Economic Problems of the Weimar Republic 1918-1923

Mind map of the economic problems facing the Weimar Republic. 

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  • Created by: Hasan
  • Created on: 30-11-12 19:36
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  • Economic Problems of the Weimar Republic 1918-1923
    • Treaty of Versailles
      • The reparations meant that Germany was losing money constantly.
      • The Treaty deprived Germany of wealth earning areas such as the coal fields of Silesia. This   reduced income and increased unemployment.
    • Occupation  of the Ruhr
      • The French confiscated industrial machinery, raw materials and manufactured goods.
      • Many factories and 80% of Germany's coal and iron was based there.
      • The disruption increased Germany's debts, unempl-oyment and shortage of goods,
        • Shortages of goods led to inflation. This meant that the price of things went up so people had to pay more to get what they wanted.
    • Government Bankrupcy
      • Germany's biggest problem was that its government was bankrupt, all reserves of gold had been spent on the war.
      • With no gold reserves and falling income, by 1923 Germany could no longer pay reparations.
        • Treaty of Versailles
          • The reparations meant that Germany was losing money constantly.
          • The Treaty deprived Germany of wealth earning areas such as the coal fields of Silesia. This   reduced income and increased unemployment.
    • Inflation and Hyperinflation
      • Shortages of goods led to inflation. This meant that the price of things went up so people had to pay more to get what they wanted.
      • Unemployment and failing factories meant that that government received less from taxes., so more money was printed.
      • German currency became so worthless that foreign suppliers refused to accept marks for goods, so imports dried up which made shortages even worse.
      • Peoples savings became worthless.
      • Printing more money made things worse, the more prices rose the more money was printed which made prices rise again. This led to hyperinflation.
  • Government Bankrupcy
    • Germany's biggest problem was that its government was bankrupt, all reserves of gold had been spent on the war.
    • With no gold reserves and falling income, by 1923 Germany could no longer pay reparations.

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