Make Germany Pay part 2 - the Ruhr, hyperinflation and recovery

Summary

The transcript discusses the aftermath of World War I and the economic and political crises Germany faced in the early 1920s. After falling behind on reparations, French and Belgian troops occupied the Ruhr in 1923, leading to German passive resistance and strikes. This deepened the country's economic struggles, including hyperinflation. Gustav Stresemann became Chancellor, calling off resistance and resuming reparations. Despite nationalist backlash, inflation was controlled, and the Dawes Plan helped stabilize the economy. France withdrew from the Ruhr, and Germany reintegrated into international diplomacy through the Locarno Pact and League of Nations.

Takeaways

• 🇫🇷 France and Belgium invaded the Ruhr in January 1923 to force Germany to pay reparations.
• 🇩🇪 German workers in the Ruhr refused to cooperate with the French occupation, leading to passive resistance.
• 📉 The German government's support of the strikers exacerbated the country's financial crisis, leading to hyperinflation.
• 💸 The value of the German mark plummeted, with people needing suitcases full of money to buy basic goods.
• 🛑 Gustav Stresemann, appointed Chancellor, ended the Ruhr resistance to stabilize the economy.
• 💬 Stresemann resumed reparation payments, leading to the eventual withdrawal of French and Belgian troops from the Ruhr.
• 💥 Adolf Hitler and General Ludendorff attempted a failed coup in Munich in November 1923, resulting in their arrests.
• 🪙 Hyperinflation was brought under control by replacing the worthless mark with a new currency.
• 🇺🇸 The Dawes Plan of 1924, led by an American, reduced Germany's reparations payments, helping stabilize the economy.
• 🤝 The Locarno Pact of 1925 improved relations between France, Belgium, and Germany, with Germany joining the League of Nations in 1926.

Q & A

Why did Raymond Poincaré, the new French Prime Minister, decide to take action against Germany in 1923?

Raymond Poincaré decided to take action because Germany fell behind with their payments, and he wanted to ensure that Germany paid in full and on time.

What was the consequence of France's decision to enforce payment from Germany in 1923?

As a consequence, French and Belgian troops entered the Ruhr on January 11th, 1923, to force the Germans to pay up.

How did the German people and government respond to the French and Belgian occupation of the Ruhr?

The German people and politicians united in a common cause of hatred towards the French. Workers in the Ruhr refused to cooperate with the 'enemy', and the German government supported the strikers, leading to a halt in Germany's industrial heart.

What was the French reaction to the German resistance in the Ruhr?

The French retaliated by bringing in their own workers to get the production moving again and began to harden their attitude towards the Germans, trying to cut the Ruhr off from the rest of Germany.

What was the impact of the occupation and resistance on the German economy in 1923?

The occupation and resistance led to the Great German Inflation reaching its peak, with the value of the mark dropping and banks struggling to meet the increasing demand for paper money.

How did the German government attempt to deal with the economic crisis caused by the inflation?

The government attempted to deal with the crisis by printing more money to pay wages and strikers, which further devalued the currency.

Who was appointed as Chancellor to address the crisis in Germany?

Gustav Stresemann was appointed as Chancellor to address the crisis.

What policy did Stresemann adopt to help the economy recover?

Stresemann adopted a policy of cooperation, calling off resistance in the Ruhr and resuming the payment of reparations to help the economy recover.

What was the outcome of the Dawes Plan in relation to German reparations?

The Dawes Plan, set up by a committee under Charles Dawes, scaled down the reparations so that Germany could afford to pay them.

How did the Locarno Pact of 1925 affect the relations between France, Belgium, and Germany?

The Locarno Pact of 1925 saw France, Belgium, and Germany agreeing to respect their frontiers, and Britain pledged to support any country that was invaded, indicating a reduction in old enmities.

What was the significance of Germany becoming a full member of the League of Nations in 1926?

Germany's full membership in the League of Nations in 1926 signified a further normalization of relations and a recognition of Germany's status on the international stage.