The Establishment Of The Weimar Republic, 1918-24 - Economic And Social Problems In Germany Flashcards
Why did Germany encourage inflation during the war?
It eased the burden of Germany’s debt, therefore decreasing it. The politicians had printed more money to cover costs. German politicians allowed inflation to continue unchecked
What problems did Reparations cause for Germany?
- they made repayment of huge government debt from war even more difficult
- Germany’s gold reserves were inadequate for the scale of reparations that had to be made in gold
- they lost large reserves of coal due to to territory loss, however a % of payments had to be paid in coal
- allied refused to accept manufactured goods as a form of payment
- the allies imposed tariffs on German goods
What groups in society were positively affected by hyperinflation?
- black marketeers - they bought up food stocks and sold them at inflated prices
- those in debts, loans and mortgages - they could pay off money in a worthless currency
- business people - they took new loans and repaid them once currency had devalued further
- farmers - food was in demand and money was less important to rural communities
- those leasing property on fixed rents gained as the value of rent decreased
- owners of foreign exchange
What groups in society were negatively affected by hyperinflation?
- pensioners - they relied on savings which were worthless
- landlords - they relied on fixed rents
- those who lent money to the government in war - interest payment decreased in value
- unskilled workers - their wages couldn’t keep up with the rising prices
- artisans & small business owners - the prices they charged couldn’t keep up with inflation
- the sick - the cost of medical care increased and the cost of food increased malnutrition. Diseases such as rickets and tuberculosis also increased
When the reperations report of 6.6 billion pounds were be paid,why did a political crisis happen
A political crisis occured due to the cabinet if Fehrenbach resigning in protest of these ‘unfair’ terms.He was replaced by chancellor Joseph Wirth who accepted the agreement and started the policy of fulfilment
What was the Franco-Belgian occupation of the Ruhr and when was it
This was in January 1923.Due to the Germans falling behind in their coal reperations.The French and Belgians sent a millitary force of 60,000 into the Ruhr region to seize the vast coal there
What was the response of the chancellor to the Ruhr occupation
He responded by stopping all reperations payments and ordered a ‘passive resistance’ of those in the area to not do-operate with the French/belgians
What was the response of the chancellor to the Ruhr occupation
He responded by stopping all reperations payments and ordered a ‘passive resistance’ of those in the area to not do-operate with the French/belgians
What did paramilitary troops do to stop the French effort in the Ruhr
They would secretly cross the border at night and disrupt French operations by doing things such as blowing up ships and railways
What were the economic effects of the Ruhr occupation
Paying the wages of striking workers further depleted goverment finances
Tax revenue was lost from businesses that became closed
Germany had to import coal
Shortage of goods pushed prices up
What did the rise in food prices cause
The unsettled Germans had food riots where they would loot shops.Others bartered their own possesions for essential goods
What reforms were made to employment rights by the Weimar Republic and when
1919-A law was passed limiting the working day to max 8 hours
1919-The state health insurance was extended to wives,children and the disabled
What reforms were made to employment rights by the Weimar Republic and when
1919-A law was passed limiting the working day to max 8 hours
1919-The state health insurance was extended to wives,children and the disabled
1919-Aid for war veterans incapable of working became the responsibility of goverment
1922-National Youth Welfare act decreed that all children had a right to an education
What were the cons of the new reforms to work laws
It put a huge demand on the goverment and meant less people were working and people were working less hours meaning that less money was being made for the country to repay the reprations
What were the cons of the new reforms to work laws
It put a huge demand on the goverment and meant less people were working and people were working less hours meaning that less money was being made for the country to repay the reparations
