1. The effects of hyper-inflation and the French occupation of the Ruhr
L:O: To examine what effect these events had on German society and individuals

2. What caused hyper-inflation?
Reparations (compensation money paid by the German government to the French) meant that the German government was short of money
What effect did it have on the German economy?
What could the German government do?

3. Government printed so much money that it made it less valuable

4. What % increase is that (rate of inflation) between July – November?
Prices went up very quickly in Germany in 1923 – the price of bread in Berlin 1923
July ,465 marks
August ,000 marks
September ,512,000
October 1,743,000,000 marks
November ,000,000,000
What % increase is that (rate of inflation) between July – November?

5. Why were they printing more money?
French invasion of the Ruhr
Pay reparations
Why were they printing more money?
Germans went on General strike. The Weimar Republic said they would still pay them if they went on strike. Therefore, had to print more money.

6. 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?

7. 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.

8. Germany could not fight back militarily.
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.

9. 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.

10. 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?

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

12. RESULT OF HYPERINFLATION: Prices rose dramatically
E.g. in 1921 a loaf of bread cost 4 marks
(old German money) by 1923 it cost
marks!

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

14. 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 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.

15. The occupation of the Ruhr by the French
Why did the French invade the Ruhr?
Why didn’t the German government fight back?
How did the workers react to this?
How would the average German react to this?
Who would they blame?

16. How would hyperinflation affect the following people?
Fill out how the table would affect different people.

17. German character
P.18-P.20.
Positive/negative impact
Which group of people were effected the most (1-worst effected). Explain
A businessman
A middle class person with considerable savings in the bank.
A worker
Farmer
Pensioner
The rich
Challenge Task: ‘The Hyperinflation of 1923 was a disaster for all Germans.’
Point:
Evidence:
Explanation:

18. How would each of these people react? Who might they blame?

19. Write a speech against the government You will want to include complaints about: The Treaty of Versailles The occupation of the Ruhr The effects of hyperinflation

20. By the end of the lesson you will
Have notes and understand why the following key events happened
Hyper-inflation – impact on different groups
French occupation of the Ruhr
Why the French invaded
Why Hitler planned the Munich Putsch and why it failed