hyperinflation lesson starter: this is a picture of a man collecting his wages in germany in 1923!...
TRANSCRIPT
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HyperinflationLesson starter:
This is a picture of a man collecting his wages in Germany in 1923! But how long did he have to
work to get that much money?
![Page 2: Hyperinflation Lesson starter: This is a picture of a man collecting his wages in Germany in 1923! But how long did he have to work to get that much money?](https://reader036.vdocuments.us/reader036/viewer/2022062423/56649e915503460f94b96107/html5/thumbnails/2.jpg)
Today we will…
• Understand why hyperinflation occurred in Germany
• Identify the problems it created
• Understand the solution to hyperinflation
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• As we know, Germany was forced to pay the allies £6.6. Billion pounds in goods or gold, this was called Reparations.
• In 1923 when Germany was late sending its payments the French and Belgians invaded a border area called The Ruhr.
• The French tried to force German workers to work for them, they refused and went on strike.
• The Ruhr Crisis left shortages in Germany this made prices rise (inflation)
• The Weimar Government printed off more money to try and help this
• This was disastrous for Germany
Ebert
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1 US DOLLAR ($) Deutschemarks (DM)
1922 400
Feb 1923 7000
August 1923 1,000,000
November 1923 130,000,000,000
This table shows how much a US dollar could be purchased for in Germany
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Observation skills
• You will see some pictures which show the effects of hyperinflation in Germany
• Write down what you see in each picture
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• A German story from 1923:• “ a man rushed out with a wheelbarrow to spend
his wages and left it outside a shop loaded with money. When he came back out the shop the wheelbarrow was gone and the wages had been dumped on the ground.
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Effects of Hyperinflation• Savings and pensions became worthless• One German businessman saved for 20 years in
1913 he could have bought a mansion with his savings but by 1923 he had enough for a box of matches!. yet by 1923 only had enough
• Prices went up a few times a day so workers had to be paid twice a day and rushed out to spend their wages immediately
• People physically couldn’t carry enough money about to buy goods
• Shops began to refuse to take German money, many Germans had to barter (swap) goods
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Who was to blame?• Imagine you were a
war veteran or war widow in 1923.
• Your set wage is now worthless and you are left with nothing
• How would you feel? Who would you hold responsible?
Vote for me and I will return Germany to a booming economy. We will be a financial superpower again.
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How did Hyperinflation end?1. America gave
Germany loans through the Dawes Plan to rebuild their economy
2. The French left the Ruhr in 1924
3. A new currency, the Rentenmark, was introduced
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Today we will…
• Understand why hyperinflation occurred in Germany
• Identify the problems it created
• Understand the solution to hyperinflation