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Challenges and recovery: the impact of economic problems, 1923-1929.

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Presentation on theme: "Challenges and recovery: the impact of economic problems, 1923-1929."— Presentation transcript:

1 Challenges and recovery: the impact of economic problems, 1923-1929

2 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

3 1923 Year of Crisis Vja-g&feature=related Vja-g&feature=related

4 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?

5 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.

6 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.

7 What were the effects of the invasion? It united the German people against the French invaders. The Weimar Republics 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. RESULT: HYPERINFLATION!!!

8 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?

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

10 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!

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

12 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. George Grosz 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.

13 Still unsure about hyperinflation? Click on this link: wOz8 wOz8

14 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. 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.

15 The effect of hyperinflation Remember not everyone was affected there were winners and losers. LOSERSWINNERS 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.

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

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

18 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)

19 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 Hitlers trial and imprisonment.

20 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.

21 Hitler in prison Hitlers book written in prison; My Struggle

22 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

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

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

25 End of WW1 Germany surrenders New German gov (democracy) Spartacist revolt (Communists) Treaty Of Versailles signed Kapp Putsch (right wing revolt) Reparations set at £6.6 billion Germans fall behind with reparations German gov resigns French occupy the Ruhr Ruhr workers strike Stresemann becomes Chancellor Stresemann calls off strike Dawes Plan Hitler revolt (Munich/ Beer Hall Putsch) New currency –Rentenmark 192019211923192419191922 The Weimar Republic – the first 6 years HYPERINFLATION

26 Wheres 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.

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