The Occupation of the Ruhr (1923) + Hyperinflation

Why did France and Belgium occupy the Ruhr?

Germany failed to pay a reparations installment (telegraph poles/coal).

When did the occupation begin?

January 1923.

Why was the Ruhr important?

It was the industrial heartland of Germany (coal, iron, and steel).

What was "Passive Resistance"?

The German government's policy of telling workers to go on strike and not help the French.

How did the French respond to Passive Resistance?

They arrested leaders and brought in their own workers to run the mines.

What was a negative effect of the occupation?

It killed the German economy, as the government had to pay striking workers while losing production, eventually resulting in hyperinflation.

How many French soldiers occupied the Ruhr?

Roughly 750,000.

What caused the government to print more money?

Paying for Passive Resistance in the Ruhr and existing war debts.

Define "Hyperinflation."

When prices rise so fast that money becomes worthless.

Give an example of price rises in 1923

A loaf of bread cost 250 marks in Jan 1923; by Nov 1923, it was 201 billion marks.

Who was the biggest loser of hyperinflation?

The middle class (savings and pensions became worthless).

Who benefited from hyperinflation?

People with big debts or mortgages (they could pay them off for the price of a matchstick).

What was the social impact of hyperinflation?

Increased crime, malnutrition, and a total loss of faith in the Weimar Republic.

How did people pay for goods during hyperinflation?

Bartering (swapping goods) or using wheelbarrows of cash.

How did the government solve hyperinflation?

Stresemann introduced a new currency, the Rentenmark.