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The Weimar Republic, established after Germany's WWI loss, faced economic devastation due to war debt, leading to hyperinflation and mass unemployment. Foreigners exploited the cheap prices, fueling a booming sex industry in Berlin with up to 100,000 prostitutes nightly, including child prostitution advertised in newspapers. Homosexual bars and explicit content thrived, alongside drug use.
Magnus Hirschfeld's Institute of Sexual Research in Berlin promoted radical sexual theories, coining "transvestite" and "transsexual," and performing early sex reassignment surgeries. Art, music, and film became sexualized and anti-authoritarian, with Jewish figures prominent in the film industry. The Dadaist art movement rejected capitalist norms.
Jews, though a small minority, held significant influence in politics, the press, and the arts, leading to the perception of a "Juden Republic." The NSDAP piece claimed Jews held a disproportionate number of positions as notaries, doctors, hospital directors, lawyers, and dentists. After Hitler's rise, homosexual bars were shut down, and the Institute for Sexual Research was pillaged, with its books burned.