How people were affected by hyperinflation in Germany
Which groups of people were better off and worse off during hyperinflation?
Hyperinflation is when a country experiences a large increase in prices and there becomes an imbalance in the supply and demand for money, causing the concept of inflation to be meaningless.
The hyperinflation of the Weimar Republic was a 3 year period of hyperinflation in Germany, between June 1921 and January 1924. It was caused by the extremely rapid growth in the supply of paper money. It was almost like a form of taxation, as Germany was struggling for money at this time, because they need to repay expenses from the war.
An event like this caused various issues for different groups of the German public…
Pensioners – During hyperinflation in Germany, prices and wages soared up drastically, which meant people who had earned a fixed pension had saved their money for nothing. That money had become worthless, and probably wouldn’t have bought a loaf of bread, which meant pensioners who had worked all their life had to go back to work to survive.
Workers – Wages came in sacks and workers had to buy goods as soon as they got these wages, otherwise the prices would rise again and their money would lose more of its value. Shopping was a struggle, as often people had to take wheelbarrows full of money to be able to afford their groceries.
People with loans/mortgages – Hyperinflation was a great help to these people because a loan or a mortgage is a fixed fee, so peoples wages rose rapidly and their loans and mortgages stayed the same, so they were easy to pay off.
The wealthy – People who were very rich weren’t really affected by hyperinflation, because it was easy for them to get the food they needed, especially if they owned a lot if land as they could produce their own food.
The government – The government (democratic politicians) lost many supporters in the middle/working class, who reverted to supporting the Nazis, as they had lost all confidence in the previous
Hyperinflation is when a country experiences a large increase in prices and there becomes an imbalance in the supply and demand for money, causing the concept of inflation to be meaningless.
The hyperinflation of the Weimar Republic was a 3 year period of hyperinflation in Germany, between June 1921 and January 1924. It was caused by the extremely rapid growth in the supply of paper money. It was almost like a form of taxation, as Germany was struggling for money at this time, because they need to repay expenses from the war.
An event like this caused various issues for different groups of the German public…
Pensioners – During hyperinflation in Germany, prices and wages soared up drastically, which meant people who had earned a fixed pension had saved their money for nothing. That money had become worthless, and probably wouldn’t have bought a loaf of bread, which meant pensioners who had worked all their life had to go back to work to survive.
Workers – Wages came in sacks and workers had to buy goods as soon as they got these wages, otherwise the prices would rise again and their money would lose more of its value. Shopping was a struggle, as often people had to take wheelbarrows full of money to be able to afford their groceries.
People with loans/mortgages – Hyperinflation was a great help to these people because a loan or a mortgage is a fixed fee, so peoples wages rose rapidly and their loans and mortgages stayed the same, so they were easy to pay off.
The wealthy – People who were very rich weren’t really affected by hyperinflation, because it was easy for them to get the food they needed, especially if they owned a lot if land as they could produce their own food.
The government – The government (democratic politicians) lost many supporters in the middle/working class, who reverted to supporting the Nazis, as they had lost all confidence in the previous