Background context……… Year 11 Assessment ‘Germany 1918-45’ Nov 1918 – Signing of the armistice (PEACE TREATY) to end WW1. What is Hyperinflation? Inflation is when money loses its value, so you need more money to pay for the same thing. Nov 1918 –Weimar Republic begins as the new government of Germany (after Kaiser leaves!) June 1919 – Signing of the Treaty of Versailles, This punishes Germany for starting WW1. November 1923 – Hitler’s failed attempted takeover in Munich. 1922 – Germany cannot pay the reparations back to France. Government still pays workers on strike. Costly as nothing being made in Ruhr! Hyperinflation is inflation that is very high and out of control; prices increase fast and by enormous amounts. German government tell workers to go on strike – 140 Germans still killed. The government prints more money to pay its debts! Using ‘paper money’ as fuel for the stove as it’s cheaper than coal! Children using paper money as building blocks! • • • Chancellor of Germany from 1923. Foreign Minister too (deals with other countries). Period in charge called ‘the golden twenties.’ Died just before the Wall St Crash caused disaster! Stresemann the Saviour! The price of a loaf of BREAD Why the Ruhr? Important industrial area of Germany – plenty of mines, factories and railways. France does not believe this. 1923 – 60,000 French troops march into the Ruhr. • Did I build a strong Germany? Nov 1918 1 mark Nov 1922 163 marks Sep 1923 1,500,000 marks Nov 1923 200,000,000,000 marks Winners Losers People could pay debts off easily! Savers lost everything. Businessmen could pay off business loans easier. Pensioners lost all of their savings. Election posters like this were funded in part by the money donated from rich businessmen! Workers could not afford food due to rising cost of food prices. Results of the 1932 election 1st – Social Democrats 2nd – Nazis 3rd - Communists I offered work (jobs for all), bread (food) and freedom (from democracy!) July 1932 – Nazis are largest party in Reichstag (37% of vote) 1923 Told the striking workers in the Ruhr to go back to work. 1924 Accepted the Dawes Plan from the USA which involved a cash loan to Germany Given longer to pay the reparations payments. 1924 Had all the worthless paper (Hyperinflation) money destroyed and introduced a new currency. 1925 Locarno Pact – agreement with other nations that they would not invade each other. 1926 Germany joined the League of Nations giving it (trusted) great power status 1929 The Young Plan – reparations reduced by three quarters the amount and given longer to pay them. Hitler didn’t become Chancellor (YET!) - Hindenberg won the second vote with 53% of the vote but DID NOT have a majority! Nazis given money by businessmen who are desperate to keep the Communists (3rd most popular party) out of power in case they take their businesses from them! Pays for Nazis huge propaganda campaigns (private plane to fly Hitler around Germany!) as well as the poster campaigns.
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