Before, and even during the First World War, Germany was thought of as a major powerhouse in Europe. It was a big producer of many commodities Europe used, and it's territorial land mass covered a large portion of Europe.
When the First World War ended, Germany had done a complete about face and it was now looked down upon in not only Europe but also the rest of the world, for the damage it had caused and lives it had wasted.
Resulting from Germany's loss of the war there were many political, economic, and social consequences the government and citizens had to deal with.
The Treaty of Versailles included provisions that affect Germany both economically politically.
Germany was forced to accept a War Guilt clause. This clause forced them to take the full blame for the outbreak of the First World War. This was socially bad for the Germans, because there was already a general dislike of them, and accepting the blame for the war, which they had no choice but to do, simply fortified the world's opinion.
The Treaty of Versailles also demanded that Germany pay damage and reparations in the amount of 35 billion dollars US with interest. This doomed the future of the German economy, because even if it were booming all the profits would be used to pay off war reparations. The Treaty also called for a demilitarization of the Rhineland and a limitation on the size of any future German army. This was embarrassing to the German public and not only put them out of commission, but also forced a lot of people out of work.
Due to other provisions set by the Treaty of Versailles, Germany was no longer allowed to align itself with Austria, with who she had always been allies with and who had been one of her major allies during the war. This left Germany standing alone and unarmed surrounded by countries that disliked it. It was not it good standing, and could not come back into the good graces of the rest of the world because it had nothing to offer.