Complete notes on Germany's 1919-24 economic & social problems from the AQA Alevel History, Democracy & Nazism course from an A* student!!!
This includes information on;
-Legacy of WW1
-reparations
-the long, medium and short term cause of the economic crisis
-hyperinflation.
As part of ...
However, don't do this
because it will not be From 1919, the WR
popular with the people The only ways the guided by finance
- could lead to political WR would have minister Erzberger,
& social difficulties been able to increased tax on
reduce the deficit businesses such as
Well educated
finance & control import tax rather Adva
pop with special
Assumption of inflation would than the actual well-d
technical skills
winning the war have been through individual. Decided indus
By the end of 1918, just allowed the increasing taxation to adopt a policy of
84% of war expenditure national debt to and/or cutting gov fulfilment in the The 6.6 billion in reparations decided in 1921
by the Allies added on top of G's already Extensive
raised was through grow and grow to expenditure (such hope that it would
massive debt of 1.44 billion eg. Iro
borrowing. Huge the point where as schools, essentially sort
amount which would be when the healthcare, itself out alone.
needed to pay back reparations bill pensions etc) However, you need Loss of resources from Had always depended
finally came a strong currency territories such as the This had been
export to achieve eco
through in 1921, to overcome Saar, Alsace-Lorraine because of -
however between 1914
G had no expectations for a the G economy Medium term inflation and all of etc. Resulted in large collapsed. Serious conse
long-drawn-out war (schlieffen was already so this is just making it percentages of decline
plan). Despite the increasing cost dire that there worse in coal production,
of war (total war = £8394 million) was virtually no arable farming and iron Due to them confiden
chance of G G's economy was war. This policy was
Kaisers gov had decided to raise
overcoming this Therefore although the reparations bill was arguably the most the war and could
this money NOT by taxation
arguably the ' turning point' where it went from powerful economy repa
(already political instability) but Growing increase
inflation to hyperinflation - it was not the on the Continent
rather by printing more money in prices. Value of
and borrowing money from the primary cause for the economic situation to mark was falling in
public through war bonds begin with. The economy was already very dire Republic was burdened with a huge
comparison to
(promised that after the war, before the sum was announced in 1921, and it financial crisis - 1.44 billion in debt
other currencies
when they won, they would pay Long term was even dire during the war itself. Arguably
them back through the destined to failure (the economy) with their
reparations of the allies... naive prediction that the war would be over with BEFORE WW1 Increasing ta
by the autumn on 1914 and they would win it
Also, since production was largely military based, the How reparations affected Legacy of WW1 Cut e
shortage of consumer goods due to the lack of 'other' Causes of the the German economy
production began to push prices up economic crisis
Instead chose to just pr
Prices quadrupled
Exacerbated Ger's but this lead to a gre
As part of the reparations, they had to pay 2 billion a between 1919 and 20
Short term Gov unable to debt and inflation (printing more money -
year to the allies. They had already been allowed to collect taxes from
postpone several instalments of its reparations Ruhr area - loosing
payment in early 1922, but when the gov asked for out on more money Between
another 'holiday' from making reparation payments in to tackle the
Economic and social problems in Germany 1919-24 against a U
July 1922 - final stage of country's inflation crisis set in growing inflation
problem
How
Hyperinflation Between 1919 -
hyperinflation In Nov 1
Significance of the Ruhr - was on the border
of France - had been demilitarised so there
When in December 1922 the
crisis of 1923 - 23, gov income ended action
reparations committee declared French prevented the
was no one stopping them Break statistics was 1/4 of what f
that G to be in default of money, delivery of coal for the Those who did
rest of G - forcing downs in was needed NOT benefit from
the French gov ordered the
More significantly though, the Ruhr French & Belgium troops to necessary stocks of law & hyperinflation Those who benefitted
was the Industrial heartland of G - occupy the Ruhr, to make G pay in fuel to be imported order from hyperinflation
from other countries. A across Workers Prices doubled
where they made their money kind what it had not done in capital
mass expenditure they the had to be almost every 4 days!
have never had to do country paid twice Middle class with
Took control of mines, Gov led by Cuno, a day so savings, fixed income etc
before
factories, railways etc embarked on a policy they could Those who had
of passive resistance. spend their Newspaper = 1 r
bought gov's war
In a way helped to unite money mark in 1922 but Those who
bonds. Interest
Urged workers to go on the German people before in 1923 = 70 were badly sick. Those who had
payment which
strike, refusing to work As a result, this situation caused the gov's prices went million marks! Healthcare mortgages, loa
they got back
w/ French authorities & finances to collapse. Mark fell to worthless levels up again prices shot up well since they co
decreased in
promised to continue to - by autumn 1923 it cost more to print a bank note Landlords dramatically - off the money the
value
pay their wages though than the note was worth reliant on ' death rates and in worthless cu
fixed' rents suicide rates
hit badly increased
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