The Invasion of the Ruhr and Hyperinflation

Bankruptcy

Germany had spent all of its money in the war and it had lost places where they made money. By 1923 they couldn’t make the payments

December 1922

The Germans failed to pay the French coal and the French sent troops in to claim the coal and machinery for themselves. However the government told the coal workers to passively resist this and the citizens went on strike.

The Germans didn’t resist for long as the French just sent in their own workers and took the resources as they had a 700,000 man army. This made the government look weak again and the people heavily criticised this

Hyperinflation Cause

Governments overprinting of money lead to each note devaluing because of paying for the strikers who resisted the French. War effort, food shortages

bread

in 1919 a loaf of bread cost 1 m

By 1922 it cost 100 m

And by 1923 it cost 200,000 billion marks

Hyperinflation

People began to trade goods rather than use worthless money and wages increased but nowhere near at a fast enough rate to keep up with inflation. People had to burn their money to stay warm

Winners

Those who had debt or loans were able to pay them off easy

Farmers were paid well

Fixed rents became very cheap

Losers

People with savings suffered as their money became worthless

Pensions

Fixed incomes

Companies became bankrupt

Foreign countries stopped using marks

Weimar failure

Harmed almost everyone

Extremists gained support