Economic problems faced by the Weimar Republic

LO: Understand and explain the economic problems faced by the

Weimar Republic

Post-war economic problems

LO: Understand and explain the economic problems faced by the Weimar Republic

Inflation is when the value of money decreases, so that people have to pay more and more for goods and services.

Inflation

Political instability was increased by economic problems.The German economy had been weakened by the war. French demands for Germany to start to pay reparations immediately led to great financial strain.The result was that Germany suffered from inflation.

LO: Understand and explain the economic problems faced by the Weimar Republic

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Inflation

LO: Understand and explain the economic problems faced by the Weimar Republic

Invasion of the Ruhr (1923)

In our cafes we put up signs saying, ‘No Dogs or French

allowed!’

Germany managed to make its first reparations payment on time, but because of inflation, Germany could not pay the second instalment in 1922.The French were determined to enforce the treaty. On 11th January 1923, French and Belgian troops occupied the industrial Ruhr region of Germany in order to take their reparations by force.The German workers in the Ruhr went on strike and refused to produce goods for the French to take. The workers became German heroes, but the strike only made the economic situation in Germany worse.

The Ruhr Crisis: 1923-25

What were the consequences of the Ruhr occupation? First, check that you understand the types of effect.

Useful definitions

LO: Understand and explain the economic problems faced by the Weimar Republic

What were the consequences of the Ruhr occupation?

Useful definitions

LO: Understand and explain the economic problems faced by the Weimar Republic

HyperinflationThe invasion of the Ruhr caused mere inflation to escalate into hyperinflation.Prices in Germany rose so fast that people could barely keep up. Workers had to be paid twice a day and given half-hour breaks so that they could spend their wages before they became worthless.People had to carry their money around in wheelbarrows and laundry baskets. Shops had to resort to measuring notes by weight, as counting them took too long.

People’s savings were completely wiped out.

Unemployment rose.

LO: Understand and explain the economic problems faced by the Weimar Republic

Weimar Republic

hyperinflation from one to one

trillion paper Marks per gold

Mark.

LO: Understand and explain the economic problems faced by the Weimar Republic

A 50,000,000 (50-million) mark banknote from 1923

LO: Understand and explain the economic problems faced by the Weimar Republic

Germany, 1923: banknotes had lost so much value that they

were used as wallpaper

LO: Understand and explain the economic problems faced by the Weimar Republic

Postage stamps of Weimar

Germany during the hyperinflation

period of early 1920s

A 1/2 Million Mark Notgeld coin from 1923

issued by the city of Hamburg, Germany

LO: Understand and explain the economic problems faced by the Weimar Republic

LO: Understand and explain the economic problems faced by the Weimar Republic

Two men sell paper money by

weight.Their sign indicates

that money is worth

more than bones, but less than

rags.

Hyperinflation

LO: Understand and explain the economic problems faced by the Weimar Republic

Occupation of the Ruhr (1923)As Germany neared economic collapse, the strike had to end.

The German government agreed to let the French and Belgians take some coal as reparations. The Allies were persuaded that Germany needed more time to pay off the reparations. A new schedule was drawn up which spread the instalments over 59 years.

Germany was also lent money by America to help her rebuild under the 1924 Dawes Plan.

LO: Understand and explain the economic problems faced by the Weimar Republic

Definitions

LO: Understand and explain the economic problems faced by the Weimar Republic

Plenary Exercise