Problems with the economy

• Effects of World War Two

  • Famine in Germany due to allied blockade - a quarter million Germans had died by July 1919 when blockade was lifted.
  • Germany lost 75% of her iron ore, 25% of coal + 15% of her arable land.
  • Had to pay war debt which led to the country being poor - Weimar preferred to print money (leads to more inflation).
  • Germany had to pay reparations to countries like France and Germany - £6,600 million.
  • 1922 - Germans said that they couldn't afford to pay more for the next three years.
  • France didn't believe them and sent her soldiers to the industrial area of the Ruhr in January 1923 to have her reparations by sequestering goods.
  • Weimar government began to print more money to pay France and Belgium as well as her own workers.
• • Value of Germany had fell very quickly.
  • 1923 - 300 paper mills and 2,000 printing works worked 24 hours a day to print enough money.
  • HYPERINFLATION in Germany because they were printing so much money. German money lost its value.
• Who suffered the most?

  • Working class - Poorer as they depended o wages that are already low.
  • The rich and landowners - Coping as their wealth was in land or overseas investments. Their debts disappeared by paying them in valueless paper.
  • The middle class - Great suffering as the depended on regular income. Also lost their savings.
• • Poverty - DESPAIR AND ANGER.
  • The poor were ready to support extreme groups and parties.
  • KPD encouraged people to start a revolution.
  • Hitler and the NSDAP saw their opportunity to grab the attention of the poor.
  • Cuno resigned on 12th of august 1923 - Gustav Stresemann was appointed in his place.