The Ruhr crisis & hyperinflation

Question 1

When did France invade the Ruhr?

Answer 1

1923

Question 2

Why was the Ruhr invaded by France in 1923?

Answer 2

Germany could not keep up with the money it owed France through reparations.

Question 3

Why did France choose to invade the Ruhr?

Answer 3

The Ruhr was the industrial heart of Germany, where 80% of Germany’s steel was produced, as well as other raw materials like coal. It was strategically valuable.

Question 4

Summarise the events of the Ruhr crisis.

Answer 4

• January 1923: 60,000 French and Belgian troops siezed control of all mines, factories and railways in the Ruhr.
• They believed the German workers would work for them. Instead, they went on strike and industry halted.
• The French then brought in their own workers, arresting, imprisoning and deporting the resistance leaders.
• There were huge, violent protests over the French treatment of the workers. Some French soldiers were killed. The French shot a number of demonstrators.

Question 5

Give 3 consequences of the Ruhr crisis.

Answer 5

• The invasion united the previously divided Germans against the common enemy of the French invaders.
• German industrial output fell dramatically, impacting very badly on the economy.
• The Weimar government supported the workers by printing money to pay them, which led to hyperinflation.

Question 6

What is hyperinflation?

Answer 6

Inflation which is out of control, and happens over a very short timescale - weeks/months.

Question 7

What 2 things caused the hyperinflation crisis?

Answer 7

• The £6.6bn WW1 reparations had almost bankrupted Germany.
• The Weimar government printed money to pay the striking workers’ wages during the occupation of the Ruhr.

Question 8

Give some examples of the severity of the hyperinflation in 1923.

Answer 8

• millions faced starvation and poverty
• workers had to rush to shops after they were paid; prices rose by the hour
• at one point, it cost 80 million marks for one egg, or 200 billion marks for a loaf of bread
• children played with worthless money
• some people used money as fuel, as it was cheaper than actual wood

Question 9

Hyperinflation had an impact on all members of society. Name 5 specific groups who were affected by it.

Answer 9

• workers
• pensioners
• the middle class
• the upper class
• farmers

Question 10

What effect did hyperinflation have on workers?

Answer 10

• they had few savings, so weren’t badly affected in this respect
• their wages also rose with the inflation

Question 11

What effect did hyperinflation have on pensioners?

Answer 11

• as money decreased in value, their savings and pensions became worthless
• as they couldn’t work, they couldn’t afford to heat their homes, and faced starvation

Question 12

What effect did hyperinflation have on the middle class?

Answer 12

• their savings were made worthless by inflation
• as German money was worthless, businessmen struggled to buy goods from abroad. Many became bankrupt
• the only upside was that debts could easily be paid off

Question 13

What effect did hyperinflation have on the upper class?

Answer 13

• they had solid possessions, land and foreign currency, whose value remained the same
• they were able to barter their possessions for essential goods
• inflation meant that they were even able to buy small businesses

Question 14

What effect did hyperinflation have on farmers?

Answer 14

• they came out least harmed as they could grow and eat their own food
• they could also barter their produce to obtain other goods