Weimar Economics Flashcards
When was the Great Depression?
1929-1932
What was German prosperity dependent on?
US loans and US prosperity
What caused the Great Depression?
Wall street crash - loss of confidence in markets - exacerbation of existing problems
What did the Great Depression cause the US to do?
begin to demand repayment of loans given to G
Examples of TGD impacting unemployment?
1929 = 1.9 mil unemployed
1932 = 5.8mil unemployed -> 1/3 of G population
these figures do not take in to account those in part-time work
How did TGD unemployment impact the people?
- their status was often bound in their jobs and incomes, losing this led to feelings of hopelessness
What did people do in order to survive this TGD mass unemployment?
- sold possessions
- did weird jobs
- approach the Church for help
- squat to avoid rent payments
- kids scavenge and join gangs to get food
- prostitution, begging, busking
Without US loans, what suffered?
industries
By what percent did production fall by 1929-32?
40%
By what percent did trade fall by 1929-32? why?
50%, the entire foreign market had suffered due to t his crisis
How many business firms closed during TGD? how many banks closed?
over 50k business firms
5 banks
By what percent did food prices decrease 1929-32?
45%
How did TGD impact agricultural workers?
- people had less money to spend on food
- domestic G goods could not compete with US farms, thus they lost their export market
What did TGD heighten the need for?
welfare
During what period had the Weimar welfare system been designed?
how many workers was it designed to cover?
for how long?
what did this mean?
the Golden Years
800k for a few months
this meant that the system could not cope with millions being unemployed for numerous years
Why was it difficult for the government to spend money on welfare during TGD?
decreased tax revenue
What impact did TGD have on the image of democracy?
worsened it - seen as leading to 2 economic catastrophes within a single decade
How did Stresemann’s policies impact the G economy?
- slight improvements, ultimate failure
How did Hitler exploit TGD? what did he present it as? what was his supposed solution? why? what did this view align with?
- presented as an imbalance of power - GB and US too powerful
- answer was to claim more last in the East
- would provide more land and materials
- Hitler’s social Darwinistic view that strong nations have the right to dominate the weak ones
How did TGD cause a rise in communist activity?
- demands rose for a focus on the needs and wellbeing of workers rather than big businesses
- rent strikes were organised
- the Red Front defended people from police and bailiffs attempting to seize their property or evict them from their homes
- threat of revolution rising across G
What did the government cut in response to TGD? example?
civil service and government wages
1930-32, civil service wages decreased by 20%
During TGD, what did Muller refuse to do as chancellor? what did this cause?
refused to cut welfare - coalition collapsed
What did Bruning force? how?
what did this cause?
what did it protect G from?
what did it help with?
- forced welfare cuts via A48
- caused huge increase in poverty - ‘Hunger Chancellor’
- protected G from renewed inflation
- helped with the long-term aim of entirely cancelling reparations
What caused the Hoover Moratorium? when was it?
- G proving its inability to pay reparations
- June 1931
