Hyperinflation

Ruhr

A rich industrial coalmining area

1922 - Germany could not afford the reparations bill

France and Belgium didn’t believe them and tried to take back what was owed

Jan 1923

60,000 of French and Belgium soldiers marched into the Ruhr

Passive resistance

Government ordered workers to strike

Soldiers became violent

over 100 were killed and 15,000 were thrown out of their homes as punishment

Government promised to continue paying workers but ran low on money

The Ruhr wasn’t producing coal, iron and steel because of the strike

In order to pay the striking workers

The government printed large amounts of money

The workers spent money quickly

Shopkeepers began to raise their prices

The gov. printed even more money

Prices went up faster

Effects of hyperinflation on old people

Pensions became worthless

Effects of hyperinflation on factory workers

Work 10 hours and have to carry wages in wheelbarrows

Effects of hyperinflation on factory owners

Companies going bust due to high unemployment

Effects of hyperinflation on farmers

Life savings become worthless

Effects of hyperinflation on rich people

No change in their lives - rich before, rich after

Effects of hyperinflation on small business owners

Normal trade became impossible due to daily price changes

Effects of hyperinflation on children

Difficult period for their parents - worried for the future

Positives of hyperinflation for factory workers

Paid a higher unemployment benefit

Positives of hyperinflation for debtors

Can pay off entire loans with one banknote

Positives of hyperinflation for factory owners

Became rich and owned more factories

Positives of hyperinflation for rich people

Increase in money is protected by previous wealth and assets

Positives of hyperinflation for small business owner

Unemployment benefits

Positives of hyperinflation for children

Banknotes were used to make kites and paper planes