The Challenges Of 1923 Flashcards
What was the first inflation Germany experienced?
- it borrowed a lot of money during WW1 but could not repay it
- reperations where 100 million per year and overall 6,600 million
- inflation began as the German government tried to print more money but this just worsened it
- France invades the Ruhr as Germany can not pay reparations
Elaborate on the French occupation of the Ruhr, 1923.
- occupation by French and German troops in January 1923
- French did it as they needed the reparations to pay back US and same for Belgium
How did the Germans in the Ruhr respond to the occupation ?
- passive resistance
- it did sour as the Germans carried out industrial sabotage
- they went on strike as protest
- some protestors set fire to factories or flooded mines so they could not be worked
- this led to deaths but more resistance
What was the result of the occupation ?
- United Germans due to their hatred is France+Belgium
- German government printed money to pay their wages although they where not working
- strike meant fewer goods got produced
- extra money being printed+ the lack of produce turned inflation into hyperinflation
Why was there hyperinflation?
The German government printed money to pay the workers wages although they didn’t work
They didn’t produce anything which meant both of these lead to hyperinflation
What did hyperinflation cause ?
-People on fixed income found themselves penniless
- people blamed the Weimar politics and was yet another humiliation
Who did it benefit ?
- businessmen who had borrowed money from the backs now able to pay of debts
- serious food shortages led to rise in price of food benefiting farm owners
- foreigners in Germany now had a massive advantage
When, who and how was hyperinflation fixed ?
When- summer 1923
Who- Gustav Stresemann
How- steadily reintroduced the new currency RETENMARK and loans from the US enabled for economic recovery
