Winners and Losers of Hyperinflation

Question 1

Define mittelstand.

Answer 1

The ‘middle rank’ - social group with farmers, artisans and small shopkeepers. They sought help from the government due to vulnerability and unsteady income sources due to inflation.

Question 2

Who were the winners of hyperinflation?

Answer 2

.Black marketeers - sold food at inflated prices.
.People who leased property on long-term fixed rents.
.People with mortgages, debts and loans.
.Business people taking out loans.
.Farmers with food demands.
.Foreigners and owners of foreign exchange.
.Hugh Stinnes - gained cheap credit and bought out competitors and paid of loans. 1535 companies and 20% of industry owned in 1924.

Question 3

Who were the losers of hyperinflation?

Answer 3

.Pensioners and war widows on state pensions.
.Mittelstand - taxes and price rises.
.People who lent the government war bonds.
.The unwell. Death and suicide increased and so did malnutrition.
.Children and disease.
.Workers despite pay rises.
.Middle class - all savings were wiped out.
.Landlords reliant on rents which were fixed.
.Unemployment increase with 29.3% workforce employed in 1923.