Chapter 3- economic and social problems in Germany Flashcards
Weimar debt in 1919
1.44 billion marks
what surprising thing happened despite rising debt
unemployment had virtually disappeared by 1921
Evidence inflation was beneficial
unemployment was down to 1.8% in 1921 as opposed to 17% from great britain
Investment was encouraged, especially from USA
who led the 1920 coalition and what party dominated it
Konstantin Fehrenbach
centre party dominated which as supported by German industrialists
how much were reparations and what did this cause
6.6 billion US dollars or 132 billion gold marks
Led to a political crisis, Fehrenbach resigning and Joseph Wirth becoming chancellor
Who replaced Fehrenbach
Joseph Wirth in 1921
Why did Fehrenbach’s government collapse
Reparations commission declared germany was to pay 6.6b US dollars in reparations
Fehrenbach and his cabinet resigned out of protest
What did the reparations commission grant in Jan 1922 and Why
Postponed the Jan and Feb installments of reparations due to Germany’s economic struggle
How were resources a problem for reparation payments
germany didnt have enough gold reserves to pay for the reparations in gold
they lost natural resources in land due to treaty of versailles
How did Germany respond to the economic crisis
printed more money
What did the excess of printed money lead to
the value of the mark fell, inflation went up
led to hyperinflation
How many men did the French and Belgians send into the Ruhr
60000 in Jan 1923
By end of 1923, 100000
Why did the French go into the Ruhr
to force germany to comply with TOV
Why was Cuno made chancellor in 1923
Ebert thought his business expertise would help him fix the German economy
How many Germans were shot during the occupation of the Ruhr
132
including a 7 year old boy
Where did Germany get coal while the French were in the Ruhr
internationally
they had to import it which was expensive
price of bread 1923
January- 1kg cost 163 marks
November- 1k cost 233 billion marks
Most common crime in 1923
theft
Hugo stinnes
winner of hyperinflation
business over of German-Luxemburg mining company and Rhine electric company
Also deputy in DNVP
he was able to raise large bank loans and came out with an industrial empire
Winners of hyperinflation
-Landlords with unfixed rent (they could change rent)
-farmers (they had the product and demand was high)
-Black marketers who sold food for inflated prices
-People in debt
Losers of hyperinflation
-Pensioners and war widows
-Landlords with fixed rent
-Mittelstand (had to pay disproportionate taxes)
-the sick (medical care inflated)
