social impacts of hyperinflation

what was the change in value of a loaf of bread from december 1918 to november 1923?

december 1918 - 0.5 marks

november 1923 - 2.1 trillion marks

how many thefts were there in 1923 as a result of desperation from the hyperinflation crisis?

800,000 incidents of theft in 1923 alone

bartering

trading goods for other goods rather than using money

looting

stealing goods, typically during a riot

how much of the workforce was fully employed in 1923? why?

• 29.3%

• companies had to reduce workers’ hours, wanted to keep them in their employ but not fully needed and couldn’t afford to pay them full time

how did foreigners benefit from the hyperinflation crisis?

• their money had not devalued like the german mark

• their foreign currency hold more value and demand

• could cross the border to buy german goods for less

why did pensioners suffer from hyperinflation?

• relied on fixed income given by the government that didn’t track with inflation

• income no longer covered living costs

• had to go to soup kitchens and charities for aid

• also affected those on war pensions and war widows

how were landlords affected by hyperinflation?

• suffered

• unable to raise rents to match price increases → became easy to pay rent as money became abundant, couldn’t raise prices to profit more from influx of cash

• their real income fell dramatically

how did unskilled workers suffer from hyperinflation?

• wage increased but didn’t increase with rising prices

• standard of living declined rapidly

• unemployment increased

• hours reduced → 1923 only 29.3% of workforce fully employed

how did the mittlestand suffer from hyperinflation?

• small business owners had costs increase faster than prices they charges

• taxes they paid did not fall despite lower profit margins

• lost savings → had to sell failing businesses

• became impoverished

• war bonds wiped out → paid back by the government in effectively worthless money

how did the sick suffer as a result of hyperinflation?

• cost of medical care increased

• rapid rise in food prices→increase in widespread malnutrition

what happened as a result of the poor living conditions and malnutrition caused by hyperinflation ?

• death rates in cities increased

• suicide rates increased

how did children suffer as a result of hyperinflation?

• childhood malnutrition increased

• cases of rickets and tb increased → associated with poor diets

what societal groups suffered the most from hyperinflation? (hint: there are 6)

• pensioners

• landlords

• unskilled workers

• the sick

• children

• the mittlestand

which societal groups gained the most from hyperinflation?

• black marketeers

• those with debts

• some businessmen

• tenants

• those with foreign currency

• farmers

how did black marketeers benefit from hyperinflation?

were able to buy up food stocks and sell them at vastly inflated prices

how did those with debts benefit from the hyperinflation crisis ?

• were able to pay off their debts easily, could pay what they owed using worthless currency

  • e.g. mortagages

how did some businessmen benefit from hyperinflation ?

• took out loans to buy out struggling competitors before repaying the loans when the currency had inevitably devalued further

  • e.g. hugo stinnes

how many companies did hugo stinnes own? how much of german industry was this?

• over 4500 companies (towards the end of the crisis?)

• 20% of german industry

  • included businesses, forests, newspapers and railways

how did tenants benefit from the hyperinflation crisis ?

the real value of rent they payed decreased

• benefitted those leasing properties on long term fixed rents

how did those with foreign currency benefit from the hyperinflation crisis?

• foreign currency didn’t devalue

• able to trade and barter using it, got more for their money than previously

what advantage did farmers have during the hyperinflation crisis?

had goods (held more value than money, more consistently) that they could barter with rather than rely on purchasing value of money

how did support for the weimar republic change because of hyperinflation?

• lost support of the mittlestand → lost hard earned savings and comfortable lifestyle

• blame for crisis transferred to the TOV and the government’s decision to sign it → dolchstosslegende

• greater support for anti-weimar groups grew → NSDAP, KPD, DNVP

how did the political support of the working class shift during hyperinflation?

• the crisis exacerbated their social and economic issues

• steady, gradual shift towards the KPD → radicalisation to the left increased

• enduring support for the KPD → largely permanent shift even after the crisis was over

how did the political support of the mittlestand change over the crisis?

• rapid but largely temporary shift towards the right → demonstrates susceptibility during economic hardship to radical, extreme solutions as they became disillusion with the weimar and sought stability and financial security

• did gradually return to typical voting patterns

• foreshadowed a future permanent change following the wall street crash

• became hostile to democracy and more strongly favoured authoritarian style of government

how did the political support of small business owners shift during the crisis?

• sharp, widespread, permanent shift towards extremist right wing parties

  • abandoned moderate politics → favouring DNVP, NSDAP

  • wanted government to restore order and stability

how did industrialists’ political support change during the crisis?

• became increasingly concerned with social unrest i.e. strikes, potential communist revolution

• indicating an inclination and susceptibility to Nazis in the future who were willing to protect them in times of economic crisis

  • looked to support a dictator (hugo stinnes) and funded NSDAP (thyssen and krupp) as a defence against communism

how did pensioners’ political support change during the crisis?

• rapid, substantial, largely permanent shift towards the right

• growing anti-republic sentiment, feelings of betrayal

how did farmers’ political support change during the crisis?

• continued, prolonged distrust of the weimar republic → cemented their support in conservative parties e.g. DNVP

• prevelant shift to further supporting right wing parties → believed weimar was too urban focused and neglected protection of rural interests

  • would later influence their support of the nazis who fuelled their feelings of national importance

how were other (non-german) social groups impacted by the shifts in political views?

• major shift in growth if resentment towards other nationalities

• steady growth in anti-semitism, continually exploited and fuelled by right wing groups