Lesson Three

Question 1

What was the Government Response to the Economic Impacts of the War?

Answer 1

In 1919 the government’s initial response to this
concerning situation, led by the finance minister Matthias Erzberger, was to reduce taxation even further. This, it was hoped, would stimulate more spending which would lead to a higher demand for goods, which in turn would lead to more jobs for returning soldiers.

Question 2

What was the impact of the hyper-inflation crisis in 1923?

Answer 2

(On Germans) A pair of shoes that cost 12 marks in 1913 cost 1,000,000 marks in the summer of 1923 and then 32,000,000,000,000 marks by that November.

Question 3

What was Weimar’s response to the French government, led by Raymond Poincaré, invading and occupying the Ruhr, Germany’s most profitable industrial region.

Answer 3

the Weimar government instructed all workers in the region to begin a campaign of‘passive resistance’ by
refusing to cooperate with or work for the occupying forces but not to openly engage in revolt against them.

Question 4

Who aided Weimar on economic recovery?

Answer 4

In August 1923 a new German coalition government, brave enough to attempt a new economic policy, was
formed under the direction of Chancellor Gustav Stresemann.

Question 5

How did the work of Gustav Stresseman save the economy?

Answer 5

1. Calling off the Policy of ‘passive resistance’ in the Ruhr- Which appeased the French and Belgian governments to adopt a more sympathetic attitude towards Germany.
2. He introduced a new currency called the
   Rentenmark. One Rentenmark replaced 1 billion marks- This stabilised inflation and helped the German people to regain their confidence in the economy. They began to deposit money in banks again.

Question 6

What was the impact of The Wall Street Crash of 1929 ?

Answer 6

When the market crashed, loans stopped being granted and American investors began demanding their immediate repayment. This loss of investment resulted in a severe increase in unemployment that rapidly rose to the height of 6.1 million by 1932.

Question 7

List two ways in which the Weimar Republic had improved living standards in its
early years

Answer 7

1. A maximum 48-hour workweek was implemented, with limitations on night-time work and a required 36-hour minimum continuous rest period per week
2. Medical insurance was offered to increasingly
   more people who could otherwise not afford it