The Social Impact of hyperinflation - Advantages and disadvantages table in A Level and IB History

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Created by: tallulah101
Created on: 09-01-23 16:34

The Social Impact of hyperinflation

Advantages

Black-markateers who bought up food stocks and sold them at vastly inflated prices
Those who had debts, mortgages and loans because the currency was worthless
Enterprising business people who took out loans and repaid them once the currency had devalued further
Owners of foreign exchange and foreigners living in Germany could also benefit
Most farmers coped well since food was in demand and money was less important in rural communities

Disadvantages

Pensioners
People that lent money to the government in wartime by purchasing fixed interest rate 'war bonds' also lost out because the interest payments decreased in value
Landlords reliant on fixed rents were hit badly
Unskilled workers and those that didnt belong to trade unions. Although workers were given wage increases these did not keep up with rising prices.
the Mittlestand
The siclk

Evaluation

It hit the vulnerable worst and left those who had the ability to take out loand=s and make money moves with the most money.

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