Presentation on theme: "Challenges and recovery: the impact of economic problems,"— 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 1923I will be able to explain why 1923 is a year of disaster for the Weimar RepublicI will be able to evaluate the significance of the events of 1923 on the Weimar Republic
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? 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.
8 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? French occupationof the RuhrWeimar Republic:Shortages andReparations:Print more moneyWW1Germangov print moremoney to pay for warStrikers spendmoney quicklyPrices riseStrikers need payingPrint more moneyPassive resistance:Worker strikeNothing being produced.As prices risemore money isprintedPrices riseand so on…Who do youthink gets the blamefor the economicdisaster?
10 RESULT OF HYPERINFLATION: Prices rose dramatically E.g. in 1921 a loaf of bread cost 4 marks(old German money) by 1923 it costmarks!
11 Women waiting in line in Berlin, in hopes of buying sub-standard meat, 1923. By 1923 money was uselessIt 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.‘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:
14 Describe the effects of hyperinflation in Weimar Germany in 1923 Describe the effects of hyperinflation in Weimar Germany in marksMake notes from pages (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.LOSERSWINNERSPeople 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.
16 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.
17 Reasons for the Munich Putsch Hitler wanted tooverthrow the WRDiscontent inGermanyReasons for the Munich PutschInfluence of MussoliniItalian dictator.The Rise of theNazi party.Bavarian leaders –had been plottingagainst gov –Hitler thought theywould 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 Hitler’s trial and imprisonment.
20 It could be argued that it was not a failure after all. What happened toHitler and theNazi Party afterthe 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’s book written in prison; ‘My Struggle’ Hitler in prisonHitler’s 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 bannedCreates the SS to be his personal bodyguardSets up Party offices nationallyGains financial support from industrialistsIncreases 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 Problems faced by the Weimar Republic 1919 to 1923 SummarySigning of Armistice 1918‘Nov Criminals’Treaty of Versailles‘Stab in the back’Spartacists Revolt 1919Kapp Putsch 1920Poor support for Government and democracyProblems faced by the Weimar Republic 1919 to 1923Economic problems, food shortages etcRuhr Crisis 1923Weimar Constitution – PR and Article 48Hyperinflation 1923Munich (Beer Hall) Putsch 1923
25 HYPERINFLATION End of WW1 Germany surrenders The Weimar Republic – the first 6 yearsTreatyOf Versailles signedReparations set at £6.6 billionNew currency –RentenmarkRuhr workers strikeStresemann calls off strike191919201921192219231924Stresemann becomes ChancellorSpartacist revolt (Communists)Germans fall behind with reparationsHitler revolt(Munich/Beer Hall Putsch)New German gov(democracy)GermangovresignsKapp Putsch(right wing revolt)French occupy the RuhrHYPERINFLATIONDawes Plan
26 Where’s the mistakeEach 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.