Describe the events leading to economic crisis in germany
Answers
Fearing fall in prices people sold all their shares. In one day 30 millon shares were sold.
Germany started printing their currency the mark carelessly and first 1 dollar was equal to 12000 marks then slowly it grew.
Sympathy grew for people by seeing photos of people carrying cartloads of money to buy a single loaf of bread.
Unemployment rates were very high.
Small businessmen, self wmployed etc started fearing unemployment.
Elders and people saw their saving diminsh before them.
Proletarianisation was filled in people.
People wore placards saying willing to do any work.
The youth scavenged for work, soon youngsters were seen playing cards at ckrnwrs and doing criminal activities
Events that led to economic crisis in Germany:
• Germany had battled the war to a great extent on loans and needed to pay “war reparations” in gold. This drained gold reserves of Germany.
• In 1923, due to gold scarcity, “Germany” refused to pay, and the “French” captured Ruhr one of the most leading industrial areas of Germany flourished with coal.
• In order to solve the problem, German government printed paper cash. With a lot of printed cash available for use, the estimation of the German imprint fell. In April, the US dollar was equivalent to 24,000 imprints, in July 353,000 imprints, in August 4,621,000 imprints, and at 98,860,000 stamps by December, it was kept running along with trillions.
• As the estimation of the imprint crumbled, the costs of goods increased.
• This emergency came to be known as hyperinflation, a circumstance when costs rise incredibly high.
• In the long run, the Americans intertwined and safeguarded Germany out of the emergency by presenting the Dawes Plan which revised the terms of reparation to facilitate the money related weight on Germans.