economic challenges

• Hyperinflation 


  Is when the price of goods increased exponentially
• how much did a loaf of bread cost in 1923

  200,000 billion marks
• what was the German governments initial plan to pay the WW1 reparations 


  to print more money
• what was the problem with printing more money


  It didn't have enough gold to match it and became bankrupt
• what did the german goverment ask the allies


  more time to pay post-war shortages
• where did french troops invade in order to take respirations 


  the ruhr
• what was in the ruhr making the French's attack significant 


  80% of coal, iorn and steel
• when did the german mark became worthless 


  in 1923
• What was one negative effect of hyperinflation on individuals?


  Some people could not afford essentials like bread.
• How did wages change during hyperinflation compared to prices of goods?


  Wages rose, but not as quickly as the price of everyday goods.
• Who benefited from hyperinflation?


  Farmers benefited from hyperinflation.
• What happened to some businesses during hyperinflation?


  Some businesses went bankrupt.
• What was the impact of hyperinflation on people with fixed or monthly incomes?


  People with fixed or monthly incomes, such as pensioners, suffered most.
• How did hyperinflation affect foreign visitors?


  Foreign visitors could buy more for their money, leading to an influx of people.
• Who did people blame for the hyperinflation crisis?


  People blamed the Weimar government.
• What financial advantage did some people and businesses gain from hyperinflation?


  Some people and businesses could pay off mortgages and loans as the loan was still the same price.
• How did fixed rents change during hyperinflation?


  Fixed rents for rooms or shops became very cheap.
• What happened to savings during hyperinflation?


  Savings became worthless.
• Which social class was most affected by the loss of savings during hyperinflation?


  The middle classes were most affected by the loss of savings.
• What was Germany's biggest problem after World War I?


  Germany was completely bankrupt
• How did the Treaty of Versailles affect Germany's economy?


  It took away areas that provided wealth, worsening the financial situation
• What were the reparations payments for Germany described as?


  Totally unmanageable
• What action did the French take in December 1922 regarding Germany's missed payment?


  The French sent troops into the Ruhr to collect coal
• What was the response of the Weimar government to the French occupation of the Ruhr?


  They called on citizens to passively resist
• How did the French occupation of the Ruhr affect Germany's economy?


  It worsened Germany's financial problems by disrupting coal, iron, and steel production
• What economic issue did Germany face due to excessive money printing in the 1920s?


  Hyperinflation
• How does printing more money affect its value?


  It decreases the value of each banknote
• What happened to the price of a loaf of bread from 1919 to the end of 1923?


  It increased from 1 mark to 200,000 billion marks
• What did people begin to do as a result of hyperinflation?


  They started to barter goods and services
• What were some consequences of hyperinflation for people on fixed incomes?


  They found themselves destitute
• How did hyperinflation affect the middle class in Germany?


  They lost their life savings
• What happened to businesses during hyperinflation?


  Many went bankrupt and were bought out for tiny amounts
• What was one of the most damaging effects of hyperinflation on foreign trade?


  Foreign suppliers refused to be paid in marks
• How did hyperinflation impact the Weimar government’s reputation?


  It showed the government to be weak and unable to manage the economy
• What was the effect of the government’s failures on extremist parties?


  It emboldened extremist parties and increased their support