ECONOMIC AND SOCIAL PROBLEMS IN GERMANY 1919-24

Question 1

Why did the new Weimar Republic face financial debt?

Answer 1

This is partly due to the legacy of the war as wartime governments had to finance the war effort by borrowing and by printing more money

Question 2

How did the debt grow?

Answer 2

The value of German currency declined

Question 3

Why couldn’t the government reduce expenditure and raise tax?

Answer 3

It would have been highly unpopular and risked alienating support for the new Republic taxes were not increased and spending was increased

Question 4

What did governments continue to do?

Answer 4

Print more money and to borrow more

Question 5

What did printing more money lead to?

Answer 5

Inflation to rise between 1919-1920

Question 6

How did inflation benefit some?

Answer 6

Many politicians and businessman thought inflation was beneficial as its stimulated investment and economic growth and government debt became less of a burden.
The devaluation of the mark that Germany is exports became cheaper and foreign trade boomed unemployment was kept low.

Question 7

What was the level of reparations set at in 1921?

Answer 7

£6.6 billion to be paid in annual instalments

Question 8

What did the confirmation of reparations cause politically?

Answer 8

Another political crisis in Germany and led to the resignation of Fehrenbach govt
Bitterly divided

Question 9

What did reparations do to the German economy in 1922?

Answer 9

Exacerbated Germany’s debt and inflation German governments
in 1922 try to negotiate a suspension of reparation payments for three years but the French would not agree

Question 10

What did the Franco-Belgian occupation of the cause?

Answer 10

Inflation in Germany to spiral out of control and reach the level of hyper inflation in October and November 1923

Question 11

What happened in January 1923?

Answer 11

French and Belgium forces occupied Germany’s main industrial area in the ruhr valley to extract reparation payments in the form of goods

Question 12

What policy did the Kouno government declare?

Answer 12

Policy of passive resistance to the occupation
so workers in the area went on strike the wages of striking workers were paid by the government

Question 13

What happened to tax revenue for the government?

Answer 13

It was reduced

Question 14

How was the supply of any goods in Germany?

Answer 14

It was in short supply further increasing prices

Question 15

What did the government print to cover its debt?

Answer 15

More money

Question 16

Under the Weimar Constitution, what did every German citizen have the right to?

Answer 16

Work or welfare

Question 17

What was the impact of the government extending the welfare system?

Answer 17

Put huge costs and placed an additional burden on the governments finances
large proportion of the additional money printed which led type inflation was to pay for welfare benefits

Question 18

Who were the winners of hyper inflation?

Answer 18

Blackmarketeers
those with debts, mortgages and loans
enterprising business people who borrowed them repaid when the currency devalued
Farmers
people who had foreign currency

Question 19

Who are the losers of hyper inflation?

Answer 19

Pensioners including war widows
those who have bought war bonds
landlords are fixed rent properties and skilled workers
small business owners
the long-term sick as a medical care rose many experienced malnutrition