Economic and social issues in early Weimar Flashcards
How did the German government finance their war effort?
Borrowing
How did the German government expect to pay off their wartime debts?
By imposing reparations on the countries they thought they would defeat
Did the Germans impose massive reparations on Russia at Brest-Litovsk?
Yes
What level of debt did the new Weimar government inherit in 1919?
1.44bn marks
Had unemployment in Weimar Germany been massively reduced by 1921?
Yes (1.8%)
How far did prices rise 1918-19?
They doubled
By 1920 how many times higher were prices than 1913 levels?
14 times higher
Which Chancellor allowed prices to rise?
Fehrenbach
Why were prices allowed to rise?
It lessened the government’s debt and industrialists took out short term loans which were made cheaper by inflation
What did unchecked inflation result in?
Hyperinflation in 1923
What reparations figure did the Reparations Commission impose on Germany in 1921?
132 billion gold marks (£6.6bn)
What was the policy of the new Weimar cabinet under Chancellor Wirth?
Fulfilment…and an aim of revision (changing) of Versailles
Did Fehrenbach’s cabinet resign in protest at the level of reparations in 1921?
Yes
How had the Treaty of Versailles hindered the Germans’ ability to pay?
Coal producing areas taken away, merchant ships confiscated
How much of German GNP was £6.6bn?
2%
When did 100,000 French and Belgian troops invade the Ruhr to force reparations to be paid?
January 1923
What reaction to the Invasion of the Ruhr did Chancellor Cuno order?
Passive resistance
By how much had production in the Ruhr fallen by May 1923?
80%
The government continued to pay workers in the Ruhr but lost tax revenue. How did it respond?
Printed more money
By November 15 how many marks were needed to buy one US dollar?
4,200,000,000,000
Who was one of the winners during hyperinflation?
Businessman Hugo Stinnes ‘king of the Ruhr’
High level of spending on what exacerbated hyperinflation?
Welfare
Which groups of people were badly hit by hyperinflation?
Which groups of people were badly hit by hyperinflation? Pensioners, mittelstand, those who had lent money to the government, those with savings
Which groups of people did well out of hyperinflation?
Those with debts, big businessmen with loans, black marketeers
