Question

Due to conditions set forth in the treaty of versailles, germany lost much of its territory. why did this prove to be economically fatal to the nation?

Answer 1

The correct answer is: "the payment of war reparations exhausted the German economy which even suffered an hyperinflation crisis".

After WWI, the Treaty of Versailles was signed in 1919, through which (among other provisions), the victorious powers:  France, UK and Russia imposed to Germany the dismantling of its army and the payment of very abussive war reparations.  

These reparations not only exhausted the possibilities of recovery of the German economy, but also generated a feeling of nationalism against the  European powers, as German felt that they were oppressing them. The very complicated economic situation, which led to an hyperinflation crisis, help to gain support for the extreme-right wing nationalist party leaded by Adolf Hitler, which promised to restore German pride and to recover its ancient glory by defeating its European enemies.

Answer 2

Answer:

By accomplishing the treaty of Versailles Germany lost around 13% of his European territory and 100% of his colony territory. As a consequence Germany lost 10% of his European population and 100% of his colonial population, this was 12 million people. Taking a big hit to his production and working force. The loss left Germany without any source of income outside Europe, decimating his productive capability to a staggering state after paying 33 Billion dollars.

Explanation:

The treaty o Versailles established that Germany accomplished certain conditions in which territory was one of the most important and had an amazing impact on its economy.

In the first place because Germany's European territory suffered a reduction of 13% of his total territory; 27,000 square miles. In the second place because Germany lost 1,026,321.69 square outside its European territory or at a staggering 100% of his colonies.

On the first hand, the colonies provided Germany a very wide source of income that sustained its development, on the other hand, its workforce provided them nice labor and productive force that executed all the tasks his European population couldn´t perform. And after paying his debt to the affected countries, Germany lost its balance and didn't have his very effective income source to provide it a resurge.

Thank you.