Weimar Economy 1918-33 Flashcards
Post WW1 Economy:
High unemployment from returning soldiers (around 6 million) which led to around 1 million people unemployed in 1919 (although by 1922 this had dropped to 12000.
-high debt from reparations (6600 million pounds) and war
-loss of territory e.g. Saar which was rich in resources like coal.
-greater welfare spending
How did the government deal with returning soldiers?
-National comittees in the Länder provided loans until they could find work.
-10% of population on federal welfare.
-payed for pensions of widows, orphans etc.
How many disabled vets were given social welfare?
1.5 mill.
How much debt did Germany owe due to the war?
150 bill marks,
-add this to the reparations and Germany was in severe debt.
Why was the Ruhr significant in 1923?
France invaded which cut off Germany from essential supplies as they were behind on reparations
-e.g. coal and steel.
What were the consequences of the invasion of the Ruhr?
Hyperinflation as they had to pay striking workers : newspaper in 1922 cost 1 Mark cost 700 billion marks the next year in November 1923 (this also happened due to mass money printing to pay reps.) 200 million against the dollar in 1923
-which meant the black market flourished and
-the middle class and upper classes suffered showing the severity e.g. Von Linngans family (middle class) had to move to an urban area and become factory workers.
How many gov. employees were fired during hyperinflation?
750k.
Why did the new gov. do well in 1923?
-DVP led government used emergency decrees to bypass the Reichstag as they couldn’t agree on policy.
-Occupation of Ruhr created international sympathy for Germany which could be taken advantage of.
What replacement for the mark did Stresemann introduce? in 1923?
Rentenmark.
What were the effects of introducing the Rentenmark?
-valued against 1913 gold mark
-Germans swapped their hoarded money for the new currency –> prices settled.
- restored faith in German money abroad.
-This was helped by mortgaging 3.2 billion marks worth of land and industry to promote it.
-right wing criticised him for wanting to negotiate with allies and pay rep.
How did Stresemann use emergency decrees?
He used them to control rents, wages and prices.
How did Stresemann help big businesses?
They formed cartels to control prices and
-built new factories with better technology.
How did Stresemann recover trade?
Joined LoN to improve Germanies international reputation and
-Germany had the steel and chemicals they needed.
-By 1926 trade was back to 1913 levels.
What was the Dawes Plan and what was its impact?
Dawes: 1924 -recieved loan of 800 mill gold marks by US.
-if Germany was in an economic crisis, reparations would be suspended.
-annual payment amount reduced (until 1929)
Impact:
-Germany used these loans to repay the French and British, leftovers were used to stimulate industry and into public works.
-The US were quick to want to reduce reparations in order to protect Germanies economy.
What happened to agriculture under Stresemann?
-Around 1/3 of all workers were farmers. -Big businesses would encourage Hindenburg to block farming reforms so they could monopolise the industry.
