By 1918, Germany was experiencing severe hardships from World War 1: - Germany was virtually bankrupt and national income had fallen significantly. - Over 600,000 widows and 2 million children had lost their fathers, straining Germany's welfare system. - Industrial production had fallen by one-third, deepening divisions within German society. - The war led to a revolution in late 1918 and the establishment of a democratic republic, though it remained unstable.