Weimar Economy

Question 1

June 1919

Answer 1

Weimar government accept the conditions of the Treaty of Versailles

Question 2

April 1921

Answer 2

Allies fix reparation payments at £6.6 billion

Question 3

January 1923

Answer 3

French and Belgian troops invade the Ruhr after Germany failed to pay reparations

Question 4

November 1923

Answer 4

Introduction of Rentenmark to help end hyperinflation crisis after value of mark falls rapidly

Question 5

April 1924

Answer 5

Dawes Plan agreed to lower German reparation burden on the economy

Question 6

German Agriculture problems

Answer 6

Suffer severe crisis due to worldwide slump in food prices

Question 7

October-December 1928

Answer 7

Ruhr lockout of workers by employers after breakdown of industrial relations

Question 8

June 1929

Answer 8

Young Plan agreed with Allies to further lower reparation burden on the economy

Question 9

October 1929

Answer 9

Wall Street Crash wipes out millions of dollars from American stock markets

Question 10

March 1930

Answer 10

Growing economic crisis causes the collapse of the German government. Bruning becomes chancellor

Question 11

How many major banks collapsed in 1932?

Answer 11

Five major banks in Germany collapse setting off a severe financial crisis. Severe cuts imposed by Bruning

Question 12

February 1932

Answer 12

Unemployment in Germany reaches 6 million

Question 13

July 1932

Answer 13

Germany ends reparation payments

Question 14

German Debt Problem

Answer 14

International debt of 144,000 million marks

Question 15

German industrial potential problems

Answer 15

Crippled by the loss of the Saarland and Upper Silesia

Question 16

German investment problem

Answer 16

Attracting foreign investment wasn’t possible due to the trade deficit and weak currency

Question 17

German reparation problems

Answer 17

Had to give 132 billion marks and 1/4 of all German exports

Question 18

Positive elements of German economy in the early 1920’s

Answer 18

Unemployment fell, this meant there were more jobs for working class as the mark devalued, so they exported more

Question 19

German War debt

Answer 19

Borrowed 150 billion marks from 1914-1918. Government raised 7 billion but this only paid the interest.
Inflation increased 200%

Question 20

How did Germany try and pay the reparations?

Answer 20

Goods such as coal

Printed money

Question 21

How did Germany lose income due to territory?

Answer 21

Lost territory like the Saar and Lorraine which were high industrial areas and so the loss of coal production went up 15% The economy was less profitable and tax revenues dropped causing high debt

Question 22

Post-War unemployment

Answer 22

6 million soldiers left the army during 1919
Unemployment was at 1.1 million which was 7% of workforce.
Women were sacked and the value of wages was less than half in 1919 compared to 1913

Question 23

December 1922

Answer 23

France and Belgium sent 60,000 troops to the Ruhr to seize the coal produced as replacement for the missing payments

Question 24

What was passive resistance?

Answer 24

German workers in the Ruhr refused to produce coal, however the French just stayed and so Germany had to print more paper money

Question 25

What was the problem with printed money?

Answer 25

Flooded Germany without a rise in the amount of goods causing inflation and destabilisation

Question 26

Economic effects from hyperinflation

Answer 26

• Mark was devalued to £200 billion marks for a dollar
• Hugo Stinnes paid off his loans and bought out all his rivals as debts were easy to be paid
• Savings became worthless (pensions)

Question 27

Social effects of hyperinflation

Answer 27

• Crime increased (mainly robbery)
• Hatred for Jews increased
• Life expectancy dropped and infant mortality raised

Question 28

Political effects from hyperinflation

Answer 28

Support for extremist parties increased

Question 29

Myths from hyperinflation

Answer 29

Not everyone suffered as loans could be paid off
It wasn’t caused by reparations, Germany had an internal debt of 144,000 million mark, also losing industrial land (Saar) and they couldn’t attract foreign investments
The mark devalued so they exported more and so there was more jobs for the working class (unemployment fell)

Question 30

What did the government do to try and solve hyperinflation?

Answer 30

Introduced the policy of fulfilment as passive resistance was too expensive, French forces left the Ruhr in 1925
Initiated deep cuts on public spending and so reduced pay of civil servants and slashed benefits
Introduced the Rentenmark, it remained stable and then the Reichmark was introduced with the same value as gold

Question 31

What did the Dawes plan do for Germany?

Answer 31

• Germany received a loan of 800 million gold marks provided mainly by the US
• USA gave Germany the right to take a payment holiday on paying back reparations
• Annual repayment amount was reduced by 1929 and over a longer period of time

Question 32

What were the consequences of the Dawes Plan?

Answer 32

Became a circle as Germany paid the French and British with US loans who then gave the money back to the US for their help in the war
By late 1920’s German GDP recovers to 1913 level and tax revenues increased causing public work schemes like urban housing and sport arenas

Question 33

How did the Dawes Plan lead to the 1929 Young Plan?

Answer 33

As the German economy grew it attracted foreign investment, especially the US. They were keen to protect their investment so increasingly committed to reducing German reparation payments

Question 34

What were the negative consequences of the Dawes Plan?

Answer 34

Germany just became reliant on the US
Many Germans (mostly right wing) didn’t want to fulfil the ToV

Question 35

In what years did industrial production double as the industry was modernised?

Answer 35

1923-1928

Question 36

Positive and negative aspects of wages and employment in Weimar Germany

Answer 36

Positive: wages increased by 30%, unemployment fell and women got more jobs
Negative: Farmers suffered, unemployment peaked at 2 million in 1926

Question 37

Positive and negative aspects of Housing in the Weimar

Answer 37

Positive: 2.8 million homes were built between 1919-1932, government spent 20x more by 1932
Negative: 1 million homes were needed in 1923

Question 38

Positive and negative aspects of health and welfare in the Weimar

Answer 38

Positive: welfare spending was 60% higher in 1929 than 1913, life expectancy improved until 1929
Negative: effects of WW1 like disease, orphans and wounded were serious in the early years

Question 39

What happened to production in the Ruhr during the Golden Years?

Answer 39

It increased by 18%

Question 40

What happened to rural debt in the Golden Years?

Answer 40

It increased by 20-30%

Question 41

Social and economic Consequences of the Great Depression from 1929-1932

Answer 41

• Huge decline in industrial production and agricultural prices
• Exports fell by 55%
• Unemployment rose from 1.8m to 5.6m
• Half of all people aged 16-30 were unemployed
• State benefits reduced with 15% receiving nothing

Question 42

Political consequences of the Great Depression

Answer 42

1928 Nazis receive 3% vote to 18% in 1930
Burning called the 1932 elections believing he’d have the most support but was disliked due to wanting abolish the welfare state and destroy trade unions