In 1920, Germany was producing less then half its original economy before World War I. The agriculture began to fail due to all the animals that were eaten in the war, this caused a lack crops for food. In May 1921, the reparations for World War I were set by the Versailles treaty costing Germany 132 billion dollars to be paid to the allied countries. The Germans had no motivation to work because any money they made had to go to the Allies and their economy stayed the same.
Late 1923 brought about the first move to help the economy. The United States loaned 800 million dollars to help rebuild the German economy. Using the new funds, the government installed modern tools into their factories and industries. The coal and iron production soon doubled and exports finally began to rise. By 1928 the total exports exceeded the pre war economy and paid off their war debts by borrowing money from other countries. The other debts that were required started getting more and more opposition as the people that were responsible for them died. Nationalist groups began to pop up, speaking out against the Allies for forcing them to pay these debts, also at the German government for paying them. .
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While the economy was recovering from the setbacks it experienced from the Treaty of Versailles, the German army was also exppanding under the power of a new commander named Seeckt who reformed the whole army structure. He began to train the army until they were considered the best in Europe. During this time Germany found ways of getting around the Treaty of Versailles by getting Sweden, Spain, and others to build war materials for them. The army was made loyal to the state and not the government. With the country having a strong economy, an elite army, and military supplies being built nonstop, the country was ready for another war even before Hitler came to power.
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Before the First World War the United States was very active in foreign affairs in Europe, but after experiencing the horrors of the war the United States wanted to stay out of foreign affairs and concentrate on their own affairs.
