Economic And Social Problems 1919-24 Flashcards
How did Germany finance the war?
Increased borrowing and money printing
How much debt did the Weimar government face in 1919?
1.44 billion marks
Why could they not rise taxation or lower social spending?
Risked alienating support
What had virtually disappeared by 1921?
Unemployment
How many times higher were prices in 1920 compared to 1913?
14x higher
Why did they continue to let inflation increase?
Centre party which was in control was backed by industrialists who benefitted from short term loans
What percentage was unemployment in 1921?
1.8%
What happened in January 1922?
Germany was granted a postponement of payments
What did Germany ask for in November 1922?
A loan of 500 million gold marks and 3-4 years to stabilise its currency
Why couldn’t Germany pay reparations?
Inadequate gold reserves
Germany had lost parts of its coal reserves
Could not pay in manufactured goods
Merchant fleet confiscated
High tariffs on German goods
What did the German government do to try and afford reparations?
Print more money
How many troops were sent to the Ruhr in January 1923?
60,000
What was the French and Belgian aim in the Ruhr?
To seize the areas coal,steel and manufactured goods as reparations
What number did the amount of troops in the Ruhr grow to over the course of 1923?
100,000
Who came up with passive resistance?
Chancellor Wilhelm Cuno
What was passive resistance?
No one living in the occupied area would cooperate with the French and wages would continue while they were on strike
How many Germans were expelled from the Ruhr during the occupation?
150,000
How many Germans were shot during the occupation?
132
In May 1923 what had the output of the Ruhr fallen to?
1/5 of its pre occupation output
What were the economic results of the occupation?
Paying wages was a further drain on government finances
Tax revenue was lost
Germany had to import coal
Shortage of goods pushed prices higher
How many German marks to $1 in 15th November 1923?
4,200,000,000,000
What were the social welfare laws 1919-1922?
1919- 8hr maximum working day
1919- State health insurance extended
1919- Aid for war veterans, widows and orphans increased
1919- Youth welfare act decreed all children had a right to education
What did the social welfare laws create?
The issue of hyperinflation, printing of money was largely to pay for welfare benefits
Who were the winners of hyperinflation?
Black-marketeers
Those with debts,mortgages and loans
Enterprising businesses
Those leasing property
Foreigners
Farmers
Who were the losers of hyperinflation?
Pensioners
Owners of war bonds
Landlords
Unskilled workers
The mittelstand
The sick
Children suffered from malnutrition
