Germany After World War 1

Germany 1919-1933

Economic Problems….Hyper-Inflation 1923

The Golden Years 1924-29

Political Instability 1924-29

Depression & Unemployment 1930

Economic Problems: Hyper-Inflation

Germany borrowed to finance WWI instead of taxing citizens.Following WWI most govt. income was used to pay off the debt & reparations.Govt. printed money to pay debt even though the economy was not expandingSevere inflation occurred

Economic ProblemsSpring 1922…300 marks = 1 US dollar

Early 1923…50,000 marks = 1 US dollar

Wages were often carried home in wheel barrels full of almost worthless paper money

Economic ProblemsPeople began to barter / trade goods/services instead of using money

Paper money dropped in value forcing the German Govt to print paper money (over 300 paper mills working 24 hrs a day)

The rising price of bread in post-war Germany.

•1918… 0.63 marks

•1922… 163.15 marks

•Jan 1923… 250 marks

•July 1923… 3,456 marks

•Sept 1923… 1,512,000 marks

•Nov 1923… 201, 000, 000,000 marks

Hyper- Inflation…bread

1914… 0.90marks

1921… 1.60 marks

1922… 7 marks

July 1923… 5,000marks

Sept 1923… 4,000,000 marks

Nov 1923… 320,000,000,000 marks

Hyper- Inflation…eggs

I went into a café for a coffee. I noticed that the price was 5000 marks, which is roughly what I had in my pocket. I drank my coffee and read the paper. When I asked for the bill, it was 8000 marks. The value of the mark had fallen in the space of one hour!

Memories of a German Writer

Hyper-Inflation

Two women were carrying a laundry basket full of banknotes. They put the basket on the ground while they tried to buy something from a shop. When they got back, the money was still there, but the basket had been taken.

Memories of a German Writer

Hyper-Inflation

The Golden Years 1924-29

Economic stability returned largely due to the policies of Gustav Stresemann.He stabilized the German economy following the year of crises in 1923, which included the invasion of the Ruhr by the French, hyperinflation, communist uprisings and the Beer Hall Putsch (started by Hitler in Munich)

Gustav StresemannChancellor 1923, Foreign Minister 1923-29

Stresemann’s accomplishments 1924-29

Ended hyperinflation by introducing a new currency backed by US gold.Restarted reparation payments in return for US loan assistance. This led to investment and growth in German companies (BAYER, BASF, Lufthansa)Germany invited to join The League of Nations in 1926Art, culture, and science thrived

Political Instability 1924-29

Following WWI, the main political parties in Germany were:

1. Communists2. Social Democrats3. National Socialists (NAZIS)

This resulted in minority governments ( a total of six during this period.)

Depression & Unemployment 1930

US consumers were no longer in need of German products US banks could no longer lend the German govt & businesses money to rebuild from WWI and called in their loansGerman businesses went bankrupt & people lost their jobsUnemployment jumped from 1.4 million in 1928 to 6 million by 1932

Unemployment line in Hanover 1930

Depression & UnemploymentHitler & the Nazi party said…….

“Believe me, our misery will increase! The government itself is the biggest swindler & crook. People are starving on millions of marks! We will no longer submit!. We want a dictatorship.”

“Our last hope” – Nazi election poster

Hitler becomes Chancellor of Germany 1933

Party 1928 election 1932 election

Communists (KPD) 54 89

Socialists (SPD) 152 133

Nationalists (DNVP) 79 40

Nazis (NSDAP) 13 230

Others 175 117

German elections (number of seats)