Chapter 3 - Economic and social problems in Germany Flashcards
(26 cards)
What did the reparations committee grant Germany in January 1922?
A postponement on the January and February instalments
What did Germany ask for in November 1922?
Loan of 500 million marks
To be released from payment obligation for 3/4 years to stabilise their currency
Why was it difficult to make gold payments?
Germany’s gold reserves were inadequate for the scale of reparations payments
What did Germanys loss of coal reserves mean?
The payment of coal was difficult
What was Germany’s response to economic impact of reparations?
Print more money
What was hyperinflation?
Money lost its meaning therefore prices went up
What happened to food?
It started to run short as people started to hoarder
How many men did the French and Belgians send to the Rhineland?
60,000
Why did France and Belgium send an army?
To force Germany to comply with the reparation payments
What did the number of occupying forces grow to?
100,000
What policy did Cuno order for the people to follow?
Passive resistance
What was passive resistance?
The workers refused to work for the French while still receiving payments
What were German workers promised if they went on strike?
That they would be paid
Why was paying wages to striking workers a probelm?
Put a further drain on government finances
Why did people with debts and mortgages benefit?
They could pay their loans in worthless currency
How did hyperinflation help enterprising business people?
They took out loans and repaid them once currency had devalued further
How did farmers cope well?
Food was in demand and money was less important in rural communities
Why were pensioners badly hit?
They were on state pensions
Why were landlords disadvantaged?
They relied on rents
Why were the Mittlestand losers?
Their costs rose and the prices they charged could not keep pace with inflation
Why were the sick losers?
The cost of medical care increased
What did the rapid rise in food prices lead to?
Malnutrition
In 1919 what was the working day limited to?
8 hours
The state health insurance was extended to include who?
Wives, daughters and the disabled
