AQA A-Level History: Weimar Republic Economic and Social Issues

Introduction

• Focus on the establishment and early years of the Weimar Republic.
• Examination of economic and social issues.
• Specifically: German economy and society, reparations, inflation, hyperinflation, invasion of the Ruhr, and social welfare.

Treaty of Versailles

• Main impact: Challenge of reparations due to War Guilt Clause 231.
• Reparations set at 132 billion gold marks in 1921 by the Reparations Commission.
• Strained the already weakened German economy.

Economic Devastation

• Destruction of industrial infrastructure post-WWI.
• Loss of industrial regions like the Saar Basin to France.
• Heavy reliance on industry made reparations payments difficult.
• War debts compounded economic strain.

Franco-Belgian Occupation of the Ruhr

• Occurred in January 1923 due to Germany's failure to make reparations payments.
• Occupied the Ruhr, Germany's industrial heartland.
• Aimed to seize coal, steel, and industrial resources to continue reparations payments.
• German passive resistance policy resulted in halted industrial production, worsening the economy.

Inflation and Hyperinflation

• Inflation began in 1920, worsened by reparations imposed in 1921.
• By 1923, inflation turned into hyperinflation.
• Exchange rate: 4.2 trillion German marks per US dollar.
• Necessities required wheelbarrows of cash to purchase.

Impact on Society

• Middle class savings wiped out; pensions worthless.
• Social inequality intensified.
• Winners: Debtors (debts became trivial to pay off).
• Losers: Those with savings, middle and working classes.

Social Welfare and Impact

• Attempted social safety nets included unemployment benefits and healthcare.
• Hyperinflation rendered these supports ineffective.
• Disillusionment and resentment towards government and Versailles Treaty.
• Extremism from both far left and far right increased.

Urban vs Rural Impact

• Urban areas: Workers hit hard by inflation.
• Rural areas: Farmers somewhat insulated; could trade goods for food.

Conclusion

• Hyperinflation crisis created more losers than winners.
• Rural areas and debtors slightly benefited, whereas most others suffered significant economic losses.