Weimar economy

Question 1

German’s international war debt from WW1?

Answer 1

144,000 million marks

Question 2

April 1921: Allies announce final sum of reparations:

Answer 2

£6.6 billion and 1/4 of German exports

Question 3

What happened in December 1922 that led to hyperinflation

Answer 3

France seized the Ruhr with 60,000 troops due to missed payments. German workers striked (passive resistance). Germany had to print lots of money to pay the striking workers leading to hyperinflation. The mark was at 200 billion marks to the dollar

Question 4

Who became Chancellor in August 1923

Answer 4

Gustav Stresemann

Question 5

What did Stresemann introduce

Answer 5

Policy of fulfilment to the Ruhr crisis
Deep cuts in public spending-civil servants wages cut by 50%
Introduced the rentenmark to combat hyperinflation. Reichmark introduced in 1924, pegged to value of gold.

Question 6

Dawes Plan 1924

Answer 6

Germany got loan of 800 million gold marks from US. This linked German economy to US who wanted to protect their investment.
Germany could take a payment holiday if needed

Question 7

Impact of Dawes Plan

Answer 7

German GDP recovered to its 1913 level and tax revenue was increasing. Gvt invested in public work schemes, housing (2.8 mill houses built 1919-1932), sports arenas
Made German economy reliant on USA
Industrial production double as industry modernised in 1928

Question 8

Unemployment stats

Answer 8

Remained around 1 million for most of the 20s, peaked at 2 million (10%) in 1926. Rose steeply 29-32 (1.8m - 5.6m

Question 9

Groups that benefited?

Answer 9

Working industrial class due to better standard of living, new housing built, better wages due to trade unions.
Emerging middle class paid off debt during hyperinflation

Question 10

Groups that suffered?

Answer 10

Established middle class /mittelstand as they lost their savings and status and average income decreased by 60%.
Farmers did ok in early years but suffered after 1925 due to cheap imports of foreign grain.

Question 11

1929 Young Plan

Answer 11

Reduced annual reparation repayments to £2 billion

Question 12

1929 Great Depression stats

Answer 12

Decline in industrial production & agricultural prices
Exports fell by 55% from 1929 to 1932
Unemployment rose from 1.8m in 1929 to 5.6m in 1932

Question 13

June 1931

Answer 13

3 Major German banks collapse

Question 14

Who came to power in march 1930

Answer 14

Bruning becomes chancellor