The Challenges of 1923

• When price of goods increases it is called inflation 
• When the price of goods increases dramatically it is called hyperinflation 
• In 1923, Germany had a terrible economic crisis 
• Problem; Hyperinflation made german currency worthless

1914-18

• Gov. printed more money to pay for WW1, but didn't have more gold- it was bankrupt 

1918-22

• Weimar gov. printed more money for post-war shortages 
• Asked for longer to pay first reparations installment 

Jan 1923

• French troops invaded the Ruhr to take reparations in goods & raw materials 
• German workers on strike 
• 80% of German coal, iron & steel reserves and their factories in the Ruhr 
• This occupation was disastrous for German economy 
• Weimar gov. printed more money to pay strikers & make up the loss of the production of goods & raw materials      German mark became useless as a result by Nov 1923 

• Some People couldn't afford essentials 
• Wages rose but prices rose quicker 
• Some businesses went bankrupt - taken over by the succesful ones 
• People with fixed incomes (pensioners) suffered most
• Savings became worthless - middle classes affected most 
• This was blamed on Weimar Gov- even more unpopular

• Because they were paid more for food- farmers benefitted  
• Some people/businesses could pay off loans and mortgages 
• Fixed rents for rooms/shops became very cheap 
• Foreigners could buy more for their money