Theme 3: Economic Challenge Flashcards
When was the invasion of Ruhr?
1923
Why did Britain and France invade?
- it was an industrial area
- had the most coal mines in Germany
Why did Germany not respond with any force to the invasion?
- TOV meant army was limited to 100,000 men
What did they do once the Ruhr was invaded?
- moved 150,000 Germans out of area who were not involved in coal industry
- people useless to them
- forced remaining people to work for them
What did the Germans do in response to being forced to work?
Went on strike
How did the French and Belgians respond to the strikes?
Fired into crowds and killed people
How did the govt respond to the events of Rhur?
- enforce the fact workers in Rhur would go on strike
- promised to continue paying them
- printed more money to be able to pay them
What was the outcome of the govt response of the Rhur?
More money in circulation- inflation
When did hyperinflation happen?
1923
Why did hyperinflation happen?
Germany owed the allies, due to TOV, to pay for damages done during war
What was the effect on hyperinflation for Germans?
- workers wages got hugger
- price of food higher than wages- people starved
Who suffered the most from hyperinflation?
- people on fixed income
- prices went up but wages stayed same- wages too low to live on
- people with savings- meant nothing
Who was better off due to hyperinflation?
- people with debt or loans- could pay off easily
- big business men took over small companies to protect them
What and when was the first economic phase?
- 1918-1923
- economic crisis and govt response
- impact if war, Rhur, hyperinflation
What and when was the second economic phase?
- 1924-1928
- policies for recovery
- Stresseman
- Dawes Plan
- Golden Years
What and when was the third economics phase?
- 1929-1932
- Great Depression
- impact and response to depression
How did living standards change for the working class?
- it rose
- max 8 hr working day- more time for leisure
- govt spending on housing and welfare increased
- welfare spending 60% higher then 1913
How did the living standards change for the middle class?
- hyperinflation wiped out savings
- established middle class worse than emerging middle class
- in 1924 standard of living for middle class 25% lower than in 1913
How did standard of living change for farmers?
- agriculture did not prosper during 1920s
- farmers affected by policies
- govt imposed tight regulations in first year of republic
How did Stresemann help with economic recovery?
- he had plans to increase economy when he backed chancellor
When did Strsemann become chancellor?
August 1933
What did Stresmann call for in September 1923?
- called for passive resistance
- policy of fulfilment
- to end French occupation of Rhur
- in return for more coal, France would leave in 1925
