Weimar - Economy

Question 1

Key Problems post WW1

Answer 1

48% of Iron production lost
16% of Coal prodcution lost
12% of the poplation lost
National Debt high - 144 million marks
Low FDI
Capital shortages
£6.6 billion reparations
7% unemployment

Question 2

Causes of Hyperinflation (1920- 23)

Answer 2

Quantitative Easing - in order to pay for reparations

Question 3

Occupation of the Ruhr (1922)

Answer 3

60,000 french troops occupy the Ruhr as Germany were not making reparation payments.

Question 4

Effects of Hyperinflation (1923)

Answer 4

Only 6% growth between 1913-29
Export trade increased - WPIDEC
Debt was easily paid off
Middle Class lost savings - resented the Republic

Question 5

Solution of Hyperinflation (1923)

Answer 5

Policy of fulfilment ended Ruhr Occupation in 1925 as Germany would resume reparations
Public spending cuts resoved huge Govt. debt eg. 50% civil servant pay cuts + benefits reduced
The Rentenmark replaced the worthless reichsmark, fixed at the 1913 gold mark rate.

Question 6

Dawes Plan (1924)

Answer 6

Germany recieved a loan of 800 million gold marks to begin cyclical reparation scheme. (Britain and France owed USA money).

Question 7

Effects of the Dawes Plan (1924)

Answer 7

By late 1920s, German GDP had returned to 1913 levels.
The German Economy attracted further investment as it was quickly growing.
Industrial production doubled 1923-28

Question 8

Improved living stanards

Answer 8

8hr working day
2.8 million homes built 1919-32.
Welfare spending was 60% greater in 1929 than 1913.
1932 wages were 30% higher than 1922

Question 9

Worsening living standards stats(1920s)

Answer 9

2 million unemployment in 1926
1 million house shortage in 1923
293,000 Germans died in 1918 due to starvation and hypothermia.
Mittelstand lost their savings in the Hyperinflation (1923)

Question 10

Stresseman’s Successes

Answer 10

1924 - Dawes Plan - 800 million mark loan
1925 - French withdraw from the Ruhr
1925 - Locarno Pact
1926 - Germany join LoN
1926 - Treaty of Berlin
1926 - Kellogg-Briand Pact
1929 - Young Plan

Question 11

Young Plan (1929)

Answer 11

Reduced the intial reparation amount to £1.85bn, 1/4 of the original amount.

Question 12

Golden Years (1925-29) ?

Answer 12

Labour relations were strained with large firms trying to keep wages down
Loss of international trade - USA imposed tariffs, Britian traded with her Empire.
Only achieved a budget surplus in 1926.
German Farmers failed to modernise - not internationally competitive
Unemployment was 1.9 million in 1929

Question 13

Complusory Arbitration (1924)

Answer 13

All industrial debate must be resolved via negociation.

Question 14

Causes of the Great Depression (1929)

Answer 14

Wall Street Crash - huge loss of confidence
US loans recalled

Question 15

Effects of the Great Depression

Answer 15

Unemployment rose - 1.9mil (1929) to 5.8 mil (1932)
Exports fell - 55% (1929-32)
5 major banks collapsed
State Benefits were reduced - 15% recieved nothing

Question 16

Brunning’s Economic Policy

Answer 16

Hoover Moratorium suspended reparations for one year
Started small public work schemes in 1931
Bruning wanted to worsen the economic crisis to attract international sympathy
Lausanne Conference (1932) suspended reparations
Bruning made large spending cuts eg. benefits