 What is going on here?

WEIMAR MELTDOWN  REVOLUTIONS AND CRISES  HYPERINFLATION

CRISES  By 1920 the new democratic Weimar Republic was in serious trouble: People were very angry about the Treaty of Versailles – They felt it was a HUMILIATION for Germany to sign. Many blamed the new democratic Government for surrendering The Government was seen as WEAK and INEFFECTIVE

KAPP PUTSCH  Previously the Spartacist rising had been beaten in 1919 by the Right wing Free Corps.  Now in 1920 the FREE CORPS itself tried to take over in a PUTSCH. (Revolt)  They were led by Wolfgang Kapp.

KAPP PUTSCH  Over 5,000 supporters marched on Berlin to set up a RIGHT WING government based on the old Germany  The Weimar Government however called the major services (Gas Electric, Water, Transport) out on STRIKE and the without these Kapp’s Putsch ended.

1923 ECONOMIC TROUBLES  Following the War Germany was economically damaged. Under Versailles its valuable Iron industry was reduced 50%! Its coal output by 16% AND Germany had to pay huge Reparations!! £6.6 Billion in equal instalments for 66 years!

Can they pay?  Germany struggles to pay the first few instalments owed. They pay £2Billion gold marks in 1921 to Belgium and France.  In January 1923 Germany says it cannot afford to pay any more

Invasion  Belgium and France do not believe the German claim and invade the rich industrial Ruhr district of Germany

Passive resistance  The German response to this was to urge PASSIVE RESISTANCE. Workers were encouraged not to work on behalf of the French and Belgians  The French were tough and over 100 strikers were killed and 150,000 made homeless

GERMAN RESPONSE  The German Government supported the workers by paying them with printed money.  HOWEVER They were not getting the rich income from the Ruhr mines and Industry  The result of this was rampant INFLATION – (Increase in prices to match the supply of money making the German currency gradually worthless)

HYPERINFLATION  Prices went up so fast that workers were being paid TWICE a day !!  Prices of goods like bread could spiral in a day  People had to carry their money in wheelbarrows

Results  By November 1923 the German currency was worthless.  Many Germans savings were ruined  Small businesses collapsed  Old peoples pensions were ruined  They blamed the Weimar Government for the disaster

A Chance for a takeover?  One person thought it was time to act to make a new Germany!