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Hyperinflation in Germany in the 1920s
Political challenges in the Weimar Republic
Political challenges in the Weimar Republic
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November 9th 1918 marked the end of the German Empire and the beginning of a new democratic system. During the early days of the Weimar Government, there were numerous problems that could have potentially affected the survival of the republic had they not been dealt with in the way they were.
This essay will explore the ways in which the Weimar Government did not deal with early threats to its stability successfully with respect to the new democracy, the Treaty of Versailles and its consequences, and both right and left wing revolts.
Democracy was a new idea to Germany who had always known and loved their Empire and Kaiser. Other than the unpopularity of democracy as a concept itself, there were two main flaws with the new government- Article
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As a result of this, the government began to print more to make up for what they didn’t have, but this caused the value to decrease as there was the same amount of demand but more money in circulation- i.e- hyperinflation. As Germany were failing to keep up with their payments, France and Belgium occupied the Ruhr- Germany’s most important industrial region- and took over the iron and steel factories, as well as coal mines and railways. The government ordered workers in the Ruhr to “passively resist” and go on strike against the French and Belgian. This caused disastrous consequences for Germany. As the Ruhr was such a rich area, the economy began to suffer from the lack of production. In response to this, the government printed more money, worsening the problem of hyperinflation.
Although some may argue that the Weimar Government were to blame for hyperinflation as they should not have ever printed more money; the situation could have been completely avoided from the start, they dealt with the problem relatively well. Passive resistance was ended, meaning that people were forced to go back to work if they wanted to get paid. It was an unpopular idea, as it opposed the patriotism that many people stood by- they felt that they were giving in to France, but it allowed the country to spend less which was ultimately the best option for Germany at the
The Weimer Republic, is the democratic government established in Germany in 1918 that ruled for fifteen years after the collapse of the German empire after the First World War.The republic consisted of moderates from the Social Democratic Party as well as their liberal allies, which included the German Democratic Party, and the Catholic Center Party. The Weimer Republic sought political democracy, which they believed was attainable by the elimination of war, revolutionary terror, and capitalism. Despite their clear goal, the Weimer Republic faced backlash by the radicals of society, which included communists, National Socialists, and the Nazi Party led by Adolf Hitler. THESIS: The Weimer Republic’s instability in the period of 1918-1933 is
Exploring the Reasons Behind Public's Discontent with the Weimar Government There were a number of reasons why the German people were unhappy with the Weimar government. One of the main reasons for this was the signing of the Treaty of Versailles. The result of this was that Germany has to take the war guilt, Germany had to pay reparations of 6,600 million marks to the allies in particular France, Germany lost its colonies, it lost its air force & tanks, and its soldiers were restricted to 100,000. The Ruhr was demilitarised. Also they lost their colonies and its land was cut up such as the Polish Corridor and Alsace Lorraine.
The Weimar constitution was forced into creation by the German desire to sign an armistace with the Allied forces after significant defeats on the Western front. Not only were the Allies demanding a democratic governing style in Germany, but there was also a strong desire to move away from the autocratic state that had existed under the Kaiser. Although the new constitution outwardly appeared to be democratic, there were several internal factors that severely undermined the democratic integrity of the new constitution, and made it almost indistinguishable from its autocratic predecessor.
The period after World War One was very politically unstable. Many different kinds of governments, such as fascism and communism, were coming up all over Europe. One country that especially faced this political fluctuation was Germany. After the war, Germany was forced into a democracy known as the Weimar Republic, but this government soon collapsed and Hitler’s fascism took over. There were various factors that contributed to the fall of the Weimar Republic, but three major ones were the lack of popular support for the government, the lack of efficiency and internal organization, and the competition of other, more conservative parties such as the Nazis.
In order for Germany to pay the debt that they owed they kept changing the value of their currency. This action caused inflation. The Bourgeoisie was suffering greatly from inflation as well. Infla...
After the First World War Germany recognised her first ever democratic government, the Weimar republic lasted from 1918 – 1933 an astonishingly long time given its turbulent start. The November revolution saw the election of soldier and worker councils similar to that of the Russian revolution in 1917, it spread across Germany like wildfire and in turn split the country before a democracy could even be instated nevertheless on November 9th 1918 the German republic was established. From then on, the Weimar Republic was set on an unstable and insecure path and this is why it is one of Germanys most important historical periods; it was Germanys earliest form of non-imperial government and rule and its collapse in 1933 paved the way for the rise of Hitler and the Nazi party. For these reasons there have been endless works published on the Weimar republic and the outpouring of literature post world war two focuses on the collapse of the Weimar republic and how the Nazi party came to power. However, to understand why the debate surrounding the Golden Era in the Weimar Republic is an interesting one and lacking in historical works, it is key to examine the historiography of the Weimar republic as a whole.
The general public of Germany had never had any say in political matters; they allowed the Kaiser to make all the decisions regarding themselves and their once-prosperous country. The groups controlling Germany began to change during October and November 1918. More power began to fall into the hands of the people as they realised the blame for their involvement in the war was the Kaiser’s. People such as the armed soldiers, sailors and workers started protesting and going on strike. This was a far cry from before the war, when Germany was wealthy, proud and ambitious. So for a brief period, it seemed that a revolution would take place, with the people of Germany wanting a social and political revolution.
“On 2 August 1934, President Hindenburg died. Within an hour of his death Hitler announced that the offices of chancellor and president were to be combined and that he was the new head of state. Hitler’s adolescent dream of becoming Fuhrer of the German people had been realized” President Hindenburg’s death marked the official end of the Weimar Republic, a democratic ‘experiment’ that had lasted since 1918. The causes of the dissolution of the Republic are wide ranging and numerous, as was explained in the articles of both Richard Bessel, and John McKenzie. The two author’s agree on the sequence of events which led to the dissolution of the Republic, however, they disagree on what exactly caused the transition from Weimar to the Third Reich. The author’s disagreement stem from a differing view of the fundamental cause, political structure versus political leadership.
Hyperinflation is an economic condition characterized by “a rapid increase in the overall price level that continues over a significant period” and in this period the concept of inflation is essentially rendered meaningless (Kroon 90). The post-World War I German economy experienced a crippling period of hyperinflation which lasted nearly two years and had an enormous impact on the economy. The hyperinflation began inconspicuously as the inflation rate crept just a percent or two per year during the war years. In the post-war period inflation began to rise and in early- to mid-1922, inflation raged. During this period, businesses reached full operational capacity and unemployment nearly disappeared. While nominal wages increased, real wages dropped precipitously. Workers were paid two or three times a day, and they rushed home to pass the money to family members who could go and exchange the rapidly depreciating currency for real goods (clothing, food, etc.) before it became completely worthless. Prices rose so rapidly pe...
The German Weimar Republic was an attempt to make Germany a more democratic state. While this was a very good idea in theory, the Weimar Republic was ineffective due to the instability that came with it. Several factors contributed to the instability of Germany’s Weimar Republic, such as the new political ideals brought forward and the government’s hunger for war. To begin, one of the factors that contributed to the instability of the Weimar republic was the presence of new political ideals. Marie Juchacz unintentionally highlighted that reason in her speech to the National Assembly.
...After we consider all these points mentioned we begin to see how everything worked and connected to form one huge disaster for Germany. We start to see how all these things played a part, the reparations led to unemployment that led to no money that led to overprinting of money. How the huge consequence of the reparations led to the unsuccessful paying of it leading to the French invasion of the Ruhr which led to strikes and therefore no products to trade with. How the unstable Weimar government led to extremist parties that damaged the economy further and brought inflation to its highest. The effects were probably the worst, the starvation coupled with the disease epidemic that killed people off and the worthless tonnes of paper notes roaming around the nation. It all in all was a very bad time in Germany one that they always found it hard to recover from.
Germany was in need of a democratic government in order to meet the harsh provisions of the Treaty of Versailles. Established by members from the Social Democrat Party in 1919, the Weimar Republic became the central power in Germany for the following years. The republic was found in the city of Weimar and was a replacement, so to say, for the imperial government that had previously stood as the central authority. Even though the Weimar Republic managed to lead Germany for 15 years, it experienced devastating drawbacks such as hyperinflation, lack of support from the public, and the constant efforts from different groups to overthrow the government; because of these factors, different political groups sought a resolution, such as overthrowing the government and pushing for a strong leader. Severe economic problems arose in Germany essentially due to the punitive provisions of the Treaty of Versailles.
The causes of the failure of the Weimar government are multi-faceted. However, I assert that the Weimar government's inability to keep the people's confidence in their capabilities, which eventually rendered them obsolete, was fundamentally due to the threats from within rather than the external hazards. Through exploring the flaws in the constitution and the threats to the WG's authority from the outside, it will be proven that what brought the WR down were its intrinsic vulnerabilities , and that the external threats were only catalysts of their downfall; without the presence of the internal weaknesses in the first place, the external perils would not have been able to threaten the rule of the government.
German people were unused to a democracy and blamed the government “November criminals”, for signing the Treaty of Versailles. From the very beginning, the new Weimar government faced opposition from both sides of the political spectrum. The Left wing Spartacist group, lead by Liebknecht and Luxemburg, looked up to the new Soviet councils in Russia, wanted to place Germany into a similar system.
Savings accounts, the result of years of hard work, were instantly wiped out. Inflation soon followed. hard for families to purchase expensive necessities with devalued money. I will be able to make it. Overnight, the middle class standard of living so many Germans families enjoyed was ruined by events outside of Germany, beyond their control.