Weimar Republic Economics Theme 3 1918-32

1918- The German economy was very weak due to the effects of the war. 

• The government was printing more money causing severe inflation (Wages and savings lost value as prices shut up).
• Trade, Farm production was affected (Businesses suffered and people lost their jobs)             
• Loss of agricultural and industrial land due to Treaty of Versailles                                               
• Black Market developed as inflation shot up and goods were scarce                                           
• After war, with turmoil of strikes and political unrest and changes of gov, economy spiralled 

Economic crisis and government response 1918-23

• The cost of everything went up with increasing speed.
• Unemployment increased as a result of the economic downturn, ending of war production, soldiers leaving army and wages were reduced

How the government tried to deal with the crisis:

Social Welfare: 

• Provided loans to help those leaving the army, until they found work
• Pension payments for wounded, widows and orphans
• Start of 1920, millions of disabled veterans and survivors. Gov provided variety of social welfare programmes- Lump sum payments and pensions. 1924, about 10% of…