Ruhr Crisis And Hyperinflation Flashcards
In January 1923, how did France and Belgium react?
They invaded the Ruhr with 60,000 troops
Why did they occupy the Ruhr?
It’s full of factories and mines as well as having resources that could replace the unpaid reparations (80% of iron/coal/steel)
How did the Germans react?
Passive Resistance: refusing to help with legal requirements by non-violent means
How did the French respond?
They sent in French workers and arrested the leaders of the strikes and the German police (150,000 expelled, 132 Germans shot and killed)
Why did this cause the Weimar Republic to become unpopular?
They didn’t do anything to stop the invasion making the gov look weak and as traitors.
How did this affect German industry?
Output rapidly decreased, meaning prices rose and workers demanded higher wages, leaving the gov with hardly any money.
What did the government do?
They bought lots of coal from overseas and printed more money, causing prices to increase and leading to hyperinflation.
Evidence of hyperinflation?
Bread prices:
1919 = I mark
1922 = 200 marks
1923 = 200billion marks
Why did imports dry up?
German currency became worthless and so it wasn’t accepted.
What practical problems did hyperinflation cause people?
- Carried money in wheelbarrows
- Workers paid twice a day
- People resorted to bartering
Why was the middle class affected to most?
Their savings in bank accounts, insurance policies or pensions became worthless
What did Germany announce in 1922?
They couldn’t/wouldn’t pay reparations for 3 years
