The Weimar Republic was already struggling with inflation brought on by the war.
In order to support the workers in the Ruhr, the government printed more money. This lead to hyperinflation to the point that paper money became worthless.
Consequences of the Ruhr occupation:
- Middle class: savings were entirely wiped out. Left demoralized and cynical about their future
- Lost faith in the system
- People vulnerable to the appeal of extremists
- Germany was in danger of collapse
- Allies were not receiving their payments and their hopes for economic recovery decreased.
The US wanted its loans back from the UK and France. This wasn't possible because they weren't getting reparations from Germany. The US interfered with the Dawes Plan. This allowed Germany to reschedule reparations payments so the total amount was reduced and the deadline extended. The US gave loans to Germany.
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