Economic problems facing the Weimar republic Flashcards
1
Q
What happened in 1923?
A
- Germany couldn’t pay off its reparations.
- France decided to take its resources instead, so they occupied the Ruhr, the industrial heartland of Germany.
- This gave them access to Germany’s iron and coal reserves.
2
Q
What did France taking over Germany’s economic heartland lead to?
A
- A huge strike in the Ruhr.
- Germans did not want to work for the French.
- Encouraged to stay on strike by government printing more money, this lead to the economy going into hyperinflation.
3
Q
What is hyperinflation?
A
When production cannot keep up with the amount of money in circulation, money keeps loosing its value.
4
Q
What is the strike from the Ruhr known as ?
A
Passive resistance.
5
Q
Name some of the consequences of hyperinflation?
A
- Germany’s currency became worthless, nobody wanted to trade with Germany, so shortages of goods and food got worse.
- Bank savings became worthless, the hardest hit were the middle class as they were the ones with savings.
6
Q
When was the peak of hyperinflation?
A
ovember 1923.
7
Q
When was the peak of hyperinflation?
A
November 1923.
8
Q
How much did an egg cost in 1918 compared to in November 1923?
A
In 1918 an egg cost 1/4 of a mark and in November 1923 it cost 80 million marks.
9
Q
How much did a loaf of bread cost in 1918 compared to in November 1923?
A
In 1918 a loaf of bread cost 0.6 German marks and in November 1923 a loaf of bread cost 20 billion German marks.
