Challenges and recovery: the impact of economic problems 1923-29 Flashcards
(31 cards)
What three things made 1923 such a crucial year?
1) The French and Belgian occupation of the Ruhr
2) Hyper-inflation
3) The Munich Putsch
What was the root cause of hyper-inflation?
In 1922, Germany missed a reparation payment
What happened because of Germany’s missed reparations payment in 1922? Why?
- French and Belgian troops responded by invading the Ruhr
- to take what was owed in the form of raw materials and goods
What did the Weimar Republic tell workers to do about the French and Belgian invasion of the Ruhr?
Not to co-operate with the invaders, and go on strike using passive resistance
What is passive resistance?
Opposing government actions in non-violent ways, refusing to co-operate, staging strikes, etc
How did the workers in the Ruhr going on strike in 1923 negatively impact the government?
- The government still paid the workers’ families
- because no industry was happening, the government slowly ran out of money
- the solution to this was to print more money
- this led to hyper-inflation
What happened as the 1923 government printed more money?
- It reduced in value
- Shops and suppliers put up prices, so people had to be paid more
- This spiralled out of control and led to hyper-inflation
Give two examples of people positively impacted by hyper-inflation
- People with loans, who found it easier to pay back debts as their loans were worth less than they had been
- Some businessmen, who were able to pay back loans used to set up their companies
Give two examples of people negatively impacted by hyper-inflation
- Anybody with savings, who watched them reduce in value and become worthless
- People with fixed incomes, or some workers whose pay increases could not match the rise in prices
Give two negative effects of hyper-inflation for the government
- People had died during the crisis in the Ruhr
- People lost confidence in the government as it was seen to be powerless over hyper-inflation. More people turned to extremist parties instead
Why did Hitler decide to try to overthrow the government in 1923?
The German economy was in turmoil, which gave him an opportunity
Who did Hitler trick before the Munich Putsch, and why?
A former army leader General Ludendorff, allowing him use of his troops
What did Hitler do the day before the Munich Putsch?
- With 600 SA members
- he interrupted a meeting of the Bavarian government in a beer hall
- he told them he was going to overthrow the government
In the Munich Putsch, how many Nazis marched through Munich?
3000, including Hitler
In what three ways was the Munich Putsch a long term success for the Nazis?
- Hitler’s trial was publicised all around Germany, which made him a household name
- He was sentenced to five years in prison, but only served nine months
- While in prison, he wrote Mein Kampf, which set out his key beliefs and how to achieve them
What were the years 1924-29 known as?
The Golden Years
Who was a key individual in reforming Germany after 1923?
Stresemann
How did Stresemann solve hyper-inflation?
He recalled the old currency and replaced it with the Rentenmark, quickly bringing hyper-inflation under control
How did Stresemann not completely solve hyper-inflation?
- Many people in Germany had lost savings
- They could not forget how hyper-inflation had affected them
In what year did Stresemann negotiate the Dawes Plan?
1924
What two plans did Stresemann negotiate to lower and spread out reparations? What years?
- The Dawes Plan (1924)
- The Young Plan (1929)
What did the Dawes Plan do?
- Gave Germany gave longer to pay off reparations
- Brought in more US loans
What did Stresemann use US loans to do?
Build new infrastructure, such as railways and factories
What was the problem with the Dawes Plan?
The loans made Germany too dependant on the US economy
