Download The Weimar Republic, Hyperinflation, and the Debt Crisis

Lesson
18
WORLD HISTORY AND GEOGRAPHY
The Weimar Republic, Hyperinflation,
and the Debt Crisis
Essential Question:
„ Is it possible to make a causal connection between the economic conditions and the social
and political changes in the Weimar Republic?
Introduction:
The Weimar Republic is the name given by historians to the parliamentary republic established in
Germany in 1918. It lasted through the early 1930s. In this lesson, students will examine the
collapse of the Weimar Republic. The dramatic collapse of the Weimar Republic is an example of the
ways in which the social, political, international, and economic conditions can combine to cause
serious problems. In this lesson, students will evaluate the economic conditions of this time,
hypothesize different ways that this economic crisis could have been resolved, and develop skills to
help them better evaluate the contemporary economic situation in the United States.
This lesson is appropriate for secondary students (grades 9-12) who are studying the Weimar
Republic and have a basic understanding of economic concepts like fiscal policy and inflation.
Following this lesson, students will better understand the social and economic problems caused by
the fiscal policies of the Weimar Republic.
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World History and
Geography
The Weimar Republic, Hyperinflation, and the Debt Crisis
Students Will Understand:
„
„
There are consequences
to unsustainable levels of
deficit and national debt.
Related Curriculum Standards:
„
III. People, Places, and Environments
Social studies programs should include experiences
that provide for the study of people, places, and
environments.
Individuals have a vested
interest in addressing our
nation’s fiscal challenges.
IV. Individual Development and Identity
Social studies programs should include experiences
that provide for the study of individual development and
identity.
Students Will Be Able To:
„
Ask good questions and
make inferences.
„
Develop and test
hypotheses.
„
Recognize, explain, and
analyze causes and
consequences.
National Council for the Social Studies
V. Individuals, Groups, and Institutions
Social studies programs should include experiences
that provide for the study of interactions among
individuals, groups, and institutions.
„
National Voluntary Standards in Economics
Standard 12: Role of Interest Rates
Students will understand that interest rates, adjusted
for inflation, rise and fall to balance the amount saved
with the amount borrowed, which affects the allocation
of scarce resources between present and future uses.
Standard 16: Role of Government
Students will understand that there is an economic role
for government in a market economy whenever the
benefits of a government policy outweigh its costs.
Governments often provide for national defense,
address environmental concerns, define and protect
property rights, and attempt to make markets more
competitive. Most government policies also redistribute
income.
Standard 20: Monetary and Fiscal Policy
Students will understand that federal government
budgetary policy and the Federal Reserve System’s
monetary policy influence the overall levels of
employment, output, and prices.
„
UCLA World History Standards, Era 7 – A HalfCentury of Crisis and Achievement
Standard 3A: Analyze how the governments of Britain,
France, Germany, and Italy responded to the economic
and political challenges of the postwar decade.
Standard 4A: Analyze the relative importance of the
legacy of World War I, the depression, ethnic and
ideological conflicts, imperialism, and traditional
political or economic rivalries as underlying causes of
World War II.
282 Understanding Fiscal Responsibility
Is it possible to make a causal connection between the economic
conditions and the social and political changes in the Weimar Republic?
Lesson
18
List of Lesson Resources:
1. The Results of Hyperinflation (Images 1-4)
2. The Results of Hyperinflation (Images 5-7)
Time Required:
2 class periods
Entry: (20 Minutes)
Ask students to evaluate four historical pictures (Resource 1). Encourage them to describe what
they see in the pictures and ask them to explain what is taking place. Some guiding questions that
may help with this evaluation:
x
x
x
x
x
What do you notice about this picture?
If you were to give the picture a title, what would it be?
What is the main topic of the picture?
What can we learn from what we see in the picture?
Could a similar picture be taken today in the United States? Why or why not?
Inform students that during the time when these pictures were taken, bills and banknotes had no
value whatsoever. Then ask students the following question:
x
What effect might this have on the lives of people at the time and place when the
pictures were taken?
[They would not be able to buy food, they would lose faith in the government,
they would be very angry.]
Following this discussion, students should begin to understand that when a currency rapidly loses its
value, society enters a period of crisis.
Note: Help students understand that without a stable currency, people find it difficult (if not
impossible) to pay for the basic necessities of life. The monetary system is based on trust, and when
that trust is lost, people are unwilling or unable to use the currency for buying and selling.
Lesson Strategies and Activities:
Day One
Part 1 (15 minutes)
Reveal that the pictures studied in the introductory activity were taken in Weimar Germany. Based
on the materials found in their world history course texts, provide students with a brief explanation of
Understanding Fiscal Responsibility 283
World History and
Geography
The Weimar Republic, Hyperinflation, and the Debt Crisis
the establishment of the Weimar Republic following World War I. The following guiding questions
could be used to ensure that students understand the topic:
x
x
x
x
When did the Weimar Republic exist?
Why was it formed?
What was the economic situation in the Weimar Republic?
What factors (domestic and international) influenced the economy of the Weimar
Republic?
Part 2 (15 minutes)
Refer students to the images discussed in the introductory activity and explain the following
concepts:
x
x
x
x
Definition, causes, and effects of economic inflation
Definition, causes, and effects of hyperinflation
Inflation is not bound to a specific place or time.
The existence of a national debt is one reason for hyperinflation (though having
some debt does not automatically lead to hyperinflation).
Note: Background information on inflation and hyperinflation can be found in the Primer of this
curriculum.
Day Two
Part 1 (15 minutes)
Show pictures of the ways in which inflation in the Weimar Republic influenced everyday life
(Resource 2). Ask students to imagine that the documents are from present-day America and lead
the class in a discussion about what it would have been like to live under these conditions and what
feelings they would have toward the government and society in general. Use the following questions
to guide this discussion:
x
What influence would hyperinflation have on citizens’ trust in their government?
[Inflation leads to mistrust in the government because when money loses value,
the government is blamed for not protecting its citizens.]
x
What are the implications for social order during such a situation?
[Hyperinflation may lead to general social upheaval as well as collapse of the
financial industry.]
x
Specifically concerning the Weimar Republic, who besides the government might the
citizens blame for the situation?
[When people feel powerless, they look for scapegoats just as people in the
Weimar Republic chose to scapegoat Jews.]
284 Understanding Fiscal Responsibility
Is it possible to make a causal connection between the economic
conditions and the social and political changes in the Weimar Republic?
Lesson
18
Part 2 (25 minutes)
Divide the class into three groups and discuss the ways in which the social, political, and
international factors intertwined with economic factors in the Weimar Republic. Assign each group
one type of factor (social, political or international) and ask students to examine the relationship
between this factor and the economy.
Before beginning, ask students to develop at least three questions they feel they need to answer to
understand the significance of the factor they are examining. If necessary, use the questions below
to supplement those developed by the groups.
Social Factor
x
x
x
Was the Weimar Republic a more homogeneous or heterogeneous society?
What minorities existed? How were they treated?
How did the economic situation influence society?
Political Factor
x
x
What were the advantages and disadvantages of the political system in the
Weimar Republic?
How was the political system influenced by the economy?
International Factor
x
x
How did the international community influence the Weimar Republic?
How was the economic situation in the Weimar Republic related to its
international relationships?
Encourage students to use information discussed in the lesson as well as information found in their
world history course texts to answer these questions. When each group has answered the
questions, students should present their findings to the class.
Closure: (10 minutes)
Ask students to define the main idea of this lesson. Students should be asked to discuss if there is a
basis for concluding that the economic conditions of a country are connected to its social, political,
and international circumstances.
As homework, ask students to respond to the following questions:
x
Does the example of the Weimar Republic and its eventual collapse into the hands of
the Nazi party prove that such a crisis will always happen under similar
circumstances?
x
What other ways might this crisis have been resolved?
Understanding Fiscal Responsibility 285
World History and
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The Weimar Republic, Hyperinflation, and the Debt Crisis
Assessment:
To assess students’ understanding of the social, political, and economic effects of hyperinflation,
review the group responses from Day Two, Part 2, along with the homework assigned as part of the
closure activity. These two examples of student work will demonstrate their understanding of the
concepts discussed throughout this lesson.
Further Engagement (Optional):
Show excerpts from the film Cabaret and ask students to analyze its depiction of the Weimar
Republic. Encourage students to identify the social, political, international, and economic conditions
of the Weimar Republic. Debrief the film around the following question:
x
To what extent are conditions in the United States today similar to or different from
the film’s depiction of Germany in the 1920s?
References Cited:
Ang, O. (1923, October). Ein Million-Markschein als Rechnungsblock. Findige Leute benutzen die Rückseite
des Einmillionenscheines zum Schreiben; ein neuer Block würde Milliarden kosten The German
Federal Archive. Retrieved from http://www.bild.bundesarchiv.de/archives/barchpic/search/
_1281551711/?search%5Bview%5D=detail&search%5Bfocus%5D=24
Deutsche Reichspost. (c. 1945). Retrieved August 13, 2010 http://upload.wikimedia.org/wikipedia/commons/
2/2a/Germaninflation.jpg
Graham, F. (1930). Exchange, prices and production in hyper-inflation: Germany 1920-23. Princeton, NJ:
Princeton University Press.
Greenbaum, G. M. (2008, July 7). Inflationmedal.jpg, Retrieved from http://en.wikipedia.org/wiki/File:
Inflationmedal.jpg
Greensburger. (2009, July). Table IV. In C. Bresciani-Turroni (1937), The economics of inflation (p. 441).
Retrieved August 13, 2010 http://en.wikipedia.org/wiki/File:GermanyHyperChart.jpg
Tapezieren einer Wand mit Ein-Markscheinen welche heute um vieles billiger sind wie eine Tapete (1923).
The German Federal Archive. Retrieved from http://www.bild.bundesarchiv.de/archives/barchpic/
search/_1281551711/?search%5Bview%5D=detail&search%5Bfocus%5D=9
286 Understanding Fiscal Responsibility
Lesson
18
WORLD HISTORY AND GEOGRAPHY
The Weimar Republic,
Hyperinflation, and the
Debt Crisis
Resources
The following section is formatted for the easy reproduction of resources
intended for use by students. They appear in the order in which they are listed
in the Introduction and are essential to the lesson. These resources may also
be downloaded from the Understanding Fiscal Responsibility website:
http://understandingfiscalresponsibility.org/
Understanding Fiscal Responsibility 287
World History and
Geography
The Weimar Republic, Hyperinflation, and the Debt Crisis
Resource 1. The Results of Hyperinflation (Images 1-4)
Source: The German Federal Archive (Deutsches Bundesarchiv) as provided by the Digital Image
Archive at: http://www.bild.bundesarchiv.de
288 Understanding Fiscal Responsibility
Is it possible to make a causal connection between the economic
conditions and the social and political changes in the Weimar Republic?
Lesson
18
Resource 2. The Results of Hyperinflation (Images 5-7)
Source: Released by the copyright holder Deutsche Reichspost (before 1945) at:
http://upload.wikimedia.org/wikipedia/commons/2/2a/Germaninflation.jpg
A medal commemorating Germany’s 1923 inflation. The
engraving reads: “On 1st November 1923 1 pound of
bread cost: 3 billion, 1 pound of meat: 36 billion, 1 glass of
beer: 4 billion.”
Source: http://upload.wikimedia.org/wikipedia/
commons/3/39/Inflationmedal.jpg
Source: Artwork by Greensburger July 2009
based on numbers in Table IV (page 441) of
The Economics of Inflation by Costantino
Bresciani-Turroni, published 1937 at:
http://en.wikipedia.org/wiki/File:GermanyHyperC
hart.jpg
Understanding Fiscal Responsibility 289