How did ww1 contribute to a german economic crisis

After World War I German has to pay a huge atonement to France and Britain along with huge social spending

The drastic effect of World War I made German economy suffer a devastating loss. Because of the Versailles Treaty (28th June, 1919) German was forced to pay a huge amount of atonement to France and Britain.

German tried through the way of transportation project, power plant project etc. to overcome the debt. But the increased amount of money spending on social issues added to the deficits. German was inflated and this condition gave Hitler the opportunity to ascent his power over Germany.

the reparations they were forced to pay caused them tonhave to loan money from USA and consequently caused them to go into debt during the great depression in the 1930s, as the USA were in need of the money at the time but they had no way of receiving it and therefore causing trouble for both countries economic stability