Germany After World War 1

Germany Economic Problems….Hyper-Inflation 1923 The Golden Years Political Instability Depression & Unemployment 1930

Economic Problems: Hyper-Inflation Germany borrowed to finance WWI instead of taxing citizens. Following WWI most govt. income was used to pay off the debt & reparations. Govt. printed money to pay debt even though the economy was not expanding Severe inflation occurred

Economic Problems Spring 1922…300 marks = 1 US dollar Early 1923…50,000 marks = 1 US dollar Wages were often carried home in wheel barrels full of almost worthless paper money

Economic Problems People began to barter / trade goods/services instead of using money Paper money dropped in value forcing the German Govt to print paper money (over 300 paper mills working 24 hrs a day)

The rising price of bread in post-war Germany. 1918… 0.63 marks 1922… marks Jan 1923… 250 marks July 1923… 3,456 marks Sept 1923… 1,512,000 marks Nov 1923… 201, 000, 000,000 marks Hyper- Inflation…bread

1914… 0.90marks 1921… 1.60 marks 1922… 7 marks July 1923… 5,000marks Sept 1923… 4,000,000 marks Nov 1923… 320,000,000,000 marks Hyper- Inflation…eggs

I went into a café for a coffee. I noticed that the price was 5000 marks, which is roughly what I had in my pocket. I drank my coffee and read the paper. When I asked for the bill, it was 8000 marks. The value of the mark had fallen in the space of one hour! Memories of a German Writer Hyper-Inflation

Two women were carrying a laundry basket full of banknotes. They put the basket on the ground while they tried to buy something from a shop. When they got back, the money was still there, but the basket had been taken. Memories of a German Writer Hyper-Inflation

The Golden Years Economic stability returned largely due to the policies of Gustav Stresemann. He stabilized the German economy following the year of crises in 1923, which included the invasion of the Ruhr by the French, hyperinflation, communist uprisings and the Beer Hall Putsch (started by Hitler in Munich) Gustav Stresemann Chancellor 1923, Foreign Minister

Stresemann’s accomplishments Ended hyperinflation by introducing a new currency backed by US gold. Restarted reparation payments in return for US loan assistance. This led to investment and growth in German companies (BAYER, BASF, Lufthansa) Germany invited to join The League of Nations in 1926 Art, culture, and science thrived

Political Instability Following WWI, the main political parties in Germany were: 1.Communists 2. Social Democrats 3. National Socialists (NAZIS) This resulted in minority governments ( a total of six during this period.)

Depression & Unemployment 1930 US consumers were no longer in need of German products US banks could no longer lend the German govt & businesses money to rebuild from WWI and called in their loans German businesses went bankrupt & people lost their jobs Unemployment jumped from 1.4 million in 1928 to 6 million by 1932 Unemployment line in Hanover 1930

Depression & Unemployment Hitler & the Nazi party said……. “ Believe me, our misery will increase! The government itself is the biggest swindler & crook. People are starving on millions of marks! We will no longer submit!. We want a dictatorship.” “ Our last hope” – Nazi election poster

Hitler becomes Chancellor of Germany 1933 Party1928 election1932 election Communists (KPD)5489 Socialists (SPD) Nationalists (DNVP)7940 Nazis (NSDAP)13230 Others German elections (number of seats)