Life in the Weimar Republic

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Life in the Weimar Republic

• Leading to Fascism Hitler

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Lets Review Germanys Treaty of Versailles
Punishments

• Loss of territory
• Huge reduction of military
• King must step downDemocracy must replace
  monarchy
• Acceptance of Guilt for WWI Guilt Clause
• ReparationsBillion dollar payments to England,
  France, Russia, USA

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Weimar Republic, what was it?

• Born out of defeat in WWI
• Weimar is the new Democratic system of government
  in Germany
• Named for the city in which the constitution was
  developed
• A Parliamentary system, not a US style
  Presidential system

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Understanding Inflation Hyperinflation

• Inflation Rise in the price of any good or
  service
• Hyperinflation when the inflation rates exceeds
  50 a month

• Germany in 1923 experienced 322 inflation
• If a cup of coffee cost you 1 in 2009, by 2010
  it will cost you 322.00!!!

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Inflation in Germany

• According to the provisions of the Treaty of
  Versailles, Germany was required to make
  reparation payments for war damages. In April,
  1921, the Allied Reparations Commission
  determined that Germany owed 132 billion marks
  (33 billion U.S. dollars), payable in annual
  installments of 2.5 billion marks. In 1921, the
  new German republic, known as the Weimar Republic
  made its first payment.

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Inflation in Germany

• By the end of the war, the German mark had lost
  half of its value. People experienced this
  phenomenon as a doubling of the prices they were
  paying for goods and services.

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This girl is actually burning the German Marks
because they were worthless!
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German Mark Year U.S. Dollar
1914 1
1919 1
1922 1
January, 1923 1
July, 1923 1
August, 1923 1
November, 1923 1
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German Mark Year U.S. Dollar
4.2 1914 1
1919 1
1922 1
January, 1923 1
July, 1923 1
August, 1923 1
November, 1923 1
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German Mark Year U.S. Dollar
4.2 1914 1
9 1919 1
1922 1
January, 1923 1
July, 1923 1
August, 1923 1
November, 1923 1
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German Mark Year U.S. Dollar
4.2 1914 1
9 1919 1
500 1922 1
January, 1923 1
July, 1923 1
August, 1923 1
November, 1923 1
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German Mark Year U.S. Dollar
4.2 1914 1
9 1919 1
500 1922 1
18,000 January, 1923 1
July, 1923 1
August, 1923 1
November, 1923 1
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German Mark Year U.S. Dollar
4.2 1914 1
9 1919 1
500 1922 1
18,000 January, 1923 1
350,000 July, 1923 1
August, 1923 1
November, 1923 1
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German Mark Year U.S. Dollar
4.2 1914 1
9 1919 1
500 1922 1
18,000 January, 1923 1
350,000 July, 1923 1
5,000,000 August, 1923 1
November, 1923 1
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German Mark Year U.S. Dollar
4.2 1914 1
9 1919 1
500 1922 1
18,000 January, 1923 1
350,000 July, 1923 1
5,000,000 August, 1923 1
4.2 trillion November, 1923 1
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Unemployent in Germany 1928-1933
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Germany

• 10 Million Marks would buy
• 1/2 lb. of meat or 4 eggs or 2 lbs. of potatoes
• Bread was 2 million marks per loaf

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• Here we have a 1000 Mark banknote over-stamped in
  red with 1 billion !!!

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The Dawes Plan - 1924

• Germanys reparations paid over a longer period
• America lent money to German industry and also to
  the Government to pay reparations
• German currency reorganised