Weimar Economic Problems Flashcards
What was the unemployment rate in Germany 1921?
1.8%
What was the cause for most of the economic issues of Germany?
Treaty of Versailles, 6.6bn debt.
What did Weimar introduce policy wise?
- 1919, 8 hour working day
- 1919, State Health Insurance for families
- 1919, Aid for injured veterans.
- 1922, National Youth Welfare Act
When did the occupation of the Ruhr happen?
1923
Why did France and Belgium enter the Ruhr?
Germany did not pay the reparations in 1922.
Why could Germany not pay reparations in 1922?
After paying 2bn Gold Marks and other materials, this affected German Factories that couldn’t get raw materials.
In order to pay workers, the government printed more money.
What did the Weimar government do in response?
SPD ordered strikes and passive resistance with non-cooperation.
What did the Weimar response lead to economically?
It reduced production further and hurt the economy more, so they printed money out of desperation.
Why did Hyperinflation occur?
It happened due to the buying of foreign currency with paper marks which flooded the international market with marks.
Lead to exchange rate weakening and led to more emergency printing that lasted too long.
How did Hyperinflation affect the German people?
- People were paid by the hour
- Middle-class suffered the greatest - proportional to income savings disappeared overnight.
- Pensioners on fixed incomes lost all wealth
What did the Weimar do in response to hyperinflation?
Gustav Stresseman ordered end of resistance and got workers back to work.
What new currency did the German government implement?
They introduced the Rentenmark, backed by American gold deposits.
What plan was agreed in 1924?
Dawes Plan (1924) was agreed on as US banks loaned Germany billions at good rates, boost economy and allow it to grow.
When did the French troops leave?
1925
