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The Weimar Republic, established after Germany's WWI loss and burdened by massive debt, faced economic devastation, hyperinflation, and high suicide rates. Berlin became a hub for prostitution, with up to 100,000 prostitutes nightly, including child prostitutes advertised in newspapers. Homosexual, lesbian, and transsexual bars thrived, alongside a booming porn industry. Drug use was rampant, with cocaine readily available.
Magnus Hirschfeld, a homosexual Jew, founded the Institute of Sexual Research, which developed a system categorizing 64 genders and coining "transvestite" and "transsexual." Art, music, and film were overtaken by sexual themes and anti-authoritarianism. Jews were perceived as overrepresented in politics, the press, the arts, and the sex industry, despite comprising less than 1% of the population. The Weimar Republic was often called the "Juden Republic." After Hitler's rise, homosexual bars were shut down, and Hirschfeld's institute was pillaged, with his books among the first burned by the National Socialists.