The causes for World War II are many, but the underlying source for the deaths of 65 million people was economic. The Treaty of Versailles, blaming the Germans solely for the First World War and demanding crippling reparations, was the nexus of World War II. Germany was forced to surrender colonial territories and militarily disarm, creating German resentfulness of the treaty. In 1923 the Weimer Republic delayed reparation payments, leading France and Belgium to occupy the Ruhr Valley, effectively appropriating the coal and metal production that took place there.

As much of German manufacturing was dependent on coal and metal, the loss of these industries created a negative economic shock leading to a severe contraction. This contraction, as well as the government’s continued printing of money to pay internal war debts, generated spiraling hyperinflation. This economic suffering and humiliation ultimately led to the population turning to Adolf Hitler as their savior.

The global trade contraction exacerbated the mistrust and anger building throughout the world. Tariffs and counter-tariffs made the Great Depression greater than it had to be. The protectionist policies of countries around the globe denied key raw materials to countries dependent upon imports. While the British, French, Soviets and Americans had large colonial empires to turn to for access to much needed raw materials, countries such as Germany, Italy and Japan did not.

“Have-not” nations found it increasingly necessary to use military force to annex territories with the much-needed resources. Such military force required extensive rearmament and, the case of Germany, meant a direct violation of the Versailles Treaty.

This ultimately resulted in war breaking out in Europe. The American oil embargo on Japan ultimately resulted in the attack on Pearl Harbor and the start of the Pacific war.