The Treaty of Versailles
- Due to the harsh consequences of the Treaty of Versailles, Germany was forced to pay huge amounts of reparations to the allies as Germany was blamed for the war
- Germany had nowhere near the amount of money needed to pay off these reparations and went into their own depression
- Germany couldn't trade either and this was a problem since they didn't have all neccessary resources, they had to trade for them
- Germany eventually had to start borrowing money from other countries but when those countries stopped borrowing Germany money, they had no means of paying off their debt
- Even after three years after the Treaty of Versailles was signed, Germany still couldn't pay off thier debt
- This depression was bad for Germany's repuation as a European superpower and for the German people as they were faced with very high unemplyment rates
- The main cause of the Great Depression was due to a severe market crash on October 29, 1929 where the Dow Jones fell -12%
- Investors began to panic and traded away nearly $16,000,000 in stock
- The economy began quite terrible and most Americans couldn't find any economic success
- Poverty rates increased significantly and many people lost their homes and valuables
- There was also a large issue with supply and demand as many more expensive goods were being produced compared to the number of people that coudl afford to buy those goods
- Both the Great Depression and the Treaty of Versailles had awful economic effects on their respective nations resulting in unemployment and depressions in both countries, one being a Great Depression