Hyperinflation

Cause and effect timeline of the occupation of the Ruhr

• Germany can’t keep up with reparation payments

• French and Belgian troops occupy the Ruhr

• Weimar Government orders passive resistance in the Ruhr

• Weimar government continues paying the workers on strike in the Ruhr

• Weimar government prints more money

• This decreases the value of German marks

• End with hyperinflation

Who wins hyperinflation?

• farmers who can sell food for extremely high prices

• people with investments/assets

Who loses in hyperinflation?

• basic goods for the working class become extremely expensive

• middle class savings become worthless

• people on government support/benefits and fixed incomes

Explain how hyperinflation led to increased support for extremist parties such as the Nazis (PEEL)

• Hyperinflation damaged confidence in the Weimar Republic because it was a reflection of the Government's incompetence and poor decision making in a scenario of emergency.

• Hyperinflation was caused by the Weimar Government having not paid reparations to France and Belgium in time, despite the government having signed the Treaty of Versailles, agreeing to pay the reparations.

• This led to French and Belgium troops occupying the Ruhr for compensation, which led to the Weimar Government ordering passive resistance in the Ruhr, whilst continuing to pay the strikers by printing more money.

• This meant that the value of German marks significantly decreased, portraying the incompetence of the Weimar government which instilled a lack of confidence in the Weimar Republic, specifically from the working and middle class who would have lost their savings, and also people on Government benefits or fixed incomes.

• This resulted in an increased support for alternative parties, including extremist parties.