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What is the man sweeping up?

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Presentation on theme: "What is the man sweeping up?"— Presentation transcript:

1 What is the man sweeping up?
WHY? Why are the people in the background so fascinated to watch? The man is sweeping up deutsche marks (bank notes). This is because money has become worthless to the extent that people are just throwing it away. People are fascinated because this scene is really unusual. As the hyperinflation crises worsened people used money for various things other than method of payment.

2 The Big Picture: The rise of the Nazis
Key Vocabulary Republic Constitution Armistice Treaty Uprising Depression Propaganda How did the Weimar Republic recover in the years ? THE RISE OF THE NAZIS Recap of the overall big picture from lesson 1. What problems did the Weimar Government face in the years ? . Why did support for the Nazis grow in the period ?

3 Todays Lesson To what extent was hyperinflation a crisis for Germany?
Key Vocabulary Hyperinflation Reparations Passive resistance Occupation To what extent was hyperinflation a crisis for Germany? Understand why the French occupied the Ruhr in 1923 and how this led to hyperinflation Today’s lesson title and objectives. Needs to be recorded by students. Recall the terms of the Treaty of Versailles . Identify the winners and losers of the hyperinflation crisis

4 We told you so… WELL IN 1923 THAT FEAR OF
Remember at the end of lesson two when you considered why the Germans hated the treaty so much??? You may recall that one of the terms the Germans despised so much was the reparations. They disliked this clause because: They did not see why they should be the only ones to pay for the damage caused by the war They feared that the high payments would ruin them financially. WELL IN 1923 THAT FEAR OF FINANCIAL RUIN BECAME A REALITY! Talk through slide with students. Opportunity to recall the terms of ToV.

5 Timeline to financial turmoil
1919: Germany is short of money after the war. They print more notes leading to some inflation. 1922: Germany struggle to keep up with the high demands of reparation payments. Late 1922: German government misses its first payment. January 1923: French troops invade the Ruhr – an area at the heart of German industry. The aim was to take goods equivalent to the value of the missed payments. 1923: German government support workers in a ‘passive resistance’ (armed resistance would have further broken the terms of the Treaty of Versailles). Workers in the Ruhr strike – there is some sabotage of machinery in factories. 1923: The government continue to pay workers in the Ruhr despite the loss of revenue from this area. There is an increase in support for the Weimar Government as a result of their support for the ordinary man. 1923: The government runs out of money and so prints more. This leads to inflation (a natural economic process). However, this continues and continues, which leads to hyperinflation (A much speedier process), which eventually made German money worthless. For discussion with students. You may wish to print this slide out and allow students to highlight key words etc.

6 Summary of the problem:
No goods produced in the Ruhr Lost all the money the Ruhr usually produces Prints more money Simple diagram which students could copy to demonstrate why the Ruhr was key in the hyperinflation crisis.

7 Why does printing more money cause a problem?
A country’s currency (money) is determined by how much gold they own. This is called gold reserve, and how much they own determines how much paper money and coin they can produce. Lets say as an example that each bar of gold is worth £100. Based on the 6 bars here, £600 worth of paper and coin money could be produced. Occasionally, money is lost or damaged, and new coins or notes have to be produced. This is hard to guess, so it is impossible for a country to always have exactly £600 currency. It may be just over. This is quite natural, and referred to as inflation. Talk through slide with students. When money is printed too quickly it outgrows the worth of the gold reserve. Eventually the value of money becomes less and less, until it is worthless. This process is referred to Hyperinflation.

8 Why does printing more money cause a problem?
Visual demonstration of hyperinflation.

9 What did this look like in reality?
Hand out the source sheet. Each source is placed individually on its own slide for discussion. Explain to students that this links to the 4 mark source question at the start of the exam paper. They need to say what they can see – then use all 5 sources to make a judgement about what can be learnt about hyperinflation.

10 What does this tell us about hyperinflation?
What can you see? Source A: Children playing with whole blocks of money to build a tower. One of the most powerful images of the time demonstrating how money was so worthless that parents were prepared to allow their children use it as a toy. Moreover, the children appear content and under no threat from having the money snatched away from them. What does this tell us about hyperinflation?

11 What does this tell us about hyperinflation?
What can you see? 10 million DM note, printed in November This was the height of the crisis and the real turning point that something needed to be done to resolve the money crisis. Printing presses could not keep up with the demand for notes, and prices of goods in shops were changing by the minute. What does this tell us about hyperinflation?

12 What does this tell us about hyperinflation?
What can you see? This man is papering his walls with money. This was actually more economically viable than buying wallpaper, which had risen to a cost of several thousand DM. What does this tell us about hyperinflation?

13 What does this tell us about hyperinflation?
What can you see? Office workers carrying a basket of money – this is their weekly wage. Often people went straight to the shops to buy their shopping before prices changed again! What does this tell us about hyperinflation?

14 What does this tell us about hyperinflation?
What can you see? A women feeding bank notes into a hob to create a small fire for cooking with. Such was the value of money that it was more cost effective to burn it to generate heat or fuel for cooking. What does this tell us about hyperinflation?

15 How did Hyperinflation affect the German people?
There is no straightforward answer to this! Quite simply, hyperinflation affected different people in different ways! Using pages of your textbook, complete the boxes of the flowchart to show who the real winners and losers of hyperinflation were. Students use the winners and losers worksheet saved in the folder with this PowerPoint. They will need the blue Life in Germany text (Waugh and Leonard). They may need some assistance with considering the impact – get them to think about the affect this might have had on their lives, or indeed their views about the Weimar Government.

16 Plenary: This can be done through any method you see fit so long as TILT time is built in to the last part of the lesson. Today I learnt that….?


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