In 1923, Germany had failed to make a reparations payment resulting in France occupying the Ruhr. This had a disastrous effect on the German economy, resulting in the German government printing more money as the currency collapsed and by November 1923, one US dollar was worth 4.2 trillion marks. Leading economists still believe that the reparations accounted for most of Germany’s deficit in 1921 and 1922 and that they caused hyperinflation. Furthermore, Germany was stripped of 25,000 square miles of
FOLLOW THE LEADER ADOLF HITLER Germany in 1930 In 1930 the Germanic social and economic situation was heading towards chaos. After the Wall Street Crash of 1929, the United States were forced to call back the money they had loaned Germany in 1924 and 1929, leaving the Weimar Republic with no resources to invest in the economy. The Germanic growth over the last years had been an illusion, as a great deal of the capital invested had been coming from overseas loans. As the money borrowed was paid back, Germany was once again facing bankruptcy. Unemployment, which was not a major issue in 1929, dramatically soared by September 1930 1.
Describe the effects of hyperinflation on Germany in 1923. (9) The Weimar government was short of money after the First World War and so began to print more and more banknotes. The sudden flood of paper money into the economy, on top of the general strike - which meant that no goods were manufactured, so there was more money, chasing fewer goods - combined with a weak economy ruined by the war, all resulted in hyperinflation. Prices ran out of control, for example, a loaf of bread, which cost 250 marks in January 1923 had risen to 200,000 million marks in November 1923. German's currency became worthless.
One thing the Germans were not happy in the treaty of Versailles is the War Guilt Clause, take blame for the war. Because of this they had to the reparation to the big three. The German government didn’t have the money to pay for the reparation as the country just lost a war and the factory are destroy and the environment is in a poor state. So then the USA banks lend Germany government loans. Its was all going well as Germany was getting in a better state and they are paying their reparation until 1929.
American businesses lost vast amounts of money and to repay the debt they asked German banks to repay the money they had borrowed. Peoples vote turned to leaders who blamed reasons for the Depression. The Nazi's The Weimar Republic was not to blame for the huge economics problems Germany were in at the time. Though to stop hyperinflation reoccurring the Chancellors raised taxes, cut wages and reduced unemployment
The housing market also plummeted leading to negative equity, which the majority of the working class could not afford resulting in the repossession of their houses combined with the drastic increase in unemployment Britain was in a mess. However Major did have some success, he abolished poll tax, which was very popular among the public, he increased spending on the NHS and introduced transport subsides to keep travel fares low.
If the big government cuts of taxes for the “job creators,” it will have no positive effect on the economic status, but will decline and collapse eventually. As our nation sinks into inflation, Stockman says “today’s natural security is really doubled Eisenhower’s when he left office in 1961.” The Soviet Union era (the nuclear bomb and Sputnik) caused the economy to spend $400 Billion in today’s dollars; Stockman compares that situation to Ryan’s future plan. Similarly Ryan’s
After the massive stock market crash, the public became wary of spending money and began to reduce expenditure. A decrease in goods purchased caused a decrease in production making thousands lose their jobs, raising the unemployment rate to 25%. In an effort to reduce the damage that had been done, the American Government decided to place a heavy import tax which was designed to protect American companies. This tax instead reduced trade between America and Europe drastically, this tax was called the Smoot-Hawley
6) Hoovervilles were named after Herbert Hoover because he was the president at the time of the great depression. The American people felt like he was to blame for the terrible economy because he raised taxes when he promised that he wouldn't as well as creating the Smoot Hawley tariff which eventually cut America off from foreign trade, tightening the grasp that the depression already had on the U.S. The negative view that the American people had of Hoover was not fair because he put forth more effort than any other president before him to pull America out of a
The high interest rate of 1979 and 1980 had a negative impact on Massey’s sales performance. The cost of short-term debt and expense rose dramatically. High interest rate depressed the market and decreased the demand of farm and industrial machinery which shrank the company sales. 2. Why would the Canadian government have any interest in helping Massey-Ferguson refinance its debt?