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How stable was the Weimar Republic, in terms of its Economy, by 1924

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Introduction

How stable was the Weimar Republic, in terms of its Economy, by 1924? In 1918 the German economy was on the verge of collapse. Germany had committed so much money to its armed forces during the First World War that it barely had enough to feed its people. This was without the complications of the Treaty of Versailles in 1919 that crippled it further. The treaty of Versailles demanded ridiculous sums of money from Germany in order to pay for damage done to Europe during the campaign. They asked the Germans for �6600 million to cover this cost. This was an enormous figure at the time and one that Germany would not have been able to pay. ...read more.

Middle

The great industrialists would also be able to pay off their debts overnight. This however started a chain reaction with money printing spiralling out of control. To compare prices: a loaf of bread in 1918 would cost you 0.63 Marks, but by November 1923 it would set you back nearly 201,000,000,000 Marks. This is a price increase of roughly thirty-two thousand billion percent (32,000,000,000,000 %). Also by 1923 people were bringing home their wages, which were paid daily, in wheelbarrows and suitcases. It was also common for people to light fires and cigarettes with banknotes because it was cheaper than striking a match. ...read more.

Conclusion

Winners of the hyperinflation included big landowners and businessmen. This is because the price of property rose with the inflation so they never lost out like the poorer citizens. The allies did not fall for the trick played on them by the Germans. They did not accept the worthless marks. What the hyperinflation did do was rally international sympathy for Germany. So much so that the USA agreed to issue loans, to Germany, to help stabilise the economy. By 1924 the German economy was very unstable and could collapse at any minute. This was mainly due to the loans from the USA that could be called in at any minute. If they had it would have thrown the republic and Germany into total financial ruin. ?? ?? ?? ?? Ben Dunkley History Weimar Republic ...read more.

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