In 1947, the Marshall Plan was put into action which meant that between
1947 and 1952, Germany was given $13 billion of economic assistance.
Much of this money was used to help rebuild the western side of Germany.
In contrast, in the eastern side, Soviets extracted 23% of East German
GNP for reparations which meant the people there had even less money.
This affected social development because when Germany re-unified after
the demise of the Soviets, it was extremely stressful trying to merge the
advance, built up West side with the much poorer East.
Overall, the defeat in the Second World War - while crippling Germanys
people and her economy (hyperinflation led to savings losing 99% of their
value) was in some sense good for Germany. It led to the Deutsche Mark
being introduced in 1948 and the Bundesbank in 1957 which both greatly
helped economic recovery. In a way, things had to get really bad in order
for Germany to get better and rebuild herself.
The defeat in the First World War was also a significant turning point in
terms of Germanys development. It cost Germany $38 billion and led to
over 7 million casualties. The Kaiser was forced into abdication, this left a
power vacuum which needed to be filled.
Between 1914 and 1918, industrial output fell by over 40%, millions of
working men were killed in war, and there were food shortages.
Germanys usual trading partners favoured doing business with the Allies
over her so not much money was coming in from imports and exports
either. All of this led to unrest and led to radicalisation of views, in
particular Communism was popular in industrial cities, not surprisingly.
Germany felt mistreated and the signing of the Treaty of Versailles by the
Weimar Republic in 1919 seemed to be the final push for the people of
Germany to start taking action, it led to several Left Wing uprisings in
1919. For all of these reasons, people started to support the Nazi party
more and more, Hitler was seen as a symbol of hope.
It can be argued that, ultimately, for all of these reasons, if there wasnt a
power vacuum to be filled after Germanys defeat in World War One, the
Nazis would never have risen to power and had the popularity they did,
and the Second World War wouldnt have happened. Therefore, the defeat
in World War One was a much more significant turning point in terms of
the development of Germany because without it, there wouldnt have
even been the turning point of World War Two.