problems in 1923 - Ruhr, hyperinflation

what problems were there in 1923?

• occupation of the Ruhr

• hyperinflation

• the Munich Putsch

why did French and Belgian troops march into the Ruhr?

• Germany were not keeping up with reparation payments

• the Ruhr was Germany’s most important industrial region

what did the workers do when the Ruhr was occupied?

• passive resistance

  • refused to make the goods the French and Belgian wanted

  • sabotaged factories

  • flooded mines

but this meant Germany was losing all that the Ruhr would usually have produced

what was the solution to the occupation of the Ruhr?

Chancellor Stresemann called off the passive resistance

how did hyperinflation occur?

• the German government did not have enough to pay for the cost of the passive resistance in the Ruhr

• so they printed more money

what problems occurred as a result of hyperinflation?

• value of money dropped

• pensions and savings were lost

  • middle class and elderly suffered badly

• November 1923 = bread cost 201 billion marks