What challenges did the Weimar Republic face?

Hyperinflation

Hyperinflation is when prices go up ten, a hundred times or even more in a short space of time

Ruhr Crisis

The French did not believe that Germany could not pay so invaded and took over the area, to make the money up themselves.

French and Belgian troops occupied the area as a result of Germany not paying their second instalment of reparations.

German government order the workers not to obey any of the orders given by the occupiers (passive resistance).

Over one hundred men died as a result of this, and many lost their jobs as they refused to work anyway.

Positives of hyperinflation

Negatives of hyperinfaltion

When a government prints too much paper money it then looses value very quickly, causing rapid rises in prices

Poor people suffered, but the greatest casualties were the richer Germans – those with savings. Savings that might have bought a house in 1921, by 1923 would not even buy a loaf of bread!

This caused huge issues with so much money in circulation, prices and wages rocketed, but people soon realised that this money was worthless.

Borrowers, such as businessmen, landowners and those with mortgages, found they were able to pay back their loans easily with worthless money.

To deal with reparations and the Ruhr crisis the government simply printed more money. It seemed an attractive solution to paying off its debts

People on wages were relatively safe, because they renegotiated their wages every day.

Ruhr Crisis continued...

Weimar government 1919-1922

French occupation of the Ruhr

First World War

Passive resistance

1914 ~ 4 marks to the dollar

government began to print more money to pay for the war

1919 ~ 9 marks to the dollar

January 1921 ~ 65 marks to the dollar

July 1922 ~ 493 marks to the dollar

Weimar governments faced with shortages and having to pay reparations decided to print more money

They also took coal and iron and steel as payments

The German workers decided on passive resistance. January 1923 ~ 17,972 marks to the dollar

The German government was unable to make its reparation payments in 1922. France and Belgium retaliated in january 1923 by sending soldiers to occupy Ruhr industrial area of Germany.

They also had to pay the striking Ruhr workers so printed even more money

November 1923 ~ 4.2 billion marks to the dollar

This meant that the government lost money from the production of coal, iron and steel.