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Describe the Effects of Hyperinflation on Germany in 1923

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The Weimar Republic was Germany's new democratic government. Many German people were unhappy with the new system, and preferred to be united under one strong leader. During World War I, the German government had a lot of bills to pay, and little money to do it with. So they printed more banknotes, which at first seems like an ideal solution. But this means the prices will rise, which leads to a demand for more wages, so production costs of items increase, so prices rise, more wages, and so on. This is called inflation, and a particularly bad case of it hit Germany called hyperinflation. After the war, the Weimar Republic ran up a lot more costs, so more banknotes were printed, which lead to hyperinflation, when the money was worth less than the paper it was printed on.
Hyperinflation affected Germany and the citizens in a massive way. Prices of food and basic supplies rose by the hour. People sitting in a restaurant found that their second drink could cost twice as much as their first. Workers were paid up to three times a day. The wages would be collected in a wheelbarrow and taken down to the shops to be spent as quickly as possible, before prices rose any further.
German money became worthless paper money had no value. The people who had been saving for years were affected quite badly, their savings became absolutely worthless. People on fixed incomes, such as pensions found that they became worth nothing.
However the losses many Germans gained from the hyperinflation. People with property were making money, while those with debts or mortgages saw their value disappear and their debt payments effectively end. Businesses were able to borrow money, spend it on new machinery, and then pay back virtually nothing to the banks. The speed with which Germans had to spend their money meant that demand in the shops was actually higher than before the period of hyperinflation. In response to this, companies employed more workers, and unemployment effectively ended by 1923. The German government also benefited in at least one way. During World War I the government had borrowed lots of money to pay for the war and as the hyperinflation rose, the government saw its debts being wiped out.
In conclusion the hyperinflation affected all Germans, some in a good way and some terribly. The middle class were very affected badly as all their savings became worthless, where as the businessmen who had borrowed money from backs were now able to wipe out their debts, meaning the hyperinflation turned out in their favour.

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