What was life like in Europe after WW I? Not good. The economy was in ruins, and countries where fighting took place were physically devastated as well. To make matters worse, countries such as Germany who were the aggressors had large war debts to repay as a result of the Treaty of Versailles.

Below are some pictures that show just how bad inflation (decrease in value of money) had become. In Germany, the money was worth so little that people often used it as wallpaper and children stacked it like blocks. With money that was worthless and the country in shambles, it was very difficult for the average European to make ends meet.

Source: German Inflation 1923, Fresno Unified School District

Source: Bundesarchiv Bild 183-R1215-506, Berlin, Reichsbank, Geldauflieferungsstelle, Wikimedia

Source: Bundesarchiv Bild 102-00104, Inflation, Tapezieren mit Geldscheinen, Wikimedia

The Great Depression of the 1930s affected Europe as well as America. This made the already tough economic times even worse. In many places, unemployment reached all-time highs. With high unemployment comes reduced consumer spending. Businesses were not making any money, and production of necessary goods was down; therefore, prices were very high.

In many European countries, Socialism began to gain popularity as a political movement. Socialism is a political theory in which the government controls key sectors of the economy (such as utilities, medical care, and education). A socialist country also provides more services for citizens than a capitalist nation. The idea is to provide a safety net of sorts so that all citizens have a basic standard of living. Their most basic needs are met by the government.

How would you feel if you lived in one of the defeated countries after WWI? Remember, these countries were humiliated after the war. In your notes, record your thoughts about the problems countries face during hard economic times. Consider unemployment, inflation, the harsh requirements of the Treaty of Versailles, etc.