Read Diana Lary p.84, Hans van de Ven p.94 and the Suzanne Pepper summary under the heading “economy” p.87 Flashcards
Describe the economic problems faced by the Nationalists during the Civil War. Ensure you include correct terminology such as income, expenditure, currency.
The Nationalists faced hyperinflation in their areas of control, with its citizens transitioning to a barter/trade economy in some areas. The value of certain currencies also fell/people lost confidence in them, increasing hyperinflation. Financial incomes thus were problematic for those who had them. Additionally, the government was running at 15% of expenditures, meaning that the government was spending more money than it had, leading to more hyperinflation.
What importance does Pepper place on the role of the economy in the outcome of the Civil War?
Pepper asserts the importance of a strong economy and how that directly translates to confidence from the people ruled by the government. The poor management of the economy reduced spending by the private sector, specifically the middle class, the main supporters of the GMD, undermining the success of government policy aimed at curbing inflation.
What were the consequences of hyperinflation? Which sectors of society were the hardest hit by hyperinflation?
Teachers, college professors, writers, journalists, government employees and students were some of the hardest hit (at least these are the examples given in the text). Their incomes were caped but hyperinflation kept the value of their work on a continuous downward spiral.
The Nationalists had received significant US aid up until 1947 and yet the economy was beset with problems. What does this suggest about the governance of the GMD? (Not in text, think for yourself - where did the money go?)
The failure of the Nationalist government to maintain its economy despite US aid up until 1947, suggests that large portions of their money was wasted in various industries or spent on the war effort.
What was the effect of the war on China’s cultural history?
The war had reduced China’s cultural output, with painters and writers giving up the profession. However, this did not stop the scroll and antiques industries from becoming more prominent.
