Challenges and recovery: the impact of
economic problems, 1923-1929
Learning objectives:
By the end of this lesson:
I will be able to describe the events of
1923
I will be able to explain why 1923 is a year
of disaster for the Weimar Republic
I will be able to evaluate the significance of
the events of 1923 on the Weimar
Republic
1923
Year of Crisis
• http://www.youtube.com/watch?v=18WlSb
Vja-g&feature=related
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?
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.
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.
What were the effects
of the invasion?
• It united the German people against the
French invaders.
• The Weimar Republic’s popularity increased
for a short time. RESULT:
• BUT it had disastrous
consequences for the
HYPERINFLATION!!!
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.
Hyperinflation 1923
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?
What caused hyperinflation?
WW1
German
gov print more
money to pay for war
Strikers spend
money quickly
Prices rise
As prices rise
more money is
printed
Prices rise
and so on…
Weimar Republic:
Shortages and
Reparations:
Print more money
Strikers need paying
Print more money
French occupation
of the Ruhr
Passive resistance:
Worker strike
Nothing being produced.
Who do you
think gets the blame
for the economic
disaster?
RESULT OF HYPERINFLATION:
Prices rose dramatically
E.g. in 1921 a loaf of bread cost 4 marks
(old German money) by 1923 it cost
201 000 000 000
marks!
Women waiting in line in Berlin, in hopes of buying
sub-standard meat, 1923.
By 1923 money was useless
It had lost its value.
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.’
Still unsure about
hyperinflation?
Click on this link:
• http://www.youtube.com/watch?v=WI1i5yh
wOz8
Describe the effects of
hyperinflation in Weimar Germany in
1923. 9 marks
Make notes from pages 18-21 (Edexcel
book) that will help you answer this
question for homework.
Think about the effect on the economy, on
the popularity of the government and who
would be the winners and losers.
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 10 000
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.
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.
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.
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)
http://www.youtube.com/watch?v=_Q-6H4xOUrs
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.
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.
Hitler in prison
Hitler’s book written in
prison; ‘My Struggle’
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
Most importantly
Hitler changes the
Nazi party from a
revolutionary group to
a political party
seeking peoples votes
even though he
despised democracy
Signing of
Armistice 1918
Summary
‘Nov Criminals’
Treaty of Versailles
‘Stab in the back’
Poor support for
Government and
democracy
Spartacists Revolt 1919
Kapp
Putsch
1920
Problems faced by the
Weimar Republic 1919 to
1923
Ruhr Crisis
1923
Hyperinflation 1923
Munich (Beer
Hall) Putsch
1923
Economic
problems,
food
shortages etc
Weimar
Constitution
– PR and
Article 48
End of
WW1
Germany
surrenders
1919
The Weimar Republic – the first 6 years
Treaty
Of
Versailles
signed
1920
Spartacist
revolt
(Communists)
New German
gov
Kapp Putsch
(democracy)
(right wing
revolt)
Reparations set
at £6.6 billion
Ruhr workers
strike
1921
1922
New currency
–Rentenmark
Stresemann
calls off strike
1923
Stresemann
becomes
Chancellor
Germans fall
behind with
reparations
Hitler
revolt
German
French occupy
the Ruhr
1924
gov
resigns
HYPERINFLATION
(Munich/
Beer
Hall
Putsch)
Dawes
Plan
Where’s the mistake
Each have these statements need correcting.
Write down the corrected statement.
1. The French invaded the Ruhr in 1923 in
revenge for WW1.
2. Inflation had not been a problem until the Ruhr
Crisis.
3. One result of hyperinflation was that the
government printed more money.
4. The Nazi Party were blamed for the
hyperinflation crisis.