1923 - CRISIS. (Reparations and the Ruhr)

• Hyperinflation

  • Germany's economy collapsed after the Ruhr invasion, leading to massive money printing by the government.
  • Hyperinflation caused rapid price increases, making money lose its value quickly.
  • Workers had to renegotiate wages daily, while pensioners and savers were hit hardest.
  • Many people lost their life savings due to the rapidly falling value of money.
  • Millions struggled to afford food, leading to illness and starvation.
  • Crime rose, and discontent with the Weimar Government grew, although some profited.
• Invasion of the Ruhr

  • In 1923, Germany struggled to meet reparation payments from the Treaty of Versailles.
  • The Ruhr, a key industrial region, was rich in coal and steel, and essential to Germany’s economy.
  • France and Belgium invaded the Ruhr to seize resources due to unpaid reparations.
  • In January 1923, 60,000 French and Belgian soldiers occupied the Ruhr's industries.
  • German workers went on strike with government support, leading to violence and arrests.
  • The government continued to pay striking workers by printing more money, causing hyperinflation.