chapter three Flashcards
how did Britain deal with war debt after ww1 in comparison to Germany
britian enforced higher taxes and government borrowing Germany instead increased borrowing and printed more money
after war what happened to debt and the value of money
debt increased
value of money decreased
how is reparations described
as a burden
in 1919 how high was the debt facd by the Weimar Republic from the war
1.44 billion marks
what two options did Germany have to deal with this , and what were the negatives
to rise taxes
alienate support for the new Weimar Republic
reduce government spending
extended welfare benefits = larger expenditure and reduced military spending
although debt was high what had disappeared by 1921
unemployment
as inflation went unchecked prices rose
give related statistics
1918-19 doubled
1919-20 quadrupled
14x higher than prices in 1913
the government allowed inflation to go unchecked due to …
the 1920 coalition led by fehrenbach was dominated by the centre party and supported by powerful German industrialists
- they benefited by taking short term loans out for their business and repaying them at a later date hen inflation had worsened
how can inflation be seen as beneficial to some and the downside
1921 unemployment in Germany wa 1.8% compared to nearly 17% in gb
encouraged america to invest
as it went unchecked for so long it spiralled out of control
after t of v included the requirement of reparations how much did the reparations commitee set them at
132 billion gold marks
or 6.6 billion in annual instalments
when were the reparations presented too Germany
1921
what did the reparations come with
an ultimatum to accept within 6 days
what did this cause in Germany
a political crisis
how did fehrenbach and his cabinet react
resigned due to believing reparations were too high in protest
who replaced fehrenbach
Joseph wirth
what did Jospeh Wirth do
signed the treaty of Versailles and followed a policy of fulfilment
in January 1922 what did Germany request
that the January and February payments were postponed
in July 1922 what did Germany request
further postponement of repayments for the rest of the year
in November 1922 what did Germany request
a loan of 500 million gold marks and release of obligations for 3-4 years
how did the French react to the novemeber 1922 requests
suspicious and saw it as an excuse , setting for the 1923 clash between France and Germany
how did reparations strain the economy further
huge debt already made paying reps hard
germanys gold reserve were inadequate for the amount needed for reps
other reps to be paid in coal but lost large amount of coal reserves in t of v
considered paying in manufactured goods but allies deemed this as a risk to their business
how did the allies help worsen the German economy
allies hampered germanys export trade by confiscating merchant fleets and imposing high tariffs on improved goods
led to Germany printing more money
what did John Maynard Keynes say about reparations
critical of 6.6 billion requested and believed 2 billion was germanys maximum figure to be able to pay
on the contary what did peukert say in 1991 about the reparations
it was manageable for Germany as it only amounted to 2% of its gross national produce and the effects of reparations had been exaggerated and allowed foreign policy to spiral as it supported foreign policy affairs
when was the invasion of the Ruhr
January 1923
who invaded the Ruhr
French and Belgian troops
how many French and Belgian troops were sent into the ruhr originally
60,000
how many did it rise too
100,000
what was the aim of the invasion
to seize coal steel and manufactured goods as reparations
what policy was introduced
passive resistance
no co operation with the French
who introduced passive resistance
chancellor Wilhelm cuno
why could Germany not send troops into the ruhr
as it was apart of the Rhineland that was demilitarised in the t of v
what did the government do under the passive resistance approach
German workers were still paid and paramilitary , civilians organised into military form , infiltrated the French
what did the paramilitary do in the ruhr to disrupt the French
blew up railways
sank barges
destroyed bridges
what did the French do in response to the paramilitary
military courts punished mine owners miners and civil servants not complying with them
150,000 germans expelled from the area
132 germans shot including a 7 year old boy
what happened to the production rate in the ruhr while it was in control of the French
may 1923
deliveries only a third of the average in 1922
1/5 pre occupation at the ruhr
economic effects of occupation
passive resistance increased expenditure
tax revenue lost from those whose businesses closed and workers became unemployed
germany had to import coal and pay for it from limited foreign currency reserves
shortage of goods made price higher
hyperinflation crisis
caused food riots the crowds looted shops
gang of city dwellers travelled to countryside to take food from farms greeted by angry farmers
large increase in convictions of theft
barted possesions for vital basics
why were social welfare policies bought in
those were involved in the November revolution in 1918 (kaiser abdication) were motivated for a better life
large numbers of people needed support as a result of death or injury during the war
what was one of the key rights set out in the constitution
every German citizen should have the right to work or welfare
working day made a maximum of 8 hours
social welfare
1919
state health insurance system introduced by Bismarck but limited to workers in employment was extended to include wives daughters and the disabled
1919
aid for war veterans incapable of working because of injury became the responsibility of the national gov
aid for war widows and oprhans also increased
1919
national youth welfare act required all local authorities to set up youth offices with responsibility foe child protection and decreed all children had the right to an education
1922
how did social welfare effect government
printing of money largely to pay out for these social welfare benefits increasing gov expenditure
social impact of hyperinflation winners
- black marketeers that bought up foodstock and sold them at inflated prices
- those who had debts or mortgages and loans could pay off easily
- farmers , food was in high demand
- owners of foreign exchange
social impact of hyperinflation
losers
- pensioners living on state pensions
- landlords reliant on fixed rents
- the mittlesand
- the sick rise in food prices malnutrition , death rates in large cities increased
- diseases associated with dietary deficiency such as rickets and tuberculosis increased
