Germany- Economy till 1923

Question 1

what problems did the german economy by 1919

Answer 1

i) 16% decline in coal production, 13% decline in arable agriculture, 48% loss of iron ore
ii) cost of reperations (£6600 million in 1921)
iii) growing increase in prices
iv) increase of national debt to 1.4 billion marks in 1919 compared to 5000 million in 1914

Question 2

what evidence is there that German economy was not performing as poorly as many other European countries?​

Answer 2

unemployment rates were extremely low

Question 3

why didnt the government increase taxes to help pay debt

Answer 3

would risk alienating support for new republic as anti-republican parties would claim money being given to allies

Question 4

why didnt the government reduce spending to help pay debt

Answer 4

civilians needed payment

Question 5

why did inflation go unchecked

Answer 5

as the coalition governmetn led by Fehrenbach of the ZP which was supported by many industrialists who benefitted from inflation by taking short term loans to expand business

Question 6

who became chancellor in 1921

Answer 6

Joseph Wirth

Question 7

how much of a loan did Germany ask for in Nov. 1922

Answer 7

loan of 500 million gold marks

Question 8

what did germany do to pay back reparations and what did this cause

Answer 8

print more money, meaning the mark had less and less value leading to hyperinflation

Question 9

why was Maynard Keynes highly critical of demand for 6.6 billion

Answer 9

said it would damage Allies as well as germany

Question 10

what are long term causes of Great Inflation

Answer 10

i) by end of 1918 only 16% of war expenditure raised by taxation, 84% borrowed

Question 11

medium term causes of Great Inflation

Answer 11

adopting policy of ‘deficit financing’ in belief it would:
i) give people more money to spend
ii) overcome problems of demobilising millions of returning troops
iii) cover public cost of public spending on extensive welfare

Question 12

short term causes of Great inflation

Answer 12

French and Belgian troops took Ruhr

Question 13

who’s government led policy of ‘passive resistance’ and what was it

Answer 13

Cuno’s gov. It was urging workers to strike and refuse to cooperate with French authorities

Question 14

who’s coalition government found a response to money in circulation

Answer 14

Stressemann

Question 15

how many times higher was inflation in 1920 than 1913

Answer 15

14x

Question 16

How large was the military force that was sent to take the Ruhr

Answer 16

60k men

Question 17

What % of German coal did the Ruhr account for

Answer 17

85%

Question 18

By 1923 how many Franco-Belgian troops were in the Ruhr

Answer 18

100k

Question 19

What was the German response to the Ruhr invasion

Answer 19

Cut all reparation payments and passive resistance

Question 20

How did the French respond to passive resistance

Answer 20

150k Germans expelled from area and another 132 Germans shot in time of occupation

Question 21

What were the economic impacts of the occupation of the Ruhr

Answer 21

i) paying workers was drain of gov. resources
ii) tax revenue was lost from the companies
iii) had to pay more to import coal
iv) shortage of goods pushed prices up further

Question 22

the combined costs of passive resistance was how much compared to cost of reparations

Answer 22

double

Question 23

how did the price of bread change

Answer 23

Jan 1923- kilo cost 163 marks
October- 9 million
19 November- 233 billion

Question 24

how did the value of american dollars to one mark change over time

Answer 24

1914= 4.2
15 November 1923= 4.2 billion

Question 25

who’s aid became government responsibility in 1919

Answer 25

veterans incapable of working due to injury

Question 26

who were the winners of hyperinflation

Answer 26

black marketers, business people who took out loans, owners of foreign exchange, Hugo Stinnes (able to build 150 newspapers and magazines)

Question 27

how much of german industry did Stinnes own by end of 1923

Answer 27

20%

Question 28

in the year 1922, what was the mortality rate in towns with over 100k people

Answer 28

13.4/ thousand inhabitants