Crisis Year: 1923
1923 was the worst year faced by the Weimar Republic.
Germany experienced:
- The Ruhr Crisis
- Hyperinflation
- Political extremism
The Ruhr Crisis
Why Did France Occupy the Ruhr?
Germany struggled to pay reparations after the war.
In 1923:
- French and Belgian troops occupied the Ruhr
- The Ruhr was Germany’s most important industrial region
France wanted to take goods and resources instead of money.
Passive Resistance
The German government told workers in the Ruhr:
- Do not cooperate with the French
- Go on strike
This became known as passive resistance.
However, striking workers still needed paying.
The government responded by printing more money.
Hyperinflation
What Was Hyperinflation?
Hyperinflation happens when prices rise uncontrollably because money loses value.
The German government printed huge amounts of money during the Ruhr Crisis.
As a result:
- Prices exploded
- Savings became worthless
- Ordinary people suffered badly
The Effects of Hyperinflation
People needed wheelbarrows full of money to buy basic goods.
For example:
- The price of bread rose from a few marks to billions of marks
Many people:
- Lost their savings
- Became poorer overnight
- Lost trust in the government
The middle classes were especially angry.