Challenges of 1923 Flashcards
What was hyperinflation?
Price of goods increasing dramatically
Why was there hyperinflation between 1914-1918?
- govt printed more money to pay for WW1 but didn’t have more gold -> it was bankrupt
Why was there hyperinflation between 1918-1922?
- Weimar govt printed more money for post-war shortages
- asked for longer to pay first reparations instalment
Why was there hyperinflation in Jan. 1923?
- Weimar govt printed more money to pay Ruhr strikers
- make up for loss of production in the Ruhr
What was the Invasion of the Ruhr?
- French troops invaded Ruhr to take reparations payments in form of goods
- German workers went on strike
Why was the Ruhr important to Germany?
80% of coal, iron & steel reserves were there
When did the German mark become worthless?
Nov 1923
Negative effects of hyperinflation: essentials
many couldn’t afford essentials
Negative effects of hyperinflation: wages
wages rose slower than prices
Negative effects of hyperinflation: businesses
Many businesses went bankrupt
Negative effects of hyperinflation: pensioners
people with fixed/monthly incomes suffered the most
Negative effects of hyperinflation: savings
savings worthless, middle class affected the most
Negative effects of hyperinflation: Weimar govt
people blamed weimar govt, making them more unpopular
Positive effects of hyperinflation: farmers
farmers paid more for food
Positive effects of hyperinflation: businesses
Businesses could pay off loans/mortgages
