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  • Essay / How economic disarray and lack of government confidence...

    After the First World War and the signing of the Treaty of Versailles in 1919, the Italian and German economies plunged into turmoil. Germany inherited all war responsibilities in the form of harsh monetary reparations, while Italy found itself excluded from paying war reparations. It was for these reasons that the Treaty of Versailles had a considerable weakening effect on the German and Italian states after World War I, which created a need for change in these countries. As former Communist Party member Arthur Koestler wrote in the 1930s, they were “ripe for change.” (Backman, 217) Benito Mussolini and Adolf Hitler used this to their advantage and managed to overthrow the existing governments with the support of the common man. The Treaty of Versailles imposed unjust conditions on the Germans in reparation for the war which led to the destabilization of the country. the German state and the need for change. The treaty imposed monetary damages on Germany of more than $31.5 billion, which caused a severe economic downturn in German society and resulted in hyperinflation of the German currency. Thi...