Weimar: Economy

Question 1

In 1918, what was the overall German economy like?

Answer 1

The German economy was in trouble. War has hit the economy hard and the government had spent all of his gold reserves and printing more and more money.

In June 19 4 6300 million marks in circulation, increasing to 33,000 million by 1918.

Question 2

What was some of the examples that inflation had caused after the war?

Answer 2

1. 1914 = 6300 million marks -> 33000 million marks 1918
2. End of the war there were 150 printing firms with 2000 printing presses running a day to make enough bank notes. Thus wages and savings loss value. So people became less willing to spend as their wages were worth less , so was bad for trade.
3. production dropped by around 20% and industrial output had halved.

Question 3

What were the three main economic phases between 1918, and 1932

Answer 3

1. 1918 to 1923.
2. 1924 to 1928.
3. 1929 to 1932.

Question 4

How did the government try to deal with social welfare?

Answer 4

After the war, the government said retraining schemes for those who had forts in the war and gave them loans. Also set up pensions for widows and orphans. As the government was a liberal one, it made efforts to make adequate provision with national committees to oversee care in the länder.

They set up variety of programs for different groups. For example, the government looked after disabled veterans with lump sum and pensions and by 1924 the government was still supporting around 768,000 disabled veterans.

Question 5

How did the government paying for social welfare worse than the Econome?

Answer 5

Around 10% of the population were receiving federal wealth payments, so these payments has to be made by a government that had to go into debt to make them

Question 6

How much at the government owed by 1918

Answer 6

They had borrowed heavily during the war so owed about 150 billion marks

Question 7

How did the French feel about Germans reparation payment?

Answer 7

They felt the German were deliberately trying to avoid paying anything and argue. The German economy had problems besides other European countries, especially France.

Question 8

Until 1924, how has Germany been paying their reparations?

Answer 8

They have been paying their reparations in kind, for example, with coal wood and railway carriages

Question 9

Why was the German failure to deliver reparations in full by January 1923 a big problem

Answer 9

Behind preparation payments in 1921, and the allies ultimatum had been that payment should be met or the allies would occupy the Ruhr which was vital to the German economy due to colon industries.

In 1923, with the Belgium troops marched into the Ruhr.

Question 10

What had happened as a result of the French marching into the Ruhr. how did the French reply?

Answer 10

German government instantly stopped all reparation payments to France (not others) all German officials told not to accept orders from non-Germans and urge workers to carry out passive resistance

French replied by cutting the Ruhr off from Germany, by setting up a border patrolled by armed forces and tried to solve resistance by bringing in their own force of workers.

Question 11

How did the crisis in Ruhr effect hyperinflation

Answer 11

It’s spiral out of control, freeze example, a newspaper that cost one mark in May 19 22+100,000 marks by September 19 23, and 700 billion marks by November. People had to rely on battering and the black market.

Question 12

What was notgeld?

Answer 12

Like the black markets and towns, even businesses began to issue their own Notgeld or ‘ emergency money’

Question 13

What happened in August of 1923

Answer 13

The government collapsed and the new coalition government with Stresseman (Of DVP) as chancellor, benefiting from the emergency degree, which gave his government powers like postponing meetings and governing by decree itself.

Question 14

How was the ability for the new government to use emergency decrease helping?

Answer 14

It avoided tying up decision-making in the Reichstag. Using his decree, they could act quicker and more decisive than any cold in the past, as it could take decisions without the need to negotiate among various coalition members

Question 15

After August 1923, How long did the new government last? What happened to Stresseman

Answer 15

It only lost it until November. However, he continued as for minister in the next government, as he was a stabilising force.

Question 16

What was Stresseman first significant policy?

Answer 16

To regain control of money. The worthless mock was withdrawn and the Rentenark took its place in October 1923.

Question 17

Why were they objections to the new Rentemmark?

Answer 17

People who had savings objected to it, as it had such low value against one gold mark

Question 18

Who was made president of the Reichbank in 1923

Answer 18

Hjalmar Schacht

Question 19

When did the Dawes plan come into effect

Answer 19

September 1st 1924

Question 20

When did the young plan come into affect and replace the Dawes plan?

Answer 20

January 1930

Question 21

What were cartels? How did they stabilise the economy?

Answer 21

These were big businesses who formed to fix prices to help stabilise the economy. Some cartels organise themselves in association of shared interests.

They made agreements to set and control prices, providing stability because it stock prices moving a lot. It also meant they could fix higher prices than they could’ve charged if they operated separately.

Question 22

What was the biggest cartel? How did this help the chemical industry?

Answer 22

IG Forbes, set up, 1925, United chemical based cartels, that made things from dynamite to fertiliser.

By 1925, the chemical industry was producing one third more than 1913, and almost 2/3 more by 1930

Question 23

While cartels were helpful, Why was there still problems?

Answer 23

Dispute between business, owners and workers throughout Weimar period. Workers wanted better conditions and owners. Try to cut wages and strikes were common.

Question 24

What was the state arbitration?

Answer 24

Set up in October 1923, the agreement fixed working hours at eight hours a day, but left negotiated of wages to do involved. Now the government was to settle wages and any other matter on the dispute.

Question 25

How did Germany join the league of Nations help their economic recovery?

Answer 25

They were large produce of steel on chemicals and with their admission to the LON, other international agreements and German exports were back to the 1913 levels of 10 billion marks by 1926

Question 26

In the 1920s, how much of all workers were agricultural workers?

Answer 26

Between a 1/3 and 1/4

Question 27

What was the new economy built on?

Answer 27

It was built on foreign loans and the expectation they would be renewed as the world economy improved. They also heavily borrowed and spend heavily.

Subsidised, grain production and industry and spent heavily on social welfare

Question 28

What was the overall state of the public and why did they resend the idea of tax rises, even with economic recovery

Answer 28

Even with economic recovery, most ordinary people were not as well off as they had been before the war, so they paid less tax so resented tax rises

Question 29

How did the government having its own bank affect economy?

Answer 29

Help provide federal and regional funding and could help businesses for only as long as the government could keep lending the money.

Question 30

How is industrial expansion and production damaged?

Answer 30

Constant dispute between businesses and workers affecting productivity and driving wages up until 1930.

Question 31

How had unemployment figures changed from 1921 to 1933. What was this as a percentage of the workforce unemployed?

Answer 31

1921 = 346,000 unemployed, 1.8% of the workforce were unemployed

1933 = 4,804,000 unemployed, 26% of the workforce were unemployed

Question 32

How hot industrial production fallen by 1932 in comparison to 1928

Answer 32

By the end of 1932, industrial production was about half of its levels in 1928

Question 33

Why was the government unable to cope with the great depression?

Answer 33

The parties were arguing and not cooperating, and they could not make decisions or act quickly. Plus President Hindenburg was resistant to more government by emergency decree. The coalition collapsed was replaced in 1930, led by chancellor Bruning.

Question 34

What were chancellor Bruning first policies.

Answer 34

He suggested cutting government spending, wage cuts and higher taxes.

Question 35

On July 1, 1931, the Hoover moratorium was signed. What is it? How did Brunning’s new policies cause this?

Answer 35

Bruning policies had brought Germany’s depression even deeper.

It was clear they were unable to meet any reparation payments, so an international agreement suspended the need for Germany to pay back any loans or interest on them for a year.

Question 36

When was unemployment at its highest ever level?

Answer 36

In 1932

Question 37

When was Bruning replaced and what were the new chancellor’s policies?

Answer 37

He was replaced in May of 1932 by Von Papen, who introduce tax concessions and subsidies that created new jobs, and produce some economic improvement

Question 38

When was Von Papen replaced as chancellor?

Answer 38

In December of 1932 by Von Schneider

Question 39

What food did many of the poor rely on

Answer 39

Poorest food was mainly bread, potatoes and veg.

Meat was a rarity, once a week at most

Question 40

How did inflation affect the govt ability to support their standard of living schemes

Answer 40

Standard of living sharply dropped

Question 41

How did unemployment affect women

Answer 41

People scarped by through badly paid jobs with long hours.

Women often would take in home-based work with no hours, but paid by the ‘piece’, eg. Women who covered buttons with fabric may be paid for every 50 they do

Question 42

Why had the 8 hour working day (imposed in 1918) all but disappeared in 1924

Answer 42

It was still the law, but workers couldn’t afford to press for it and employers never wanted it

Question 43

What was the state of housing in Berlin in 1925 and 1929

Answer 43

With over 4 mil ppl, there were 130k lodgers and 45k who paid to sleep in a bed.

By 192, situation was hardly dif, with children often expected to give bed up to a lodger

Question 44

Why did businesses prefer to employ women

Answer 44

They were cheaper

Question 45

When was the unemployment insurance law introduced and what was it

Answer 45

July, 1927

Gave unemployment insurance to give benefit to all those not in work and not just ppl temp out of work due to sickness