1919-1923 Flashcards
1
Q
Give a quick background to Hyperinflation
A
- 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
2
Q
What did rising prices mean?
A
- demand for higher wages
- goods cost more to produce
- prices go up to be able to pay for wage increases
3
Q
what was the Ruhr Invasion?
A
- £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
4
Q
How did Germany react to the Ruhr Invasion?
A
- 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
5
Q
How was the war financed in Germany? (financial problems ww1)
A
6
Q
what was the impact + why did Germany use this to finance their war?
A
7
Q
financial problems after WW1 -> Why didnt the government increase taxes to pay debt caused by war?
A
- would’ve created more hatred for Weimar Government
- nobody liked taxes - especially right wing
- weimar government already in bad situation
8
Q
In what ways were inflation beneficial?
A
- People could pay their debts off
9
Q
What was the policy of fufilment?
A
Stresemann’s policy where he aimed to improve international relations by attempting to fulfil the terms of TOV
10
Q
What impact did reperations have on the government ?
A
strained economic system
11
Q
How did passive resistance in the Ruhr make Germany’s financial situation worse?
A
- 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
12
Q
Why did Passive resistance have a limited impact?
A
Because the government had to now pay the workers wages with less resources and the french brought in their own workers to help retrieve resources
13
Q
Give a law passed in 1919 to do with welfare + advant / disadvant
A
Law passed to limit working day to max 8 hours
advantages - Good for workers
disadvantages - Less work / goods is created
14
Q
Give another law in 1919 made to improve lives?
A
- State health insurance (introduced by Bismarck)
- it was originially limited to workers in employment
- extended to include wives, daughters and disabled
15
Q
Give another law passed in 1919 aiming at war veterans?
A
- Aid for those incapable of working because of injury
- aid for widows and orphans increased
16
Q
Give a law passed in 1922 at younger people?
A
National Youth Welfare Act
- all local authorities to set up youth offices with responsibility for child protection
- all children had right to education
17
Q
Give examples of when Hyperinflation got bad - impact
A
- 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
18
Q
What were some benefits of Hyperinflation?
A
- 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
19
Q
Who were the losers of hyperinflation?
A
- Pensioners
- People who bought war bonds
- Landlords
- Unskilled and trade workers
- Artisans ans small business owners
- Mittlestand
- sick, children
20
Q
Who was Hugo Stinnes?
A
- Ownes businesses in coal, iron, electrical industries
- Became member of DVP + represented them in Reichstag
- during inflation he used connections with Reichsbank to but competitors businesses
- Converted foreign currency from foreign business deals + paid loans and bought businesses
- 1535 conpanies + 20% of Germanies industries
21
Q
What did Stresemen do to stop hyperinflation?
A
- Appointed Hjalmar Schacht (economic expert) for advice
- Cut expenditure by cutting excess jobs in Civil service
- Helped to negotiate Dawes Plan
- Called off passive resistance
- Production resumed
- Limited new currency - Rentenmark
22
Q
Social consequences of hyperinflation
A
- Basic values changed - people less likely to save
- Demagogues created events to blame people e.g. Jews, November criminals, socialists
- Gap between poor and rich increased - resentment
- Health among elderly suffered
23
Q
Political consequences of hyperinflation
A
- stopping passive resistance seen by right wing as giving into French
- Anger led to political uprisings like Munich Putsch
- Civil servants lost jobs - right wing resented Republic further
- Distrust in democracy
24
Q
Economic consequences of hyperinflation
A
- 1924 economy started recovering
- Dawes plan meant Germany dependent on US loans
25
What was the Young plan?
- Reduce reperations to £1.8 billion and pay until 1998
26
Who replaced Cuno as Chancellor in August 1923?
- gustav stresemann
27
What three main steps did Stresemann do to control hyperinflation?
-End passive resistance
- Issue new currency
- Balance budget
28
Who became the Reich currency commissioner in 1923?
- Hjalmar Schacht
29
What happened to the number of companies going bankrupt between 1923-4
- Rose from 233 to over 6000
30
What impact did the Dawes plan have on industry?
- Industrial output grew
- More prosperous
31
What was a cartel?
- Group of companies in the same industries - to fix prices and protect profits
- Reduced competitopn and allowed more profits to be invested
32
What was compulsory arbitration and what result did it have on the number of strikes?
- Industrial disputes - Sided with the workers which led to resentment of employers to the government
33
How many people were unemployed by March 1926?
- Over 3 million
34
Who didnt gain much from the economic improvements?
- Farmers
- Mittlestand
35
What were some examples of improvement from hyperinflation
- Working days lost went from 12.35 in 1923 to 3 in 1925
- Less strikes
- 1919 budget deficit remained above 9% and went down to under 1% in 1924
- Reperations down as a % of GNP
- By 1929 - Imports = exports
36
What were the weaknesses that were superficially promising after hyperinflation?
- Agricultural prices declined after 1927 which was bad for farmers
- loans went up ro 18,000 mollion marks from foreign loans - more money needing to be paid in future
- Producing less than other countries
- Tax rose to match real hour earnings in 1925
37
Did stresemann improve German economy? If yes:
- Appointed correct people
- Cut spending
- Helped negotiate Dawes Plan which included 800 million mark loan
- Ended passive resistance
38
Did stresemann improve german economy? If no:
- Schacht was responsible for new currency + limiting amount in circulation
- Wouldve listened to advice from economists and Schacht before doing this
- Didnt support the plan at first calling it an economic armistice
39
When did the Spartacist uprising happen?
5th jan 1919
40
What happened before spartacist uprising that led to chaos and confusion
- Kaiser abdication
- German soldiers returning
- Republic set up
- Conflicting political ideologies
41
Who led Spartacist uprising?
Rosa Luxemburg and Karl Liebknecht
42
What was the aim of the spartacist uprising and what did they do?
- Communist revolution + land and industry redistribution
- Took control of key buildings in Berlin eg post office
43
Why did the Spartacist uprising fail?
- Lack of organisation from left
- Lack of support
- Friekorps
44
What were the consequences of Spartacist uprising?
- Led to increase in fear of communism
- Further devision in left wing
45
What were the weaknesses of left wing?
- Divided between SPD, USPD, new KPD
- Couldnt organise spartacist revolt or gain enough weapons
- Ebert Groener pact led to greater divisions - left wing feeling betrayed
- Spartacist revolt poorly planned
46
What was the strength of right wing and opposition during spartacist revolt?
- Freikorps brutally stopped it + efficient
- Effectibe at neutralising the threat
47
What was the left wing revolt - Red Bavaria 1919?
- 21st Feb 1919
- Right wing student shot Bavarian president Kurt Eisner
- Had been member of USPD
- Eisner about to resign, (lack of support)
- Assassination triggered shootings and USPD called for general strike
48
What happened 7th april and so on - Red Bavaria 1919?
- 7th april - independents seized power in Munich + proclaimed soviet republic
- Regular government fled
- Houses, food, cars taken from rich given to workers
- Factories to be run by joint workers councils + plans to abolish money
- Friekorps called + killed 1000 in May 1919 (White terror) - people turned to right wing
- right wing government established
49
What was the Ruhr uprising 1920?
- Communists + members of USPD planned Red Army - Seized key buildings
- Kapp putsch broke out - Communists formed army of 50,000 men
- General strike followed
- Across Ruhr - Executive Councils took over political power
- Dominated by USPD + KPD
50
What happened by 20th march - Ruhr Uprising? 1920
- Communists Controlled most of Ruhr
- Largest working class revolt 1919-1923
- Early april, Friekorps + army launched full scale offensibe against Red Army
- Over 1000 workers + 250 soldiers killed
- Convinced right wing that communism was real threat
- Ebert offered workers better working conditions
51
What was German October 1923?
- KPD and SPD formed coalitions in regional governments of Saxony and Thuringia
- Communists went further + made military preparations for communist uprisings
- Ebert sent in army to crush communists
- Regional governemts recreated without communist members
- Rushed, badly organised, lack of public support
