Economic challenges Flashcards
By 1918, what proportion of government expenditure was raised by taxes?
16%, the other 84% was borrowed.
Why did prices go up?
Lack of consumer goods after production was so military based
How did the Weimar control inflation?
increasing taxation
cutting government spending
Why did finance minister Erzberger adopt a policy of deficit financing?
- to give people more money to spend and increased demand for goods, creating more work.
- a booming economy provided jobs for returning soldiers.
What did the Weimar do to try and pay off reparations?
printed large quantities of marks to sell them to obtain stronger currencies of other cpimtores/
By November 1923, how many marks was there to the dollar?
200,000,000,000
What happened in December 1922?
Reparations commission declared Germany to be in deficit, Poincare ordered French and Belgian troops to occupy the Ruhr.
What did Wilhelm Cuno insist to stop the French occupation of the Ruhr?
passive resistance, urging workers to go on strike. promised to keep paying them.
How did the French begin to dismantle Germany?
couldn’t collect taxes from the Ruhr.
prevented delivery of coal, forcing stocks to be imported.
