Economics: Depression, Unemployment, and Inflation Flashcards
What is inflation?
Inflation was a general average rise in price of everyday items.
Which groups of people in Germany were most impacted by inflation?
Everyone! Especially those on fixed incomes, the poor, those with savings.
(even the rich were affected, just slightly so)
How did Germany worsen its own inflation rate?
printing more money. This makes the money worth less, and drives up inflation. Bottom line: Germany was not allowed to pay the war debts with its own worthless money.
Living conditions faced by Germany during the Depression
Why did the Depression have a bigger impact on Germany than it did on other nations?
Germany was already living with the losses of World War One, then the Treaty of Versailles, then having loans called in by the U.S.A.
How did the stock market crash and the Great Depression create a link between the United States and Germany?
When the stock markets crashed in 1929, the U.S. wanted all the money back that they had lent to Germany, but Germany was too broke to pay up. More misery!
How could the economic problems of the Great Depression lead to many Germans accepting the Nazi’s as a solution?
Hitler seemed like the right choice. He said he had the answers in black and white terms. He had scapegoats. He was the most reasonable of the politicians (it seemed at the time)
