Economic and social problems in Germany 1919-1924

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  • Created by: Gray_1234
  • Created on: 10-04-24 13:01
How did Britain fund the war?
Through higher taxes and government funding
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Why was this a risky idea?
It increased debts and if Germany was to win the war, then they would be able to recoup it's losses by annexing the industrial areas of enemies and being made to pay reparations
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Why were the traditional means of fixing government debt impossible for Weimar?
A rise in taxation would anger anti-republican parties, reduce spending was difficult because civil servants had to be paid and successive governments had to keep civil servants on their side to reduce instability
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What disappeared in 1921?
Unemployment
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How did inflation affect reparation payments?
It made the value of the reparation repayment fall due to inflation and so more had to be paid
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How was inflation helpful in the early years of Weimar?
It helped unemployment, which was only 1.7 percent compared to 17 percent in Great Britain
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What was set up to determine the scale of damage caused by the German Armed Forces?
A Reparations Commission
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Who resigned from the government out of protest about the reparation payments?
The cabinet of Fehrenback, who was quickly replaced with Chancellor Joseph Wirth
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What did Germany ask for in January 1922 and what did they receive?
They wanted a pause in reparations payment and this was paused for both January and February 1922, to be made up later
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What further requests did Germany ask for in July and later November 1922?
-July, they asked for a further pause
-November, they asked for a loan of 500 million marks and to be released from reparation obligations for three to four years to stabilise the currency
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What did these requests end in?
The French becoming suspicious and the invasion of the Ruhr by both French and Belgium troops, to extract payment by force
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Consequences of the treaty terms
Made the already huge government debt worse, Germany's gold reserves were not large enough for the demands, Germany's coal reserves were not big enough to pay for that part of the treaty
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Why did Germany's attempt to fix this fail?
Germany tried to rely on exports, but the Allies put a hamper on German exports, confiscating it's entire merchant fleet and then later high tariffs were put on German imports
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What was the only thing that Germany could do to pay for the reparations?
They printed more money, which increased inflation tenfold
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When did the French invade the Ruhr?
January 1923
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How many soldiers invaded?
60,000
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What was their main aim?
To seize the area's coal, steel and manufactured goods are payment for the reparations. They took hold of mines, factories, steelworks and railways, demanded food and set up machine-gun posts
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What was "Passive Resistance"?
No-one living in the area, from businessmen and postal workers to railwaymen and miners, were told to not cooperate with the French
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What was the German military response?
Paramilitary groups set up plans to sabotage the French, but the French resistance overpowered them. They set up military courts and punished: mine owners, miners and civil servants who would not comply with their authority
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How many Germans were shout under the French occupation?
132
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What was the occupation output like?:
In May 1923, deliveries were only a third of their monthly deliveries in 1922 and output in the Ruhr had fallen to around a fifth of it's pre-occupation output
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What were some of the economic impacts of the occupation?
-Paying wages of striking workers further drained government finances
-Tax revenue was lost from closed businesses
-Germany had to import coal
-Shortages of goods pushed prices up higher
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What was the hyperinflation crisis?
Money being printed at an alarming rate, which increased inflation to unimaginable levels. Workers usually found themselves collecting their wages and trying to use them as quickly as possible, before prices rose even further
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What were the social impacts of the hyperinflation crisis?
Food riots increased in shops, gangs of city dwellers travelled to the countryside to take food from farms, but were confronted by angry farmers. There was a huge increase of convictions for theft
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What was the main social problem faces by those who created the Weimar Republic?
To enshrine the aspirations for social welfare, to help individuals in society and injured soldiers or soldiers' widows
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What was one of the main rights set out in the constitution?
Every German citizen has the right to work and welfare
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What was the problem with maintaining German's rights?
It meant that hyperinflation was going to increase, because to fund it they needed to print even more money
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Who were some of the winners with the hyperinflation crisis?
-Black-marketeers who bought food stocks
-Those who had debts, mortages and loans
-Helped to wipe small business' debts
-Those leasing properties on fixed rents
-Owners of foreign exchange and foreigners in Germany
-Farmers
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Who were some of the losers with the hyperinflation crisis?
-Pensioners and war widows
-Those who had lent money to the government in "War Bonds"
-Landlords
-Unskilled workers or those not in trade unions
-Artisans and small business owners
-The sick
-Children (many died of diet related illnesses)
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Other cards in this set

Card 2

Front

Why was this a risky idea?

Back

It increased debts and if Germany was to win the war, then they would be able to recoup it's losses by annexing the industrial areas of enemies and being made to pay reparations

Card 3

Front

Why were the traditional means of fixing government debt impossible for Weimar?

Back

Preview of the front of card 3

Card 4

Front

What disappeared in 1921?

Back

Preview of the front of card 4

Card 5

Front

How did inflation affect reparation payments?

Back

Preview of the front of card 5
View more cards

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