After defeat in World War I, Germany was economically devastated. This was partly due to the Treaty of Versailles, which forced Germany to pay expensive reparations to France and Great Britain. On top of that, the treaty also forced Germany to give up 13% of its land. Initially, Germany attempted to recover from the war and treaty through social spending. This social spending included the creation of transport projects, as well as the modernization of power plants and gasworks; all of which have been used to combat the rising unemployment rate. Social spending will continue and start to grow at a high rate. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay In 1913, the government spent about $20.50 per resident, and by 1925 it had risen to nearly $65 per resident. Finally, in 1929, spending reached over $100 per resident. This increasing amount of government would subsequently cause ongoing deficits. Germany's municipal finances eventually collapsed in 1930. Although it appeared that this collapse was due to debt, the reality of the situation was that ordinary budgets were responsible, as municipal officials and politicians were unable to restore order to them. Further exacerbating Germany's economic problems, income tax revenues began to decline. In 1913, over 53 percent of all tax revenue came from income, but by 1925 it dropped to 28 percent. As revenue from income taxes continued to decline, the government began to depend more and more on state commerce and property taxes; as well as on profits made by municipal services (such as power plants). Adding to its economic desperation, Germany, faced with compensation it could not afford, began printing exaggerated sums of money. This threw the country into a state of hyperinflation, which reached the point where millions of dollars were left worthless. With Germany at such a weak and vulnerable point, Hitler began his rise to power. He was able to do this in part because whenever something bad happens, people always want someone to blame. Hitler convinced the Germans that the Jews were responsible for Germany's poor economic situation, as well as other problems the nation had. He also convinced people that he had a plan for a quick economic recovery. He outlined the plan, which he said over four years, would completely eliminate unemployment across Germany. Although this plan would not increase the level of income for the enrichment of the population, it would increase military strength.