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The Collapse of Weimar Germany
Germany, due to the harsh terms of the Vrsailles Treaty, was particularly hard hit by postwar inflation in the 1920s. Then, in the 1930s, Germany suffered more than other European country from the Depression, including extensive unemployment (6 million were jobless by 1932) and widespread poverty.
The parties of order (conservatives, liberals, socialists) debated what, if anything, if they could do for the unemployed:
Socialists, who represented the unions whose members were the hardest hit by unemployment, wanted to increase taxes on property to pay for unemployment payments.
However, a coalition of liberal nationalists and conservatives controlled the government. These parties represented property owners, opposed property taxes and insisted on balancing the budget. This meant that the government could not offer any support to the unemployed. This meant also that employers could lower wages for those who were working, since the union members could not strike.
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