answersLogoWhite

0


Best Answer
AnswerFor the first couple of years of the war Germany's civilian economy did quite well. Conquered countries were forced to accept arbitrary low exchange rates on their currency, allowing Germans to buy those nations goods very cheaply. (this is much like China does for the USA today, voluntarily). The German government encouraged this situation because they did not want to stress the German civilian with a true war footed economy.

Later, around 1942, as the Allied bombing began in earnest and the Russian front started to deteriorate, the civilian economy began to suffer.

Larger cities suffered air raids, blackouts, electrical and water cut offs, low food rations, etc.

Nonetheless, Germany did not begin a true war time economy until mid 1943, much later than her rivals. For a few examples, Germany continued to manufacture useless items such as wall paper (15,000 tons) until almost the end of the war. There were also large numbers of domestic employees being used, hands that should have been involved in the war effort. Perhaps the most critical failure of the German economy was not to utilize women in industry, a practice already widely accomplished in the Allied nations.

Overall the German economy performed well during the war despite desperate shortages of some raw materials. However, it could have done much better with more planning and better utilization of resources.

AnswerGermany in 1939 had not been crippled by the debts of the Versailles treaty. Hitler in a short period of time spent more on re-arming Germany than Germany had ever paid to France & the UK.

The view that the Versailles treaty caused (or would cause) great German hardship was a view held by many economists in 1919 and by the American government. The great economist Keynes voiced grave concern over the economic effects of the treaty at the time however he later admitted to underestimating Germany's ability to pay. In fact little ever was paid. Many people to this day still blame the Versailles treaty for Germany's economic problems but I'm not sure how valid such an opinion is when scrutinized with the facts.

Much of Germanys inter war economic problems were a natural side effect of WWI itself and of German governmental mismanagement of the German economy. The Versailles treaty was a factor but one that should not be exaggerated. Reparations expenses only made up about a third of the German government spending budget deficits in the years immediately after WWI and the German government appears to have deliberately pursued the economic policy of printing more and more money to flood the money supply to pay for their deficit. Hyperinflation was the result. This was largely self inflicted.

"Germany was neither dismembered nor ruined. Reparations could, and were, scaled down and, until the great world depression of the 1930s; the Germans recovered a high degree of prosperity. In fact, the establishment of the London schedule of Payments in 1921 determined that the real amount the Germans had to pay amounted to only 6 percent of their annual national income. The Dawes plan of 1924 reduced this to 3.3%, and the Young Plan of 1929 to 2.6%. Germany never paid even these amounts in full, and the payments were cancelled entirely in 1932.

Furthermore, if Versailles is compared to the French settlement the Prussians imposed in 1871, Brest-Litovsk, and the war aims of the Kaiser (to effectively subjugate all of Europe and use it as a probable base for launching a veritable Weltpolitik), it was not at all harsh.

User Avatar

Wiki User

13y ago
This answer is:
User Avatar
More answers
User Avatar

Wiki User

18y ago

Germany lost land to the Allies and had to pay reperations to pay for the damage done during the war.

This answer is:
User Avatar

User Avatar

Wiki User

14y ago

This question is far too vague to be answered properly. Do you mean economically? The effect on national identity? In local or international politics? Sociologically? Ethnically?

This answer is:
User Avatar

User Avatar

Spotify Tati

Lvl 7
4y ago

It was divided into military occupation zones that led to the creation of a wall to separate East Germany and West Germany.

This answer is:
User Avatar

User Avatar

Wiki User

11y ago

Bankrupted it

This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: How did the world war 2 affect the Germany economy?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

How did World War 2 affect economy the economy?

it increased wages


How did world war war 2 affect the economy?

it increased wages


How did the world war 1 affect the economy of the US?

it caused the economy to go down


Does Germany's current economy have anything to do with World War I or World War 2?

no the German does not in vole the world war 1 or 2


Why did Germany's economy nosedive following world war 1?

huge war reparations


Did World War 2 affect the economy?

it increased wages


How did the World War 2 affect economy?

it increased wages


How did World War 2 affect economy?

it increased wages


What was the economy in World War 2?

America's economy was in terrible shape, but Germany's, Italy's, and Japan's economy where in great shape, Germany had the best at the time. Adolf Hitler made the Economy in Germany prosperous.


After World War 1 how did Germany's economy compare to Russia's economy?

The weather is nearly very hot.


How did Germany lose Russia as an ally during World War I how did this affect the German war plans?

Russia was not an ally of Germany in World War 1.


Did World War 2 have a big affect on the US economy?

Yes.