Economic Crisis After WW1
- Created by: bungee100
- Created on: 01-06-17 11:23
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- Economic
crisis after WW1
- Social Welfare
- Set up retraining schemes.
- Provided loans to those leaving the army
- Set up pension payments for wounded, widows and orphans
- 10% of population were receiving federal welfare payments
- Debt and Reparations
- 1918 owed 150 billion marks from loans.
- Treaty Of Versailles sank the debt deeper
- At first attempted to meet payments and carried on printing/borrowing money
- Until 1924, reparations were paid in kind ( coal,wood and railway carriages )
- The Ruhr
- January 1923, Germany failed to pay reparations.
- 1923, French Occupied Ruhr
- Cancelled all paypments to France and urged for passive resistance in Ruhr
- French cut of Ruhr from rest of Germany and used own workers.
- Neither France nor Germany benefited, in 1923 they began negotiations
- Hyperinflation
- Crisis In Ruhr escalated inflation into hyperinflation
- Lost faith in money, relying on barter and the black market
- Towns, regions and bussinesses began to issue their own notgeld.
- Government cut back on about 750,000 employees
- Poor hit hardest, social welfare payments lost value
- Social Welfare
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