Economic Consequences of Treaty of Versailles

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The Economic Consequences of the Treaty of Versailles |

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Jesse Devinney |

11/16/2010 |

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The Treaty of Versailles, signed June 28, 1919, marked the end of World War I where the allies, mainly England, France, and the United States, punished Germany for its involvement in the war. The document had a profound effect on the economic circumstances in Germany and halted much of the growth that Germany could sustain in the coming years. The negotiations of the document were primarily conducted without a representative from defeated Germany in the room. The allies were extraordinarily interested in punishing Germany to the extent that the empire ‘would never rise again’. France, in particular, was exceedingly interested in diminishing German influence for all of time. With these aims in mind, the allies decided to draft the document and force the Germans to sign it, still without their input. The treatments in question regarded concessions of territory, disarmament, and war reparations to the victors. Obviously, there were several economic consequences that came out of the harsh treatment on the Germans by the Allied leaders.

The Treaty of Versailles required Germany to give up much of its land and colonies in order for the nation to cease its empirical expansion. Not only were the German colonies to be divvied among the victors of the war, but also areas of land that were traditionally German speaking, but more strategic from a military standpoint, were Germany to press its influence in the future. The mainland areas included the counties of Alsace and Lorraine were two such counties that were always in the middle of the conflict between France and Germany. These counties had been part of the German Empire since the end of the Franco-Prussian War in 1871. However, Alsace and Lorraine were a part of the French Empire prior to the Franco-Prussian War. The point of contention is that many of the people residing in these areas were...