Hyperinflation
- Created by: Alice Edwards-King
- Created on: 23-04-15 20:03
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- Hyperinflation
- Germany couldn't keep up with their reparations. The French wanted them to pay what they owed.
- In January 1923, French and Belgian troops invaded the Ruhr, the richest industrial area in Germany.
- They took over all the factories and mines in the area.
- German troops were ordered to stand aside and let them occupy the area.
- Goods and materials were seized.
- Germans were furious about what was happening but the government couldn't do a lot to stop the invasion.
- Workers in the area responded with passive resistance.
- Refusing to work.
- People across Germany admired their actions.
- Made the economy weak as money from products was no longer being gained.
- The government did not have enough money to pay workers for their passive resistance.
- Ebert decided to print more money.
- The value of money went down and the price of things went up.
- Ebert decided to print more money.
- Elderly people on fixed pensions found these were now worthless.
- Workers were, to some extent, protected as they were paid higher wages. Workers did hurry to spend wages before they became worthless.
- Trading goods became common.
- People with debts and loans benefitted as they could easily pay back the money at the fraction of the cost.
- The rich were protected but the middle classes saw their savings and businesses be destroyed.
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