Challanges Of 1923 Flashcards
Why was there a hyperinflation
1914 -1918 Germany printed money to pay for the First World War-it was bankrupt
1918-1922 government printed more money for post war shortages and asked for longer to pay the first reparations in 1922
January 1923 French and Belgian troops take the Ruhr to take reparations in goods and raw materials (Germany lost one of its main industrial areas)
The German workers in the Ruhr went on strike and the Weimar government had to print more money for people on strike and to replace the loss due to loss of coal steel and iron production
November 1923 German mark was worthless
Negative effects of hyperinflation
Some people couldn’t afford essentials like bread
Wages rose but not as quickly as the prices
Some businesses went bankrupt
People with fixed or monthly incomes (such as pensioners) suffered the most
Savings became worthless (effected the middle class)
People blames the Weimar government which made it even more unpopular
Workers payed twice a day as wages were worthless by lunch
Positive effects of hyperinflation
Farmers benefited as they were payed more for food
Some people and businesses could pay off loans and mortgages
Fixed rent for rooms or shops became very cheap
Foreign visitors could buy more for their money
