Immediately following the end of World War I, Germany was intent on establishing a democratic system which would facilitate the rebuilding of the Republic. Despite being under great pressure to turn Germany into a communist state, the Social Democrats established the Weimar Republic. This was to be an effective democratic state; it never succeeded!
Reasons for failure
The democratic experiment failed for many reasons. High taxes were imposed by all levels of government in order to recoup losses incurred during the war. The black market thrived in goods and currency. Gangs of hoodlums and the mafia controlled industry and trade.
The German people were humiliated as the allies put increasingly difficult demands on the new republic. Territory that was once part of the greater Germany was transferred to Poland, Denmark, France and Belgium. Germany became a shell of its former self.
The allies forced the Weimar Republic to demilitarize and they placed strict restrictions on Germany’s ability to restore its military tradition.
The once mighty Germany was brought low. Unemployment began to increase; the middle class was wiped out. The average citizen could barely earn enough money to put food on the table. In addition, a new word was created to describe the incredible inflation that occurred. The word was hyperinflation. No other word could better describe the 2,000 – 3,000% annual rate of inflation that Germany experienced.
A dictator arises
The German people looked for a solution that the government of the day could not provide. They found their answer in a man who would make Germany great again. He was the leader of the National Socialist German Workers’ Party (NSDAP). Adolf Hitler rose to power in 1933. Under his leadership, Germany would once more become the leading power on the continent.
Grolier Encyclopedia chronicles the economic recovery that Germany experienced under the leadership of Hitler. “Germany’s economic recovery reinforced the widespread support Hitler enjoyed throughout the Reich during the 1930’s. Hitler’s economic policies were initially geared to recovery from the depression; thereafter, they were tied to his foreign-policy goals….He undertook a vast program of public works, including construction of a network of superhighways (Autobahnen), which both returned the unemployed to work and primed the economy.”
This aspect of Hitler’s regime has been overshadowed by the atrocities that he committed against the Jews during the holocaust. But during his early years, he engineered an incredible economic recovery in Germany.
Now Russia
The situation in Russia today is strikingly similar to post WW I Germany. The once mighty U.S.S.R. has been divided up into 12 smaller republics, thus wounding the pride of the nation. Russia has been trying to implement a democratic system and market economy since early 1990. It has failed miserably in this goal.
Russia has been humiliated as the once powerful Soviet army has become a shell of its former self. Unemployment is currently announced at 13%. Heavy taxes are leveled by every facet of government and inflation is running at an annual rate of 3000%.
Documenting the tax burden, the following was tabulated, “The tax bill for running a local oil business includes local taxes of 20% on revenues, a mandatory conversion of half its US dollars to rubles at the market rate, a tax of profits from which wages cannot be deducted as an expense, a 28% value added tax, a 60% individual income tax and an export tax of $5.85 a barrel – more than a quarter of the world price” (New York Times Magazine, March 7, 1993).
Black market prospers
Because of hyperinflation, the market economy is dominated by the black market. Today, the black market rules both currency and trade, with gangs of hoodlums and the Mafia controlling industry and commerce.
A 3000% inflation rate means that a loaf of bread which costs $2 today will cost $60 one year from now.
Solutions needed
The Russian administration under President Boris Yelstin is clearly not providing the solutions that the people must have. Every man desires a stable economy, one in which he doesn’t have to steal or embezzle to provide for his family.
Russia is ripe for new leadership. “Nils Lundgre, chief economist for Nordbanken, argues that history could repeat itself as Russia sinks into political and economical collapse, with a new dictator seizing and maintaining his hold on power by taking Russia in a nationalistic direction, in which ‘greatness’ would be regained by restoring military power” (Toronto Star, February 14, 1993).
The Russian military force has been dormant for only a few years and could easily be reassembled. The Russian people are crying out for a change; they desperately want a solution. It’s possible that a new leader will emerge, one who will make Russia great again. History could indeed repeat itself.
Could this leader be the one who will not be remembered for engineering a Russian economic turnaround but, instead, may be the very man who will lead the northern invader against Israel?
Let us pray that that day will come quickly.
The Origin of the Organic World – Part One