Booklet 3: Reacting To Economic Challenges 1918-32

Question 1

Debt from WWI

Answer 1

Defeat left Germany with a debt of 144,000 million marks
The debt increased the difficulties facing Germany

Question 2

Industrial potential after WWI

Answer 2

Industrial potential was damaged by the loss of saarland
Germanys pre war trading was shattered

Question 3

Investment after WWI

Answer 3

By 1919 Germanys internal finances were in a bad state
The war effort was financed through short term loans by inflating currency

Question 4

Reparations

Answer 4

Germany owed £6,600 million to allies
Payable in annual instalments of of 100 million
Annual payments equivalent to a quarter of Germanys exports

Question 5

Loss of income after WWI

Answer 5

Germany lost territory and coal production declined by more than 15%
Governments tax revenues dropped

Question 6

Post-war unemployment

Answer 6

6 million soldiers left unemployed, Women workers sacked to allow soldiers to have jobs
1919 1.1 unemployed, dropped by 50% by end of 1919

Question 7

Global economic slump post WWI

Answer 7

German government began to print money in 192, to buy foreign currency
Too much money chased too few goods
France and Britain had high levels of debt

Question 8

1921 inflation

Answer 8

Germany began to pay reparations
Started to print money to buy foreign currency to pay reparations
Without rise in amounts of goods caused inflation and destabilisation

Question 9

1922 inflation

Answer 9

Germany tried to negotiate a payment holiday
German government didn’t want to raise taxes or prices of services

Question 10

December 1922 inflation

Answer 10

Inflation rising and government failing to make payments
France and Belgium sent 60,000 troops to Ruhr to seize coal

Question 11

January 1923 inflation

Answer 11

Passive resistance began to prevent France and Belgium taking reparations
Government printed more money to pay striking workers
They didn’t rise taxes or cut public spending

Question 12

Economic effects of hyperinflation

Answer 12

At end of 1923, reichsbank was printing 100 trillion mark notes
People’s savings were worthless

Question 13

Social impacts of hyperinflation

Answer 13

Lack of trust in the german government
Health conditions went down, diseases spread, infant mortality

Question 14

Political impacts of hyperinflation

Answer 14

Outrage at government due to the lack of food
Political issues led to hyperinflation, coalition wanted compromise, but SPD weren’t in the coalition

Question 15

Who thrived from hyperinflation?

Answer 15

Industrialists enjoyed cheap credit facilities
Industrial enterprises sprung up

Question 16

Unemployment in hyperinflation

Answer 16

Unemployment decreased due to the companies being able to employ more people and decrease wages

Question 17

When was Gustav Stresemann elected

Answer 17

August 1923
He immediately began to introduce a range of policies aimed at ending inflation

Question 18

Policy of fulfilment

Answer 18

Government no longer had to pay the workers of the Ruhr and there was less need to print money in

Question 19

Cuts in public spending

Answer 19

Stopped flooding the economy with money, reduced pay of civil servants

Question 20

Rentenmark

Answer 20

1924
Value remained stable, old marks were phased out
Regular forms of trading and payment restarted

Question 21

Gustav Stresemann beliefs

Answer 21

Wanted to maintain balance between uk, usa and Germany
Nationalistic, supported war effort

Question 22

Dawes plan

Answer 22

Received a loan of 800million gold marks mainly from USA
Annual repayments reduced by 1929
Repayments allowed over a longer time period
If Germanys economic stability was impacted, they could have a payment holiday

Question 23

Impacts of the Dawes plan

Answer 23

Industrial production doubled between 1923 and 28
Welfare payments and wages for gov employees increased
Growing economy attracted investments from overseas

Question 24

Living standards, time period positives

Answer 24

Golden years 1924-29
Prosperous for industrial working class, earnings increased
Weekly wages increased

Question 25

Living standards, time period negatives

Answer 25

Hyper inflation in 1923, mittelstand suffered Depression 1929-32, high unemployment, falling wages, working class hit hard

Question 26

Living standards, wages and employment positives

Answer 26

Increase in retailing and service jobs, more opportunities for women in white collar jobs

Question 27

Living standards, waged and employment negatives

Answer 27

Farmers suffered fall in income 1926 onwards Unemployment remained at about 1million most of 1920s

Question 28

Living standards, housing positives

Answer 28

2.8 million new homes built 1919-32 Designed with green spaced

Question 29

Living standards, housing negatives

Answer 29

Severe shortage especially in early years

Question 30

Living standards, health and welfare positives

Answer 30

Up till 1929 life expectancy improved Welfare spending high in 1929

Question 31

Living standards, health and welfare negatives

Answer 31

Effects of WWI, malnutrition, diseases, wounded soldiers

Question 32

Living standards, class/gender positives

Answer 32

Through 1920s women in workforce increased, single women could have further education

Question 33

Living standards, class/gender negatives

Answer 33

In hard times women and ethnic minorities suffered most The mittelstand lost status and savings Farmers suffered 1925 onwards Unemployment remained

Question 34

Economic consequences of the depression

Answer 34

Decline in industrial production Collapse of 5 major banks Exports fell by 55%

Question 35

Social consequences of depression

Answer 35

Half of all people 16-30 were unemployed Poverty and homelessness depending on soup kitchens

Question 36

Government dealing with depression

Answer 36

Welfare system designed to have a thriving economy Budget could only cover 800,000 unemployed people

Question 37

Political effects of the depression

Answer 37

Bruning economic policy was to end reparations Wanted to allow the crisis to deepen to avoid reparations Wanted to aboilish welfare state and trade unions

Question 38

Bruning successes 1931-32

Answer 38

Despite his commitment to cut public spending, he initiates a small public works scheme to help road building

Question 39

Von Papen successes 1931-32

Answer 39

Expanded Bruning initiative, increased the budget.

Question 40

Von Schleicher successes 1931-32

Answer 40

Continued existing initiatives, created emergency fund for repair work