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Lesson Focus/Question:
In this lesson, you will:
-invasion and hyperinflation
Syllabus Dot Point:
Weimar public
Political economic and social issues in Weimar republic to 1929
Summary:
Invasion of the Ruhr
In the treaty of Versailles, Germany had to agree to pay for war damages, or reparations. The sum was 132 billion to be paid in equal installments every year until 1987 and had no choice in the matter as it would either the would have to pay or the allies would invade. The new government after the first government refused to agree to the treaty managed to pay the first installment of two billion marks and some of it was paid in the form of gold, the rest was in the form of coal, iron and wood. However, that was all Germany could pay. Germany in 1922 failed to pay the second instalment. The French refused to believe it and decided to take what Germany owned by force. The invaded Germany and occupied the Ruhr valley, the richest industrial area. And in within days was divided into 5 divisions for the French and a division for Belgium. The took over coalmines, railways, factories, steel works and set up machine-gun posts overlooking town squares. And so the government told the Ruhr workers not to work for the French- to put up a passive resistance. However, in some cases the French responded with tough measures for example when the Krupp steel workers refused to work the French opened fire, killing thirteen and wounding many more.
Hyperinflation
As the richest part of Germany was no longer producing goods, so the rest of the country suffered as well. Second, the people who were expelled from their homes had to be fed and housed by the government since it had ordered the ‘passive resistance’ in the first place. Yet it had no money to do this. To attempt to solve these problems, the government began printing large amounts of money, but this only caused prices in the shop to rise. The more money the government printing caused...