In the economies of many nations during the early 20th century, national governments in many cases exercised direct control over the means of production and consequently controlled through this means the course of the economy of their nations. This without becoming socialisms, but being the direct predecessors of this system. Thus, the companies that produced in the country did so with prior authorization from the government to operate, and the rest of the economic freedoms were also subject to the will of the government.
The Treaty's required reparations amplified the state of Europe's economy in Germany, causing hyperinflation. The French insisted on the Treaty being harsh out of fear of Germany instigating another war.
