Why did Germany suffer economic problems immediately after the war?
Germany suffer severe economic problems after the war as it shifted from a war-time economy to a peacetime economy. The German people were surviving on turnips and bread and even the flour for the bread was mixed with saw-dust to make it go further. Germany was virtually bankcrupt. For example, national income was about one-third of what it had been in 1913 and industrial productions was about two-thirds compared with production in 1913.
Why was this the case?
There were a number of reasons:
1) War left 600,000 widows and 2 million children without fathers. By 1925, the state was spending about one-third of its budget in war pensions.
2) There was virtually no trade between countries.
3) The effect of the Treaty of Versailles - According to the terms of the Treaty of Versailles, Germany had…