1919-1923

Question 1

Give a quick background to Hyperinflation

Answer 1

• during world war one; government paid bills by printing more bank notes
• reperations to be paid in gold
• not enough goods or food to buy
• prices rose while value fell
• this was inflation

Question 2

What did rising prices mean?

Answer 2

• demand for higher wages
• goods cost more to produce
• prices go up to be able to pay for wage increases

Question 3

what was the Ruhr Invasion?

Answer 3

• £6.6 billion set for Germany in 1921
• 1922 couldn’t pay
• france didnt believe Germany - them + Belgian troops marched in Jan 1923
• they claimed payments in gold + steel

Question 4

How did Germany react to the Ruhr Invasion?

Answer 4

• Passive resistance
• Workers couldnt work - so France couldnt take anything
• caused violence between germany + france
• workers on strike to be given wages; government printed more money
• Germany now producing less so price of goods went up
• result : HYPERINFLATION

Question 5

How was the war financed in Germany? (financial problems ww1)

Question 6

what was the impact + why did Germany use this to finance their war?

Question 7

financial problems after WW1 -> Why didnt the government increase taxes to pay debt caused by war?

Answer 7

• would’ve created more hatred for Weimar Government
• nobody liked taxes - especially right wing
• weimar government already in bad situation

Question 8

What did the government do instead of raising taxes after WW1?

Question 9

In what ways were inflation beneficial?

Question 10

What happened to the government when they saw they had to pay £6.6B ?

Question 11

What was the policy of fufilment?

Question 12

what did germany ask the Allies to do when they couldnt pay reperations?

Question 13

What impact did reperations have on the government and what was their response?

Question 14

How did passive resistance in the Ruhr make Germany’s financial situation worse?

Answer 14

• because they had to now pay workers wages even though there were less goods being made, so less money is made and goods are increasing prices

Question 15

Why did Passive resistance have a limited impact?

Question 16

Give a law passed in 1919 to do with welfare + advant / disadvant

Answer 16

Law passed to limit working day to max 8 hours
advantages - Good for workers
disadvantages - Less work / goods is created

Question 17

Give another law in 1919 made to improve lives?

Answer 17

• State health insurance (introduced by Bismarck)
• it was originially limited to workers in employment
• extended to include wives, daughters and disabled

Question 18

Give another law passed in 1919 aiming at war veterans?

Answer 18

• Aid for those incapable of working because of injury
• aid for widows and orphans increased

Question 19

Give a law passed in 1922 at younger people?

Answer 19

National Youth Welfare Act
- all local authorities to set up youth offices with responsibility for child protection
- all children had right to education

Question 20

Give examples of when Hyperinflation got bad - impact

Answer 20

• People carried laundry baskets filled with banknotes
• Baskets worth more money than notes
• Food shortages
• Beer cost 150 million marks
• Eggs cost 80 million marks
• Prices rise between 20%-100% each day
• Money carried in sacks or prams
• People paid using sausages or coal

Question 21

What were some benefits of Hyperinflation?

Answer 21

• People who invested
• People with mortgages - could pay quickly
• Man could afford to use inflated marks to pay for whole herd of cattle
• Value of property stayed steady
  -Workers - trade unions kept wages up
• ## industrialists + land owners could pay debts off