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78: Germany Prepares for War Pt. 1 - Overview

History of the Second World War

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The Economic Situation in Germany Before 1936

By 1938 the spending on the Wehrmacht accounted for about 80% of the German economy. This was felt to be absolutely necessary as other nations were also increasing their spending, with France and Britain massively expanding their own rearmament efforts starting in that year. The continued expansion of the rearmament campaigns caused some serious problems because they required a huge amount of imported goods. Because of the needs for these imports and the drastic reduction of exports, Germany would have to solve its foreign currency issues.

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