Bankruptcy and occupation of the ruhr
Germany's biggest problem at first was that the govenment went bankrupt.All the money that they had was s[pent on the war.
Treaty of Versailles had made things a lot worse as this meant that Germany had to reparations and also Germany had asked for reductions ,but the victors especially France needed money to pay war debts to the USA.With no incomes for Germany,by 1923v they could no longer pay.
I retaliation,France had sent troops over to Germany ,in a n area called Ruhr and confisctaed things such as,raw matreials and manufactured goods.The German government didn't agree with this so workers went on strike and there was even some that were sabotaged.
French felt that they had to do something about this so anyone that had got in their way they arrested.
Germany had strongly disagreed wih what the French had done but this also diagreed on how much of a failure that Weimar republic had been.Germany didn't have much say on the Weimar republic .
The shortages meant that price had to go up and this is called inflation.
The government needed money to pay their debts,but unemployment hadn't helped the situation so not much money was being recieved from taxes.
During 1919-23,Government had to print off more money as they weren't getting the right amount of money that was required.
Everyone suffered from shortages.This was because German marks became wothless in comparison to foreign currency.Foreign suppliers refused to accept anything for marks and they were worthless,so imports dried up and there was shortages of food and other goods.
Everyone found it difficult to buy what they needed.People had to cary bundles of money in baskets or even wheelbarrows.Many workers got paid twice a day so they could run out and buy what they needed before prices went up.
People with savings.Those with money in bank accounts,insurance policies or pensioners found it the hardest as their money then became worthless.Those effected were mainly from middle class.