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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 COPY OUT THIS TEXT Inflation is when the value of money decreases, so that people have to pay more and more for goods and services. 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 Inflation LO: Understand and explain the economic problems faced by the Weimar Republic The Ruhr Crisis: 1923-25 Invasion of the Ruhr (1923) 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. In our cafes we put up signs saying, ‘No Dogs or French allowed!’ Useful definitions What were the consequences of the Ruhr occupation? First, check that you understand the types of effect. LO: Understand and explain the economic problems faced by the Weimar Republic Useful definitions What were the consequences of the Ruhr occupation? LO: Understand and explain the economic problems faced by the Weimar Republic Hyperinflation The 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 halfhour 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 Unemployment rose. by weight, as counting them took too long. People’s savings were completely wiped out. 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 Hyperinflation Two men sell paper money by weight. Their sign indicates that money is worth more than bones, but less than rags. LO: Understand and explain the economic problems faced by the Weimar Republic As Germany neared economic collapse, the strike had to end. Occupation of the Ruhr (1923) 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 Dawes Plan. LO: Understand and explain the economic problems faced by the Weimar Republic Plenary Exercise Definitions LO: Understand and explain the economic problems faced by the Weimar Republic