Hyperinflation
- Created by: Cerys McDermott
- Created on: 17-12-20 20:29
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- Hyperinflation
- Social Welfare
- System of un- employment benefits and old age pensions
- Every German had a right to work/welfare.
- Printing Money for Social Welfare. Was a Burden
- Giving out money that they did not have. Benefits were further extended= more money
- Passive Resistance
- Not working for the France/ Belgium people, on strike but still getting paid (Paid to not work/ go on strike)
- Giving money to not working people, giving money that they did not have. Thousands and thousands of people
- Printing Money
- They decided to print money rather than not raise taxation because of the pressure off of the German people
- When they printed more money it meant that money was worth less.
- Debt from War
- 1.44 Billion debt because of war
- They was in a lot of debt because of the war so they already had a lot to pay off.
- Debt from the Treaty Of Versailles
- 6.6 billion in reparations, a lot of money that was added on top of the debt of the war
- Could be paid in raw materials (Industrial)
- Winners
- Black marketeers who brought up food stocks and sold them at vastly inflated prices
- Those who had debts, mortgages and loans could easily pay them off
- Helped enterprising business people who took out new loans and repaid them once the currency developed further
- Those leasing property on long-termed fixed rents gained because the real value of the rents they were paying decreased
- Losers
- Pensioners were badly hit, war widows etc as they are living on low costs
- Those who borrowed money to the government in wartime by purchasing fixed interest rate
- Landlords reliant on fixed rents
- Mittlestand people lost all of their savings as they would of had a lot stored away
- Social Welfare
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