French Occupation of the Ruhr Flashcards
French Occupation of the Ruhr
Happened in 1923 when Germany failed to make reparation payments. The Ruhr was an important industrial region of Germany
Impact of the Ruhr
As Germany could not respond with force as its military was too weak, the German government ordered workers to resist occupation using passive resistance. Workers in the Ruhr went on strike and refused to assist French occupiers.
Inflation
Much of Germany’s raw materials were located in the Ruhr, rise in prices (inflation) due to shortage of goods and raw materials
Hyperinflation
The government promised to pay the workers on strike which resulted in the government printing money which further fueled rising prices. People were unemployed hence did not pay taxes
Impact of Hyperinflation
Basic necessities were difficult to afford. People’s savings became worthless as money lost its value. People were able to pay off debts and loans easier.