After World War 1, Germany had to pay a huge amount of
reparation ( 132,000,000,000 gold marks / 132 billion gold marks). But the Germany only paid 50 billion marks
which was less than what did afford to pay.
Germany was also allowed to pay in actual materials such as coal, iron and wood etc. Most of the coal marks were payed in coal iron and wood.
Under the Weimar Government, the economy of the country had gone from bad to worse as the workers went on
strike. The government had to do the worse
possible thing that they could do – to print more money. They had print more money in order to cover the cost. The
striking workers were paid and the people
expelled from their home were taken care of
with the money that were printed.
Furthermore, Germany printed more money to buy foreign currency to pay for the reparation. The
more money that was printed, the lesser the value the money is. This affected greatly to
the wealthier Germans and the middle class as their savings were wiped out
overnight and their savings became useless.
Also, due
to hyperinflation, the prices of food also went up quickly and Germany were
known to the other countries that she did not have enough money to pay for
their daily needs
E.g. in 1922 a loaf of bread cost 163
marks.
By September 1923, a loaf of bread
cost 1,500,000 marks and by November 1923 ,
a loaf of bread cost 200,000,000,000 marks.
( Refer to the picture below)
As
the time passes the same amount of money could barely buy anything in the
future. Hence, the poor would have to starve as they can barely afford
anything.
While the wealthier people or the middle class would actually had a
hard time adapting as they spent their earlier lives spending money on things
that they could afford but as the time passes, they live like the poor while
the poor just live even poorer. Life was harsh on them as the money they had became worthless overnight.
The same amount of money could even barely afford them
a loaf of bread or even a cup of coffee.
Furthermore, the prisoners are also
suffering as the pension that the received did not increase even though the
amount of money currency increased. Hence, the prisoners could not afford a
single thing. Not even a cup of coffee.
Even though they are ‘‘billionaire’’
, they are actually poor. Some ‘‘billionaire’’ could barely afford
a cup of coffee or a loaf of bread to satisfy their hunger. Almost everyone in
that time were ‘‘billionaire’’ ,but they could barely afford anything such as
their basic daily supply, food ,
toiletries etc.
Money became worthless by the minute as people were paid hourly as people rush to give the money to their family and love ones before the value of the money became worthless.
As
the Government printed money really quickly, the money actually became so
worthless that the children started playing with it.
Additionally, due to hyperinflation,
people in Germany were unemployed and they were starving. Therefore, this led to
violence within the people. The people had to steal and fight for food in order for them to survive.As the Germans were angry
and disappointed with the Weimar Government due to hyperinflation since they were greatly affected, they went on and supported Hitler. As
Hitler was able to shape a better Germany, leading to his rise of power.
In conclusion, Germany was greatly affected after World War 1, and they had to print more money in order to pay off their debt to the Allies. By doing this, the Germans were also affected as they were trying hard in order to survive. The Germans were having a harsh time as they could barely afford anything to eat as the government printed more money, the value of the money decreased drastically.
In my opinion, I think that Hitler used the situation as an advantages as he promised the people that he would solve the problem, Therefore , the Germans would support him and thus leading him to rise to power.
Videos on Hyperinflation:
In my opinion, I think that Hitler used the situation as an advantages as he promised the people that he would solve the problem, Therefore , the Germans would support him and thus leading him to rise to power.
Videos on Hyperinflation:
Website on the videos:
https://www.youtube.com/watch?v=WI1i5yhwOz8
https://www.youtube.com/watch?v=h-7YCcZUXmw
Website on Hyperinflation:
http://econc10.bu.edu/Ec341_money/Papers/Hubbard_paper.htm
v interesting videos! :)
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