Weimar Economy

Question 1

Economic Problems after WW1

• Debt
• Industrial Potential
• Investment
• Reparations
• Unemployment

Answer 1

Economic Problems after WW1

• Debt of short term loans at 144b marks
• Industrial Potential crippled with loss of Saar and Upper Silesia
• Investment lowered due to lack of capital
• Reparations of £100m (132b marks total) monthly and 1/4 exports
• Unemployment of 6m returning soldiers, fixed with lower wages

Question 2

Hyperinflation Effects

• Investment
• Wages
• Trade

Answer 2

Hyperinflation Effects

• Investment reduced, until deal with USA
• Wages fell significantly in real value
• Trade collapsed

Question 3

Solution to Hyperinflation

• Passive Resistance
• Spending
• Currency

Answer 3

Solution to Hyperinflation

• Passive Resistance stopped with fulfilment
• Spending cuts in gov wages, benefits, mortgaging
• Currency reintroduced with Rentenmark then Reichsmark

Question 4

Dawes Plan

• Loans
• Stability
• Annual reparations

Answer 4

Dawes Plan

• Loans of 800m marks from US business leaders
• Stability ensured by payment holidays
• Annual reparations reduced until 1929

Question 5

Living Standards

• Wages/Employment
• Housing
• Health/Welfare
• Groups

Answer 5

Living Standards

• Wages/Employment increased for women and working class especially, but farmers income fell
• Housing projects ensured housing to counter shortages in early Republic
• Health/Welfare improved, worker rights, life expectancy until 1929
• Groups like women and minorities expanded until 1929, when they were the first to lose out

Question 6

Was 1924-29 Golden

• Debts, working class, imports
• Insecurity, savings, incomes, farmers

Answer 6

Was 1924-29 Golden

• Debts wiped, working class unions and pay, imports led to more consumer goods
• Economic insecurity of upper classes, savings worthless, fixed incomes not keeping up, farmers unemployed and low pay

Question 7

Impact of Depression

• Human
• Political
• Banks, Taxes, Trade, Wages, Welfare, Unemployment

Answer 7

Impact of Depression

• Human - migrations for work, low welfare, unemployed for years
• Political - Lost faith in typical right, reparations abolished
• Banks collapsed, Taxes raised, Trade fell 55%, Wages fell 14%

Question 8

Brunings Policies

• Reparations
• Worsening
• Welfare and Unions

Answer 8

Brunings Policies

• Reparations abolished
• Worsening crisis to attempt to cancel reparations
• Welfare and Unions destroyed