Economic and Social Issues in Germany, 1919 – 1924

• Why did Germany finance the war by printing more money?  

  They believed they would win the war and then enforce high reparations on their enemies. 
• How much debt did the Weimar Republic face in 1919? 

  1.5 billion marks. 
• Give a reason why the Republic didn’t increase taxes or reduce spending. 

  -Alienated support for republic as anti-republicans would claim the tax is for reparations 

  -Civil servants needed to be paid, and they didn’t want to make them redundant 
• Compare Germany’s unemployment figures in 1921 to Britains.  

  1921 – 1.8% compared to Britain’s 17%! 
• What was the time limit given to accept the terms of the Treaty of Versailles? 

  6 days. 
• When did the French-Belgian troops occupy the Ruhr? Why? 

  January 1923 – because Germany fell seriously behind in its payment of reparations to France in the form of coal. 
• What was Chancellor Cuno’s plan in retaliation to the occupation of the Ruhr? Give 2 ways.  

  -Responded by stopping reparation payments 

  -Ordered passive resistance (no one in the area would cooperate with the French)  

  -Paramilitary groups to sabotage the French 
• How many Germans were expelled from the Ruhr or shot by the French? Name 1.  

  150,000 expelled 

  132 shot and killed 
• Name two ways the Ruhr occupation led to hyperinflation. 

  -Paying wages or providing goods for striking workers drained government finances 

  -Tax revenue lost from closed businesses and unemployment 

  -Germany had to import coal and pay for it from limited foreign currency reserves 

  -Shortages of goods pushed prices up 
• What was the effect of rising food prices? Give 2 examples. 

  -There were food shortages as supplies were hoarded 

  -Breakdown of law and order as there were food riots 

  -Gangs began to steal from farmers 

  -People bartered their possessions in exchange for vital supplies 
• Describe 2 Weimar reforms made for social welfare and employment rights. 

  -Law passed limiting the working day to a maximum 8 hours 

  -State health insurance system extended from employed workers to wives, daughters and the disabled 

  -Aid for war veterans incapable of working because of injuries 

  -Aid for war widows and orphans 

  -National Youth Welfare Act required local authorities to set up youth offices for child protection and a right to education 
• Who were the winners of hyperinflation? Give 2 examples. 

  People in debt, renters, black-marketeers, most farmers. 
• Who were the losers of hyperinflation? Give 2 examples. 

  Pensioners, war widows, landlords, artisans and small business owners, unskilled workers, the sick.