2. Printing Money = Inflation
During World War I Germany did not
increase taxes to cover the cost of the
war. Instead they printed more
money.
When Germany lost the war and had
to pay war reparations they printed
more money.
This made the value of money
decrease – simply put the more of
something there is the less value it
5. Economic Problems =
Government Problems
People who were on a fixed income
saw their life savings become
worthless.
Many who were unemployed could no
longer afford to feed their families.
This led to Germans questioning their
new government and the value of a
democracy.
6. Economic Stability
Charles Dawe an
American banker
provided Germany
with a $200 million
loan from America to
stabilize their
currency (give it
value). He also set a
payment schedule
for Germany.
In 1924 the Dawes
Plan went into action
and helped Germany
get back on track by
1929.
7.
8. Peace?
After Germany’s
economy was back on
track a German
representative met
with a French
representative in
Locarno, Switzerland.
They promised to
never fight again and
signed a peace treaty
between Germany and
France.
For doing this
Germany was allowed
to join the League of
9. Kellogg-Briand Pact
After the Locarno
meeting the US and
France created the
Kellogg-Briand
Pact which was an
agreement that
countries would
never use war to
solve their problems.
Many countries
signed this pact
including Germany
and the Soviet
Union.
10. Questions to Consider
Who would enforce these treaties?
How could these treaties be enforced?
Once the economy in Germany
stabilized do you think it would change
the German people’s view of
democracy? Why or why not?