Economic And Social Problems In Germany Flashcards
How did the government fund the war
Large borrowing
Printing money
Expected to win and annex foes industrial areas
Why did the Germans initially print money
To pay reparations
How many men did belguim and france send to the ruhr in January 1923
60,000
How many did they later send in
10p,0p0
What was the Fran / bel aim
To take the German’s coal steel and manufactured goods, as well as speed up workers
How did the chancellor of the time reply to occupacption of the Ruhr
CHANcellow Wilheim cuno replied by ordering all workers in the area to strike, still paying their wages however by printing money
Also sent paramilitary groups to disrupt France by blowing up railways, destroying bridges and sinking barges
How did French reply to the strikes
Sent over their own men, although they were nowhere near as efficient, in MAY 1923, deliveries were a 1/3 of average in 1922
132 Germans killed by police in this time including 7yo kid
Economic effects of the occupation
Paying workers and providing goods and food
Lost tax revenue from businesses shit down
Had to import coal and pay for it with the limited foreign currency reserves
Shortage of goods pushed prices up further
Printing off more money to pay for this started hyperinflation
What was rate in January
43.2 marks - 1$
Why did politicians allow inflation to start
Suited business owners who took loans and when value went up, paid the same amount
Who were winners of hyperinflation
Farmers
People with debts, mortgages and loans
Overpricing buiseness owners
Black market sellers
Property users with fixed rents
Who were losers of hyperinflation
Pensioners
Patriotism people who leant government money in war bonds
Landlords-fixed rents
Unskilled workers
Mittlestand
Sick people
Children
What was unemployment in 1923
29.3%
How did Germany stop hyperinflation
Replace the reichsmark with the rentenmark
