Under clause 231, the ‘War Guilt Clause’, Germany had to accept complete responsibility for the war. Germany lost 13% of its land and 12% of its population to the Allies. This land made up 48% of Germany’s iron production and a large proportion of its coal productions limiting its economic power.
The German Army was limited to 100,000 soldiers, and the navy was limited to 15,000 sailors. As financial compensation for the war, the Allies also demanded large amounts of money known as ‘reparations’.
Initially, Allied forces still blocked shipments of food and supplies from entering Germany. Although some food and supplies got through, these were sparse and therefore expensive. The ‘Stab in the Back Myth’ fed extreme nationalism, antisemitism and anti-communism. The new government was unpopular amongst large sections of the population, and some people still felt a loyalty to the Kaiser.
The Roaring 20's. Before the world entered into an economic decline, the performance of the stock market was well above par, and the industrial output more profitable than it had ever been. ...
