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Germany After World War 1
Germany 1919-1933
Economic Problems….Hyper-Inflation 1923
The Golden Years 1924-29
Political Instability 1924-29
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 expandingSevere inflation occurred
Economic ProblemsSpring 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 ProblemsPeople 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… 163.15 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 1924-29
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 StresemannChancellor 1923, Foreign Minister 1923-29
Stresemann’s accomplishments 1924-29
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 1926Art, culture, and science thrived
Political Instability 1924-29
Following WWI, the main political parties in Germany were:
1. Communists2. Social Democrats3. 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 loansGerman businesses went bankrupt & people lost their jobsUnemployment jumped from 1.4 million in 1928 to 6 million by 1932
Unemployment line in Hanover 1930
Depression & UnemploymentHitler & 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
Party 1928 election 1932 election
Communists (KPD) 54 89
Socialists (SPD) 152 133
Nationalists (DNVP) 79 40
Nazis (NSDAP) 13 230
Others 175 117
German elections (number of seats)