Chapter 3 (NOT FINAL) Flashcards
How did Germany finance its war effort in World War One?
Borrowing and printing more money - 82% was borrowed.
How much debt was the new Weimar government faced with in 1919?
1.44 billion marks
How much higher were prices in 1920 than in 1913?
14 times higher
What was the level of unemployment in Germany by 1921?
1.8%
What was the level of unemployment in Great Britain by 1921?
17%
Why did many in the Centre Party allow inflation to go unchecked?
They were, and were supported by, industrialists who were expanding their businesses through taking out loans which dropped significantly when it was time to repay them.
When was the reparations bill presented to Germany?
April 1921
How long was the German government given to sign the reparations bill?
6 days
How much did the Allies demand in reparations?
£6.6 billion
When did the Reparations Commission grant a postponement of the payments?
January and February 1922
Why could Germany not increase its foreign trade?
The Allies had confiscated its entire merchant fleet and placed high tariffs on imported German goods.
How much of Germany’s GDP did the reparations bill amount to?
2%
When was the Franco-Belgium occupation of the Ruhr?
January 1923
How many troops did the French and Belgians send into the Ruhr?
60,000, rising to 100,000 over the course of 1923.
Why did the French and Belgians occupy the Ruhr?
Germany had fallen seriously behind in its reparations of coal to France by the end of 1922 and they invaded to try and force Germany to comply.
What was Germany’s response to the occupation of the Ruhr?
The Cuno government implemented a policy of passive resistance.
How did Cuno support the policy of passive resistance?
He promised to pay the wages of striking workers and provide them with goods. In order to do this the government had to print even more money, triggering the hyperinflation crisis.
By November 1923, how much was $1 worth in marks?
4.2 trillion
When was a law passed limiting the working day to 8 hours?
1919
What did the National Youth Welfare Act do and when was it passed?
Gave all children the right to an education, passed in 1922.
Who were the winners in the hyperinflation crisis?
- Black-marketeers.
- Those with debts, loans, and mortgages as they could pay them off easily.
- New businesses taking out loans.
- Renters as the real value of their rent went down.
Who were the losers in the hyperinflation crisis?
- Landlords relying on fixed rents as they could not increase them along with inflation.
- The sick since their medication payments increased and they could not afford food.
- Pensioners and those relying on state aid.
- Those with savings as they were now worthless.
When was $1 worth 4.2 trillion marks?
November 1923
When were prices 14x higher?
1920, compared with 1913.
Who implemented the policy of passive resistance?
Wilhelm Cuno’s government
What triggered the inflation crisis?
Cuno printing more and more money to fund the policy of passive resistance
What act gave all children the right to an education?
National Youth Welfare Act
