economic developments 1914-1929

Question 1

what were the post war economic problems germany faced

Answer 1

printing more money in order to pay back treasury bills taken out in the war , they abandoned the link between paper money and gold reserves
price of basic consumer goods tripled
short supply of food
35 % of stuff was sold on the black market
coal mines in the saar were taken by the french in the treaty of versallies

Question 2

what did the increase in money in circulation increase to from 1913 to 1919

Answer 2

2000 milion in 1913 to 45000 million in 1919

Question 3

how much did national debt increase from 1913 to 1919

Answer 3

5000 milion in 1913
to
144000 million in 1919

Question 4

how much of germany’s merchant fleet was given to the allies in treaty of versallies

Answer 4

90%

Question 5

what was unemployment rates in 1921

Answer 5

1.8%

Question 6

why did the econemy grow between 1920 and 1922

Answer 6

low unemployment encouraged american investment

Question 7

by how much did prices increase between 1918-1919 and 1919-1920

Answer 7

1918-1919 doubled
1919-1920 quadrupled

Question 8

why did german industrialists benefit from inflation

Answer 8

they could take short term loans from central banks to expand their businesses and then repay them with inflated currency

Question 9

why did the gov benifit from inflation

Answer 9

it lessened their debt

Question 10

why were politicians encouraged to leave the economy alone when it came to reparations

Answer 10

the policy of fulfilment suggested that if germany appeared unable to pay the reparations the allies would revise them

Question 11

when was the first reparations paid

Answer 11

may 1921

Question 12

when did germany fall behind in reparation payments

Answer 12

january 1923

Question 13

when did france and belgium invade the ruhr

Answer 13

11 jan 1923

Question 14

what was passive resistance

Answer 14

workers were promised that their wages would continue if they didnt work for the enemy

Question 15

how did the ruhr occupation worsen germany’s economic position

Answer 15

paying workers and providing them with food drained government money
tax revenue was lost from production in the ruhr and workers who were unemployed
coal had to be imported
shortages pushed up prices further
international confidence in the mark collapsed

Question 16

when did the monthly rate for inflation reach 50%

Answer 16

july 1922

Question 17

when did the currency become worthless

Answer 17

november 1923

Question 18

why were workers being paid twice a day

Answer 18

prices rose by the hour

Question 19

when was the rentenmark introduced

Answer 19

novemebr 1923

Question 20

who introduced the rentenmark

Answer 20

hjalmar schacht

Question 21

what was the rentenmark valued at

Answer 21

1 rentenmark to 1 trillion old marks
it was backed by land and industrial resources and supply was strictly limited

Question 22

what did the government do to reduce inflation

Answer 22

stopped offering credit to industries
lending rates were controlled
new taxes on businesses and individuals

this allowed the government to reinvest the nations wealth

Question 23

how many companies went bankrupt in 1924
why was this good

Answer 23

6000
it made the economy more efficient

Question 24

when did the rentenmark become the reichsmark

Answer 24

august 1924

backed by gold reserves

Question 25

what did the dawes plan agree in 1924

Answer 25

reduced amount of reparations paid each year until 1929 germany to pay 1000 million marks immediately and then the sum would gradually increase in relation to germany's industrial performance 800 million mark loan from america establish a new currency under ally supervision

Question 26

who disagreed with the dawes plan

Answer 26

DNVP and other right wing parties

Question 27

what benefits did the dawes plan bring to germany

Answer 27

allies accepted the fact that germany's repayment issues were real loans were invested into machinery factories houses and jobs evacuation of the ruhr and better relations with france optimism in Germany

Question 28

what wa unemployment like in 1926

Answer 28

20%

Question 29

what was the young plan in 1929

Answer 29

reduced total reparations payments by 75% end allied supervision of german banking

Question 30

who disagreed with the young plan

Answer 30

schacht right wing opposition

Question 31

what was industrial production like in 1919

Answer 31

1/3 of what it had been in 1913

Question 32

why did german industry suffer in 1916

Answer 32

british blockades demand for conscription

Question 33

when did industrial production reach pre war levels

Answer 33

1927

Question 34

how much did german economy grow from 1913 to 1929

Answer 34

4%

Question 35

how much did american economy grow from 1913 to 1929

Answer 35

70%

Question 36

what was unemployment in 1929

Answer 36

3 million

Question 37

key industrial developments

Answer 37

industrialists rationalised (getting rid of surplus labour , introducing new tech , forming cartels ) increase in heavy industry productivity although lack of resources meant that they did not return to pre war levels advances in chemical industry electrical industry expanded car and plane industry expanded smaller industries didnt do so well because they had access to less capital and restricted markets

Question 38

why did agriculture suffer in the war years

Answer 38

conscription took labourers to the army turnip winter in 1916-1917 low yield and high prices international competition