Economic Problems 1918-1923

Question 1

Gold reserves all spent in the war

Answer 1

Harder to purchase goods from abroad (for the government)

Question 2

Reparations had to be paid

Answer 2

• Tax payers forces to pay more tax to the gov.

- Less social spending

Question 3

Spanish Flu (1918)

Answer 3

• 400,000 people died
• The gov. had to pay for medicine
• Less people paying taxes
• Less people working/slower economic growth

Question 4

WW1 casualties

Answer 4

• 4.2million wounded
• 1.7-2million died
• Large chunk of the workforce died/unable to work
• Widows pension had to paid

Question 5

Coalfields lost under the treaty (Saar/Silesia)

Answer 5

• 15% of Germany’s coal reserves
• Trade decreased
• Tax revenue decreased
• Fewer resources for domestic economy

Question 6

Army reduced from 11million to 100,000

Answer 6

• Increased unemployment so more benefits (and most joined the Friekorps)
• War industries ended
• Increased homelessness/disorder