1. Challenges and recovery: the impact of economic problems, 1923-1929
By the end of this lesson you should able to:
To understand the causes and effects of the hyperinflation of 1923
To explain the importance of the Munich Putsch of 1923

2. The Ruhr Crisis1923 The Ruhr Why did France invade the Ruhr in 1923?
What did the German workers do as a result?
Who would be most damaged, France or Germany?

3. The Ruhr Crisis – why?
The German government had been unable to make its first reparation payment in 1922 (Treaty of Versailles).
The consequence of this was the French marched into the Ruhr hoping to get payment in kind.

4. How did Germany react? Germany could not fight back militarily.
So the workers chose passive resistance, going on strike and refusing to work for the French.

5. What were the effects of the invasion?
RESULT:
HYPERINFLATION!!!
It united the German people against the French invaders.
The Weimar Republic’s popularity increased for a short time.
BUT it had disastrous consequences for the German economy.
The government printed more money to pay the strikers which increased inflation.
The strike meant fewer goods were made and this made inflation worse.

6. What is hyperinflation?
When a government prints too much paper money it loses its value quickly.
Hyperinflation is when prices rise very high very quickly.
Money soon became worthless.
LOOK AT THESE IMAGES – WHAT ARE THEY DOING WITH THE BANK NOTES?

7. What caused hyperinflation?
French occupation
of the Ruhr
Weimar Republic:
Shortages and
Reparations:
Print more money
WW1
German
gov print more
money to pay for war
Strikers spend
money quickly
Prices rise
Strikers need paying
Print more money
Passive resistance:
Worker strike
Nothing being produced.
As prices rise
more money is
printed
Prices rise
and so on…
Who do you
think gets the blame
for the economic
disaster?

8. RESULT OF HYPERINFLATION: Prices rose dramatically
E.g. in 1921 a loaf of bread cost 4 marks
(old German money) by 1923 it cost
marks!

9. Women waiting in line in Berlin, in hopes of buying sub-standard meat, 1923.
By 1923 money was useless
It had lost its value.

10. During the inflation years, people who had saved their money in banks or were living on pensions or disability checks found themselves bankrupt. Those with jobs found that their salary increases could not possibly keep up with the almost instantaneous rise in prices. Artist George Grosz described what shopping was like in those days.
‘Lingering at the [shop] window was a luxury because shopping had to be done immediately. Even an additional minute meant an increase in price. One had to buy quickly because a rabbit, for example, might cost two million marks more by the time it took to walk into the store. A few million marks meant nothing, really. It was just that it meant more lugging. The packages of money needed to buy the smallest item had long since become too heavy for trouser pockets. They weighed many pounds People had to start carting their money around in wagons and knapsacks. I used a knapsack.’

11. The effect of hyperinflation
Remember not everyone was affected there were winners and losers.
LOSERS
WINNERS
People with savings in the bank. Some people had saved all their lives only to find their savings would only buy them a loaf of bread.
Old people on fixed pensions found they could not afford what they needed.
Many small businesses collapsed because normal trade became impossible.
People who had borrowed money now found it easy to pay off their debts. If they had borrowed marks they could now pay it off with one bank note.
Farmers benefitted from price rises.
The very wealthy who had land were largely protected from the worse effects.

12. Still unsure about hyperinflation?
Click on this link:

13. Why did Hitler carry out The Munich Putsch 1923
Hitler and the Nazi’s took advantage of the chaos caused by the Ruhr crisis and staged a revolt in Munich.
It failed and Hitler was arrested.

14. Reasons for the Munich Putsch
Hitler wanted to
overthrow the WR
Discontent in
Germany
Reasons for the Munich Putsch
Influence of Mussolini
Italian dictator.
The Rise of the
Nazi party.
Bavarian leaders –
had been plotting
against gov –
Hitler thought they
would support him.

15. How had Hitler become leader?
Hitler had become leader of the NSDAP (Nazis) in 1921.
He had created an identity for the party.
He showed a talent for public speaking.
He created the 25 point plan.
He formed the SA (BROWNSHIRTS)

16. The Nazi Party Change Hitler made Purpose
Change name to National Socialist German Workers Party (NSDAP)
Designed the swastika flag
Set up SA (brown shirts)
Came up with 25 point programme
Bought a newspaper:
Munich Observer

17. Hitler at a rally in 1934 – you can see how effective the Swastika symbol was to become.

18. Was the Munich Putsch a failure?
In November 1923 Hitler and the Nazis felt the time was right to stage their uprising and try to take over the government.
They under estimated the support they would receive.
The putsch failed and led to Hitler’s trial and imprisonment.

19. It could be argued that it was not a failure after all.
What happened to
Hitler and the
Nazi Party after
the Munich Putsch?
It could be argued that it was not a failure after all.
Hitler could have been executed for treason but was given a 5 year sentence of which he served 9 months.
He spent his time in prison writing Mein Kampf (My Struggle) and reconsidering his tactics.
He realised the only way to power was to be voted in democratically, then destroy democracy.

20. Hitler’s book written in prison; ‘My Struggle’
Hitler in prison
Hitler’s book written in prison; ‘My Struggle’

21. What changes to the Party did Hitler make after his release from Prison?
Reforms party after it had been banned
Creates the SS to be his personal bodyguard
Sets up Party offices nationally
Gains financial support from industrialists
Increases party membership to over 100,000 by 1928

22. Most importantly Hitler changes the Nazi party from a revolutionary group to a political party seeking peoples votes even though he despised democracy

23. Problems faced by the Weimar Republic 1919 to 1923
Summary
Signing of Armistice 1918
‘Nov Criminals’
Treaty of Versailles
‘Stab in the back’
Spartacists Revolt 1919
Kapp Putsch 1920
Poor support for Government and democracy
Problems faced by the Weimar Republic 1919 to 1923
Economic problems, food shortages etc
Ruhr Crisis 1923
Weimar Constitution – PR and Article 48
Hyperinflation 1923
Munich (Beer Hall) Putsch 1923

24. HYPERINFLATION End of WW1 Germany surrenders
The Weimar Republic – the first 6 years
Treaty
Of Versailles signed
Reparations set at £6.6 billion
New currency –Rentenmark
Ruhr workers strike
Stresemann calls off strike
1919
1920
1921
1922
1923
1924
Stresemann becomes Chancellor
Spartacist revolt (Communists)
Germans fall behind with reparations
Hitler revolt
(Munich/Beer Hall Putsch)
New German gov
(democracy)
German
gov
resigns
Kapp Putsch
(right wing revolt)
French occupy the Ruhr
HYPERINFLATION
Dawes Plan

25. Where’s the mistake
Each have these statements need correcting. Write down the corrected statement.
The French invaded the Ruhr in 1923 in revenge for WW1.
Inflation had not been a problem until the Ruhr Crisis.
One result of hyperinflation was that the government printed more money.
The Nazi Party were blamed for the hyperinflation crisis.

26. Create a power point… …about the Munich (Beer Hall Putsch) Include:
Reasons for the putsch
What actually happened
The consequences of the putsch for the Nazis and Germany.