The German economy was destroyed and the middle and working classes lost everything. History is repeating itself! | Quote |
This is from a worldwide best selling book published in 1960 called "The Rise and Fall of the Third Reich - A History of Nazi Germany," by William L. Shirer. "The strangulation of Germany's economy [by the occupation of the Ruhr by France and the striking of German workers there] hastened the final plunge of the mark. On the occupation of the Ruhr in January 1923, it fell to 18,000 to the dollar; by July 1 it had dropped to 160,000; by August 1 to a million. By Novermber, when Hitler thought his hour had struck, it took four billion marks to buy a dollar, and thereafter the figures became trillions. German currency had become utterly worthless. Purchasing power of salaries and wages was reduced to zero. The life savings of the middle classes and the working classes were wiped out. But something even more important was destroyed: the faith of the people in the economic structure of German society. What good were the standards and practices osf such a society, which encouraged savings and investment and solemnly promised a safe return from them and then defaulted? Was this not a fraud upon the people? And was not the democratic Republic, which had surrendered to the enemy and accepted the burden of reparations, to blame for the disaster? Unfortunately for its survival, the Republic did bear a responsibility. The inflation could have been halted by merely balancing the budget--a difficult but not impossible feat. Adequate taxation might have achieved his, but the new government did not dare to tax adequately. After all, the cost of the war--164 billion marks--had been met not even in part by direct taxation but 93 billions of it by war loans, 29 billions out of Treasury bills and the rest by increasing the issue of paper money. Instead of drastically raising taxes on those who could pay, the republican government actualy reduced them in 1921. From then on, goaded by the big industrialists and landlords, who stood to gain though the masses of the people were financially ruined, the government deliberately let the mark tumble in order to free the State of its public debts, to escape from paying reparations and to sabotage the French in the Ruhr. Moreover, the destruction of the currency enabled German heavy industry to wipe out its indebtedness by refunding its obligations in worthless marks. The General Staff, disguised as the 'Truppenamt' (Office of Troops) to evade the peace treaty [of Versailles] which supposedly had outlawed it, took notice that the fall of the mark wiped out the war debts and thus left Germany financialy unencumbered for a new war. The masses of the people, however, did not realize how much the industrial tycoons, the Army and the State were benefiting from the ruin of the currency. All they knew was that a large bank account could not buy a straggly bunch of carrots, a half peck of potatoes, a few ounces of sugar, a pound of flour. They knew that as individuals they were bankrupt. And they knew hunger when it gnawed at them, as it did daily. In their misery and hopelessness they made the Republic the scapegoat for all that had happened. Such times were heaven-sent for Adolf Hitler." It goes on to say that the idea of a people leaning more towards a dictatorship because of the swindling, "robber's state" they found themselves starving in, though they had billions of worthless marks, was coming to fruition. We're headed that way people. |
In this Blog I will discuss Life the Universe and Everything, and maybe even Prairie Home Companion.
Tuesday, July 03, 2007
This is how Hitler came to power.
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