Economic Challenges

Question 1

Debt after WW1

Answer 1

Germany was greatly in debt after WW1 and struggled with paying reparations (6.6. billion pounds) demanded by TOV
* In 1923, when Germany failed to pay, French and Belgian troops
occupied Rhur and took German’s raw materials and goods as payment
* Disrupted industrial production causing the currency to collapse
* Government printed more money to pay workers on strike, but it became worthless

Question 2

Great Depression (1929)

Answer 2

• The economy in USA crashed causing US companies to lose money and increased in unemployment rates which affected Germany as USA was loaning them money
• Now US banks are pressuring German bank to repay the loans and remove their investments in Germany
• Income of Germans fell by 40% from 1929 – 1932
• Not enough money to buy basic necessities
• This resulted in homelessness, starvation, and poverty
• The coalition govt of Weimar could not decide what to do e.g.
  Chancellor Heinrich implemented measures like cutting of wages of
  civil servants but this was not supported