Why was there so much social hardship in Germany between 1918 and 1923?There was so much social hardship in Germany 1918 and 1923 because they spent all of their money on the war, which they then lost. Next came the Treaty of Versailles, this made the German government pay reperations of 6.6 billion mark. After losing gold reserves and their income falling, by 1923 they could no longer pay. The French then confiscated Germany's raw materials, manufactured goods and industrial machinery, which resulted in the German workers striking. Therefore, the French responded by arresting anyone who did so and they also brought in some of their own workers.This disruption increased Germany's debts, unemployment and the shortage of goods. These shortages caused inflation, so people had to pay more to get their supplies that they needed. The unemployment and failing factories meant that they would receive less money from taxes and the government income was only a quarter of what was required. As a result, the Germans decided to print more money. Initially, this helped the Germans to pay reperations, however it resulted in inflation being made worse. The prices rose and as they did, more money was being printed, which once again rose the prices, causing hyperinflation. This meant that German marks became worthless to other countries' currencies, so the shortages of goods got even worse. This went on until August 1923 when a new chancellor was appointed - Gustav Stresemann, who cancelled the old mark and introduced a new currency - the Rentenmark.
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