: Contributed to the defeat of Bulgaria alongside French troops.
  • Arab Rebels: Played a crucial role in defeating the Ottoman Empire in the Middle East.
  • Faisal: Arab leader who led the Arab Revolt.
  • T.E. Lawrence: British officer who played a key role in supporting the Arab Revolt.

Historians:
  • Realist School: John Mearsheimer: Argues that the Central Powers' defeat was primarily due to military overstretch and strategic failures.
  • Liberal School: A.J.P. Taylor: Emphasizes Allied strengths, diplomatic successes, and US intervention as decisive factors in Germany's defeat.
  • Marxist School: Eric Hobsbawm: Argues that economic factors, particularly Allied economic superiority, were crucial to Germany's defeat.
Germany_Collapse_.pptx

Watch Armistice by David Reynolds from 22:00 to 34:00, which covers German Army General Ludendorff's final attempt to secure victory in the war. 

Watch the first six minutes of Twentieth Century: Make Germany Pay, World Part 2, which provides an overview of the events surrounding the Ruhr invasion (1923) and the period of hyperinflation (1922-23). 

The hyperinflation period in Germany occurred during the Weimar Republic in 1922–23. It was an economic disaster that impoverished millions of German citizens and paved the way for the rise of the Nazi Party. During World War I, prices in Germany had doubled, but that was just the start of the country’s economic troubles. The German mark rapidly lost nearly all of its value, with inflation turning into hyperinflation until a pound of butter cost millions of marks.

in 1923, Germany's hyperinflation was so high, the exchange rate went from 9 marks to $1 USD to 4.2M marks to $1 US!!!!

One German worker, who used a wheelbarrow to cart off billions of marks that were his week’s wages, was robbed by thieves who stole the wheelbarrow but left the piles of cash on the curb.

The impact of hyperinflation within Germany was uneven. Some profited from it. Adroit speculators like the tycoon Hugo Stinnes made fortunes, and industrialists and landowners who owed money were able to pay off their debts in devalued currency. Others were able to escape the worst - those, for example, whose wealth took the form of property or those with goods or skills which could be readily bartered. Initially the working class suffered comparatively little because trade unions ensured that wages kept pace with rising prices, but as 1923 wore on their position deteriorated. The principal losers in 1923, though, were those with cash savings, many but not all of whom were in the middle class (the Mittelstand). Middle-class savers experienced the trauma of seeing the value of their savings completely wiped out. 

Price of bread in Berlin during that period.

  • December 1918: 0.5 mark

  • December 1921: 4 mark

  • December 1922: 163 mark

  • January 1923: 250 mark

  • March 1923: 463 mark

  • June 1923: 1,465 mark

  • July 1923: 3,465 mark

  • August 1923: 69,000 mark

  • September 1923: 1,512,000 mark

  • October 1923: 1,743,000,000 mark

  • November 1923: 201,000,000,000 mark

Source

Source A

We were deceived, too. We used to say, "All of Germany is suffering from inflation." It was not true. There is no game in the whole world in which everyone loses. Someone has to be the winner. The winners in our inflation were big business men in the cities and the "Green Front", -from peasants to the Junkers, in the country. The great losers were the working class and above all the middle class, who had most to lose.

    How did big business win? Well, from the very beginning they figured their prices in gold value, selling their goods at gold value prices and paying their workers in inflated marks.

... . . You could go to the baker in the morning and buy two rolls for 20 marks; but go there in the afternoon, and the same rolls were 25 marks. The baker didn't know how it happened that the rolls were more expensive in the afternoon. His customers didn't know how it happened. It had somehow to do with the dollar, somehow to do with the stock exchange - and somehow, maybe to do with the Jews.

Erna von Pustau remembering life in Hamburg at the time


Source B

This financial disaster had profound effects on German society: the working classes were badly hit; wages failed to keep pace with inflation and trade union funds were wiped out. The middle classes and small capitalists lost their savings and many began to look towards the Nazis for improvement. On the other hand landowners and industrialists came out of the crisis well, because they still owned their material wealth - rich farming land, mines and factories. This strengthened the control of big business over the German economy. Some historians have even suggested that the inflation was deliberately engineered by wealthy industrialists with this aim in mind. However, this accusation is impossible to prove one way or the other, though the currency and the economy recovered remarkably quickly.

Norman Lowe, Mastering Modern World History (1982)

Source C

On Friday afternoons in 1923, long lines of manual and white-collar workers waited outside the pay-widows of the big German factories, department stores, banks, offices ... staring impatiently at the electric wall clock, slowly advancing until at last they reached the window and received a bag full of paper notes. According to the figures inscribed on them, the paper notes amounted to seven hundred thousand, or five hundred million, or three hundred and eighty billion, or eight­een trillion marks - the figures rose from month to month, then from week to week, finally from day to day. With their bags the people moved quickly to the door, all in haste, the younger ones running. They dashed to the nearest food store, where a line had already formed. Again they moved slowly, oh, how slowly, forward. When you reached the store, a pound of sugar might have been obtainable for two millions; but, by the time you came to the counter, all you could get for two millions was half a pound, and the sales­woman said the dollar had just gone up again. With the millions or billions you bought sardines, sausages, sugar, perhaps even a little butter, but as a rule the cheaper margarine - always things that would keep for a week, until next pay-day, until the next stage in the fall of the mark....

The printing presses of the government could no longer keep pace.... You could see mail-carriers on the streets with sacks on their backs or pushing baby carriages before them, loaded with paper money that would be devalued the next day. Life was madness, nightmare, desperation, chaos.... Communities printed their own money, based on goods, on a certain amount of potatoes, of rye, for instance. Shoe factories paid their workers in bonds for shoes which they could exchange at the bakery for bread or the meat market for meat.

… suddenly, the mark lost its value. The war loan was worth nothing. Savings of a lifetime were worth nothing. . ..

Money had lost its value - what, then, could have value? Of course, many were accustomed to having no money; but that even with money you had nothing.... First the Kaiser gone, then the silver coins with his likeness had gone and unknown faces, sometimes distorted to frightful grimaces by eccentric artists, stared at you from worth less paper notes.

Konrad Heiden


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Unknown. “Cамые известные люди планеты на одной картине” [The Most Famous People of the Planet in One Picture]. 2007, /fishki.net/. Public domain.

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