Economic crisis in Germany 1923

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Causes

Occupation of the Ruhr:

  • people stopped working;
  • disobiedience, strikes and riots;
  • took over factories mines and shops;
  • violence from the French;
  • lost more money than they already had.

Reparations:

  • exsisted before;
  • £6.6 billion in goods and gold;
  • couldn't afford to make payments;
  • left in debt with other coutries.

Printing money:

  • more money in circulation;
  • loses its value;
  • loss in confidence of the mark;
  • inflation increase.
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Impact

  • loss in confidence of mark;
  • mark became worthless;
  • prices could rise 20%-1005 a day;
  • major food shortages.
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Losers

  • those with savings, war bonds and pensioners;
  • businessmen- couldn't buy imports&new technologies;
  • landlords and those reling on benefits;
  • Government seen as incompetent;
  • Jews became hated.
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Ending

  • new currency;
  • cut expenditures and dismissed civil servants;
  • called off passive-resistance;
  • joining league of nations;
  • Kellog-Briand pact;
  • the young plan;
  • Locardo treaties;
  • Dawes plan.
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Success&Failures

Successes

  • Extreme parties gained less support in elections. This was a success because there was less divide in the country.
  • The economy appeared to be recovering. This was a success because Germany can start to pay off the reparations easier.
  • Germany's culture was growing. This brought more tourists to Germany- meaning more money.

Failures

  • there were still people opposing the Weimar republic. This is a problem as the country may not have been united.
  • Germany still relied on american loans. This is bad because they could have been withdrawn at any time.
  • some of the entertainment in Berlin was seen as corrupt and obsessed with sex. This could be a bad thing as people wouldn't visit.

         

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