Well actually one need to see this the other way around : the Versailles treaty forbade Germany to have military power (only 100000 man, no tank, no artillery and no plane - even though they managed to break it via the treaty of Rapallo). Consequently they didn't have to invest a lot in their military and could take benefit of the "peace dividend" and improve significantly their economy. On the other side, France, while having half of Germany population and economy, had to keep a strong military in order to preserve the status in Europe.BTW, it's interesting that France had military superiority over Germany (or at least was believed to have this) even though it was three times less industrialized than Germany was in a total sense in 1938. Versailles must have really screwed over Germany hard.
As Etienne Mantoux showed in "The Carthaginian Peace or the Economic Consequences of Mr. Keynes ", the German started their massive rearmament in 1933 by investing annually seven times what they should have paid annually as WWI reparation. They were able to profit from their strong (and not impacted by WWI) economy while the French one was hampered by the WWI destruction and the weight of their military.
So technically French had military superiority (at least in numbers) but it was from more than 20 years investing, using WWI technology and only a small number of very good technology equipment (S35, B1bis, Dewoitine 520) while the German had only very recent equipment (less than 7 years).
So actually, I would say the Versailles treaty did not screw over Germany very hard (see World War I reparations - Wikipedia )