Did WW1 cause WW2 because Germany felt their economy and morale was destroyed?

In my understanding, it was due basically to the harsh reparations demanded by the League of Nations, against Germany after WWI. This caused such hardship on the German economy, that it fed Hitler's military stance by feeding on the German peoples' hardship and wounded pride.

It would have improved the chance of a lasting peace. But with Japan and Italy engaged in expansionist policies during the 1930s, there was still a chance of war. But a defeated Germany that had been treated honorably and mercifully would have not held the resentment and hatred that Hitler was able to tap into. And without Germany going to war, Japan would have been hemmed in by the USSR, USA, and Great Britain. This would have reduced the scope of a world war.

No. The sole cause of WW2 was pursuit of an absurd racial theory by the Nazi regime that ruled Germany.

Woodrow Wilson tried but France would have none of it. After WWI the French were bound and determined to make the Germans pay in blood for what the Germans had done to them. Western France was utterly wrecked. France had been bled white by the war, an entire generation had died on "Flanders Fields". They were not about to walk away from this one without getting something back. Also both France and Britain had taken out huge loans with US Banks and the US Bankers wanted their money back period. The American people were not about to use their tax dollars to pay off the debt. The other countries in the world were essentially broke.

All the countries in the world were so broke by the mid - 1930's they could barely afford to fill a German wheel barrow, with enough currency, to purchase a wiener schnitzel.