Economic crises and government response, 1918-23

Question 1

inflation

Answer 1

Economic downturn, end of war production and soldiers leaving army increased number of unemployed so employers
offered lower wages.

Question 2

social welfare

Answer 2

After war, government set up retraining schemes for soldiers, provided loans and set up pensions for the wounded, widows or orphans.
- Liberal government attempted to make adequate provision, with national committees to oversee care in the Länder.

Question 3

how many people did the government support

Answer 3

• Government supported 1,537,000 disabled veterans. 10% of population received federal welfare payments.
• Government had to go into debt to make these payments.

Question 4

debt and reparations

Answer 4

Borrowed heavily during war. ToV added to debt. Government continued borrowing to make ToV payments and printed more money. If they didn’t print, they would be unable to make any payments.

• From 1921, Germany entangled in negotiations with allies on how much to pay.
• Until 1924, reparations were paid in kind (eg. coal, wood etc)

Question 5

Germany’s failure of reparations

Answer 5

• January 1923: Germany failed to deliver full reparation.
• 1921: The London Ultimatum of the Allies: if payments were not made the Allies would occupy the Ruhr (had coal and industries, so was
  vital to German economy)

Question 6

occupation of the ruhr

Answer 6

• 1923: French occupied with help of Belgian troops. Government instantly stopped all reparation payments to France, told German officials
  to not accept orders from non-Germans and urged Ruhr workers on passive resistance (working slowly, sabotage etc)

Question 7

French actions in Ruhr

Answer 7

• French then set up border and cut off Ruhr from rest of Germany, patrolled border with armed forces and took over postal and telegraph services. Brought own workers to solve worker resistance.
  Occupiers were guilt of callous disregard of workers’ living conditions, provided little food and shelter, committed murder and rape.

Question 8

negotiations with France

Answer 8

Neither France or Germany benefitted. 1923: new German coalition called stop to passive resistance and began negotiations with France.
- France was convinced Germany was deliberately avoiding payments.

Question 9

hyperinflation

Answer 9

Escalated by Ruhr crisis
- Prices increased several times a day.
- People relied increasingly on barter and the black market, but more people
relied on the black market so it could not supply for everyone and prices
rose.

Question 10

black market

Answer 10

Economy was doing badly and the government was floundering but black
market made huge profits

Question 11

emergency money

Answer 11

Notgeld

Question 12

effect of hyperinflation on government

Answer 12

• Government cut back on staff, social welfare lost value

Question 13

a change in government

Answer 13

• August 1923: Crisis at its worst
• Government collapsed and new coalition with Gustav Stresemann as
  chancellor.

Question 14

The Emergency Decree

Answer 14

10 August: The Emergency Decree, gave government powers that included
postponing Reichstag meetings and governing by decree.
- New coalition used emergency decrees to avoid decision making in
Reichstag, so they could act more rapidly and decisively

Question 15

Marks to a $ in April 1919

Answer 15

12

Question 16

Marks to a $ in December 1923

Answer 16

4,200,000,000,000