economic challenges Weimar Flashcards
what was the economy like straight after WW1?
suffering from inflation, mark virtually worthless, people starving-rations,substantial war debt, low standard of living
why was there inflation after WW1?
gov spent all gold reserves on war, printing more money
how many marks were in circulation in 1914 compared to 1918?
6,300 million -1914
33,000 million -1918
what did the printing of more money cause?
wages + savings lost value, prices up, people less willing to spend money, effects on trade
what had happened to industrial output during the war?
almost halved
how did the loss of agricultural and farm land from TOV affect economy?
reduced productivity, raw materials, places to produce goods,slowed economy + trade
what drove up the number of unemployed after the war?
economic downturn, ending of war production and soldiers leaving army
why was social welfare a problem after the war?
loans given to help those leaving army, pension payments for widows, wounded + orphans, made gov go into debt
how much did the gov owe by 1918?
about 150 billion marks
what policy put the gov even deeper into debt?
reparations
how did Germany try to meet payments?
using borrowing and printing money
what were reparations payed in until 1924?
in kind/materials
what was the result of the French occupation of the Ruhr in 1923?
gov didnt pay reparations to France, workers told to use passive resistance, gov still had to pay workers, no productivity, had to print more money, hyperinflation
how did the price of newspapers change during hyperinflation?
may 1922 - 1 mark
sept 1923 - 100,000 marks
nov 1923- 700 billion marks
what increased in popularity because of hyperinflation?
bartering and the black market
what did the Emergency Decree allow Stresemann to do?
make policies and decisions without impute of Reichstag, quickly react and curb economic issues
when was the Rentenmark introduced?
Oct 1923
what were the effects of the Rentenmark?
restored faith in Germany currency at home and abroad, prices settled
what else did the gov oversee to stabilise the currency?
controlling of rents, waged + prices
when was the Reichsmark introduced?
August 1924
how were cartels used?
fixed prices so stabilised economy
what were worker empolyer relationships like throughout the Weimar period?
significant levels of disputes, workers pressed for better conditions, owners tried to cut wages + extended hours, strikes common
how did the League of Nations help German trade?
increased trust and investment in economy, Germany had steel and chemicals other countries needed,
what were German exports like in 1926 and 1929?
1926 back to 1913 levels of 10 billion marks
1929 34% higher than 1913 levels
why was gov support a bad basis for the economy?
gov relied on foreign loans, borrowed + spent heavily
subsidised industries and spent on welfare, economy in precarious position
what was the spiralling effect of the Wall Street Crash?
businesses sell fewer goods, lay off staff, unemployment rises, less money to spend, less money in economy, bankruptcies etc etc
how many major banks had to close during the Great Depression?
5
what happened to industrial production, unemployment and wages during the GD?
production - 1932 half 1928 levels
unemployment- rose, 6.1 million by end
wages fell 20-30%
why did the government fail to deal with the Depression?
parties arguing and not cooperating, could not make decisions or act quickly
what policies did Bruning put in place by gov by decree as a response to the GD?
cuts in gov spending, wage cuts, higher taxes
what did Brunings policies bring?
deflation without devaluing the currency
what did the GD make clear to other countries?
Germany couldn’t pay reparations
what did Von Papen introduce?
tax concessions, subsidies for businesses that created jobs + produced some economic improvement
what did the Hoover Moratorium do?
suspended need for Germany to pay back loans or interest on them for a year
how much did prices rise on average between 1914 and 1918?
200%
how much did Germany have to pay in reparations?
6.6 billion
what territories did Germany lose under Versailles that were rich in raw materials?
Saar and Alsace-Lorraine
approx how many soldiers left the army in 1919?
6 million
how many people were unemployed Feb 1919?
1.1 million people, 7% workforce
what was Notgeld?
emergency money independent of the mark, issued by local govs
what was the good thing about hyperinflation and debt for the gov?
could pay all its wartime debt off as it became worthless
what did trade fall by between 1928 and 32?
55%
what was the RM500 million emergency fund under Schleicher?
used to employ people to carry out repair work, road and canal maintenance and land improvement schemes
