Question

How did hyperinflation contribute to the rise of Hitler in Germany?

Answer 1

Answer:

It certainly upset many Germans. It led to the invasion of the Ruhr by the French and Belgium's in 1923 which led to passive resistance and ultimately hyperinflation and the losses suffered by savers and pensioners for example who lost virtually everything and made the Weimar Government more unpopular.

Germany was already suffering from high levels of inflation due to the effects of the war and the increasing government debt.

‘Passive resistance’ meant that whilst the workers were on strike fewer industrial goods were being produced, which weakened the economy still further.

In order to pay the striking workers the government simply printed more money. This flood of money led to hyperinflation as the more money was printed, the more prices rose.

During the crisis, workers were often paid twice per day because prices rose so fast their wages were virtually worthless by lunchtime.

People on fixed incomes, like students, pensioners or the sick, found their incomes did not keep up with prices.

People with savings and those who had lent money, for example to the government, were the most badly hit as their money became worthless.

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