Question

HELPPPPP

1.) what does this picture tell you about the value of the mark

2.)how did this happen?

3.) explain how you think people in German felt about this.

Answer 1

The collapse of the German Mark in 1923 due to hyperinflation left the currency virtually worthless, leading to immense hardship among the citizens. It coincided with Hitler's Beer Hall Putsch and political unrest, which set the stage for his future rise to power.

Step-by-step explanation:

The final collapse of the German Mark in 1923 tells us about the devastating impact of hyperinflation on a country's currency value. This economic crisis occurred when the Weimar Republic printed more money to pay bills and reparations, leading to inflation rates of 35,974.9% in November 1923, which further escalated to an annual rate of 4.69 × 1028%. Such an extreme devaluation of currency meant that money became virtually worthless, leaving people to use it for menial tasks such as scratch paper.

This catastrophic financial situation happened in the aftermath of World War I, when Germany faced huge reparations debts and economic instability. To address escalating costs and reparations, the German government resorted to printing more money, which led to the value of the Mark plummeting. The onset of hyperinflation saw prices rise so dramatically that people would be paid with wheelbarrows full of cash, which would lose value drastically within hours.

The hyperinflation of the Mark likely caused immense distress, anger, and resentment among German citizens. Savings and incomes evaporated, plunging many into poverty and desperation. This economic desperation contributed to the political instability that allowed extremist groups like Adolf Hitler's Nazi Party to gain a foothold. The Beer Hall Putsch, occurring at the same time as the Mark collapse, was a reflection of the political turmoil and discontent that beset Germany. After Hitler's putsch failed and he was imprisoned, he wrote 'Mein Kampf' and formulated an alternative vision for Germany, which eventually led to his rise to power.

Answer 2

1.) After World War I the mark collapsed as Germany suffered from hyperinflation. To stem currency instability and to stabilize the economy, the gold mark was replaced by the Rentenmark in 1924, at which time a U.S. dollar was worth 4.2 billion marks.

2.) After the November Revolution of 1918, the Peace Treaty of Versailles in 1919 committed Germany to pay reparations to the victorious powers (especially to France). German reparations had to be paid in goldmark, foreign exchange and tangible goods and were therefore not affected by inflation. In January 1920, the mark had only a tenth of its August 1914 exchange rate against the US dollar.

Because the Reich government was no longer able to pay the reparations in an appropriate amount or to provide compensation in the form of economic goods, the Ruhr was occupied by French and Belgian troops. The German government under Chancellor Wilhelm Cuno called for a" Ruhrkampf", a passive resistance against the military occupation. In order to keep the strikers happy, corresponding financial aid was paid out to them – in a mark that was devalued more and more rapidly by the increase in money operated by the government. This marked the beginning of the months of hyperinflation that followed generations of Germans as an example of the horrors of inflation. The depreciation against the US dollar multiplied more and more rapidly until, in November 1923, the price for a US dollar equaled 4.2 trillion marks.

3.) Because of the Economic Disaster Hitler came to power and WW2 happened. 92 Years after the end of the First World War, Germany pays the last instalment for its war debt.