Why was 1923 the year of crisis?

Question 1

What was a result of Weimar government resigning? When?

Answer 1

-Weimar government resigns and the new Z-SPD-DP coalition determines a policy of fulfilment
-May 1921

Question 2

What was the Reparations bill set to? When?

Answer 2

-6.6 million
-May 1921

Question 3

When was the first instalment of the reparations paid?

Answer 3

-Autumn 1921

Question 4

What was still an issue after the first instalment of the reparations was paid?

Answer 4

-no attempts to stabilise the currency or cut expenditure/not increase taxes
-it becomes inevitable that Germany will default (fail to pay reparations)

Question 5

When does Germany default/fail on the payment of coal and timber?

Answer 5

-January 1923

Question 6

What was a result of Germany failing on the payment of coal and timber?

Answer 6

-French and Belgium troops immediately occupied the Ruhr and passive resistance began

Question 7

What is passive resistance in terms of the occupation of the Ruhr?

Answer 7

-German factory workers refused to work and striked but they were supported by the government

Question 8

What did the government have to do in August 1923 to pay the strikers in the Ruhr?

Answer 8

-print more money

Question 9

What was the impact of the government printing money to pay the strikers in the Ruhr?

Answer 9

-inflation spiralled out of control leading to a period of hyperinflation->trad unions could do nothing to help and the government struggled to manage the situation

Question 10

What was a long term cause of hyperinflation?

Answer 10

-financial cost of war

Question 11

What was a medium term cause of hyperinflation?

Answer 11

-cost of social reform and welfare costs

Question 12

What was a short term cause of hyperinflation?

Answer 12

-French occupation of the Ruhr

Question 13

What were the impacts on the middle class?

Answer 13

-savings were made worthless
-businessmen could no longer buy goods from abroad as German money was worthless
+could exploit demands of the market
-increased support for extremists

Question 14

What were the impacts on pensioners?

Answer 14

-their pensions and savings became worthless
-they could not work and were so badly affected as they had fixed incomes

Question 15

What were the impacts on the Weimar government and unrest?

Answer 15

-people blamed the government for the economic problems
-Hitler saw a chance to seize power and launched the Munich Putsch

Question 15

What were the impacts on civil servants?

Answer 15

-depended on fixed salaries which fell in value

Question 16

What were the impacts on industrial workers?

Answer 16

+had few savings so not badly affected
+jobs mostly stated secure
-lost faith in the government
-unemployment increased

Question 17

What were the impacts on the rich?

Answer 17

+largely unaffected if their money was in property or kept overseas
-rich people started to see the government as incomplete

Question 18

What were the impacts on anti-Semitism?

Answer 18

+some Jewish families kept their money in foreign banks and so were unaffected
-increased hatred which groups such as a Nazis focused on

Question 19

What were the impacts on businessmen?

Answer 19

+bought up property with worthless money