1919-1923: economic & social Flashcards
(42 cards)
why did hyperinflation happen
- during world war one; government paid bills by printing more bank notes
- reperations to be paid in gold
- not enough goods or food to buy
- prices rose while value fell
- this was inflation
when was the ruhr invasion
11th january 1923
how did the ruhr invasion start
- 60,000 french and belgian troops occupy the ruhr
- jan + july 1922 reparations payments postponed
- nov asked for loan of 500m marks
how much of steel did the industrial areas produce
80%
how much of coal did the industrial areas produce
71%
what did chancellor cuno do in response to ruhr invasion
french and belgian engineers sent to supervise ruhrs factories
cuno called for passive resistance and stopped reparations payments
what did germans do in the ruhr during the ruhr invasion
paramilitary troops involved in sabotaging the forces, blew up railways, destroyed bridges,
how did french soldiers deal with the paramilitary troops in the ruhr invasion
set up courts and punished them
150,000 germans expelled
132 germans shot
french brought own workers in
how did deliveries in the ruhr decrease in may 1923
1/3 of average month deliveries in 1922
how was so much money being printed
reichsbank had 300 paper factories and 150 printing works to supply germany at one point
why couldnt germany just increase export trades
- lost too much coal
- couldnt increase foreign currency
- merchant fleet confiscated
- high tariffs on imports of german goods
why couldnt the republic raise taxes to deal with inflation
anti republican parties would claim money is being raised to pay reparations which was very unsupported
what did rising prices mean during inflation
- demand for higher wages
- goods cost more to produce
- prices go up to be able to pay for wage increases
what was ruhr invasion
- £6.6 billion set for Germany in 1921
- 1922 couldn’t pay
- france didnt believe Germany - them + Belgian troops marched in Jan 1923
- they claimed payments in gold + steel
germanys reaction to ruhr invasion
- Passive resistance
- caused violence between germany + france
- workers on strike to be given wages
Why didnt the government increase taxes to pay debt caused by war?
- would’ve created more hatred for Weimar Government
- nobody liked taxes - especially right wing
- weimar government already in bad situation
How did passive resistance in the Ruhr make Germany’s financial situation worse?
- because they had to now pay workers wages even though there were less goods being made
- so less money is made and goods are increasing prices
Why did Passive resistance have a limited impact?
Because the government had to now pay the workers wages with less resources and the french brought in their own workers to help retrieve resources
how was money carried during hyperinflation
baskets, laundry baskets, wheelbarrows, sacks
how much did a beer cost in hyperinflation
150 million marks
how much did eggs cost in hyperinflation
80 million marks
how did prices rise each day
between 20% to 100% each day
what would people use to pay for things
sausages and coal because they didnt lose value
how did people use bank notes
for wallpapers because it was cheaper
