Hyperinflation in Weimar Flashcards
What was the economic problems during the war?
Germany had used all the gold reserves in the war and kept printing more money
June 1914, 6,300 million marks - December 1918, 33,000 million marks
Owed 150 billion marks it borrowed during the war
How many printing presses and firms were there, what were its effects?
150 firms, 2,000 printing presses
Severe inflation
Disrupted European Trade
20% reduction in farm production
How did the Government attempt to help social welfare?
Länder and Federal Government gave payments and pensions to those affected by the war
1.5 million disabled veterans in 1920
10% of the population receiving welfare payments and poor relief
How would social welfare be affected at the height of the crisis in Nov 1923?
The payments given would become useless due to severe inflation
768,000 disabled veterans left
420,000 war widows left
How would the Treaty of Versailles affect the situation?
France would feel that Germany was dodging payments, complained everyone was going through economic hardship
Printing more money allowed for first few payments to be made
Until 1924 the German paid in Kind
What was the London Ultimatum?
1922 the allies had decided that the Germans had been behind on payments
If payments were not made then allies would occupy the Ruhr
The Ruhr was vital to the economy, lots of coal and industry was present there
When and who would occupy the Ruhr?
Jan 1923
- French and Belgium troops
How would the Germans react to the occupation of the Ruhr?
Payments were cut to Belgium and France
Workers were told to passively resist, not accept orders and strike
Government paid the workers who passively resisted - added to hyperinflation
Beer Hall Putsch was heavily in protest to the Ruhr and showed right wing agitation
Name some key effects of hyperinflation?
750,000 govt. employees lost their jobs
Some people had their debts wiped (positive)
Middle class suffered - savings and pensions worthless
Poor’s wages were heavily affected
Black market established, mostly accessible to the rich
Barter was used instead of money
What was the increase in Newspaper prices?
May 1922 - 1 Mark
Sept 1923 - 100,000 marks
Nov 1923 - 700 billion marks
When was a Governmental change made, what did they grant?
August 1923 Government collapsed
Replaced by Gustav Stresemann of the DVP as chancellor (100 days, then 6 years as foreign minister)
10th August emergency decree, allowed for decrees to be made without Reichstag meetings
