The Weimar Republic, Hyperinflation, and the Debt Crisis

Transcription

1 WORLD HISTORY AND GEOGRAPHY The Weimar Republic, Hyperinflation, and the Debt Crisis Lesson 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 19. 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. 281

2 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. Individuals have a vested interest in addressing our nation s fiscal challenges. Students Will Be Able To: Ask good questions and make inferences. Develop and test hypotheses. Recognize, explain, and analyze causes and consequences. Related Curriculum Standards: National Council for the Social Studies III. People, Places, and Environments Social studies programs should include experiences that provide for the study of people, places, and environments. IV. Individual Development and Identity Social studies programs should include experiences that provide for the study of individual development and identity. 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 Half- Century 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

3 Is it possible to make a causal connection between the economic conditions and the social and political changes in the Weimar Republic? Lesson 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: 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: 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

4 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: 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: 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: 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.] 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.] 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

5 Is it possible to make a causal connection between the economic conditions and the social and political changes in the Weimar Republic? Lesson 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 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 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 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: 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? What other ways might this crisis have been resolved? Understanding Fiscal Responsibility 285

6 World History and Geography 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: 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 _ /?search%5Bview%5D=detail&search%5Bfocus%5D=24 Deutsche Reichspost. (c. 1945). Retrieved August 13, /2a/Germaninflation.jpg Graham, F. (1930). Exchange, prices and production in hyper-inflation: Germany Princeton, NJ: Princeton University Press. Greenbaum, G. M. (2008, July 7). Inflationmedal.jpg, Retrieved from Inflationmedal.jpg Greensburger. (2009, July). Table IV. In C. Bresciani-Turroni (1937), The economics of inflation (p. 441). Retrieved August 13, Tapezieren einer Wand mit Ein-Markscheinen welche heute um vieles billiger sind wie eine Tapete (1923). The German Federal Archive. Retrieved from search/_ /?search%5bview%5d=detail&search%5bfocus%5d=9 286 Understanding Fiscal Responsibility

7 Lesson 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: Understanding Fiscal Responsibility 287

8 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: Understanding Fiscal Responsibility

9 Is it possible to make a causal connection between the economic conditions and the social and political changes in the Weimar Republic? Lesson Resource 2. The Results of Hyperinflation (Images 5-7) Source: Released by the copyright holder Deutsche Reichspost (before 1945) at: A medal commemorating Germany s 1923 inflation. The engraving reads: On 1st November pound of bread cost: 3 billion, 1 pound of meat: 36 billion, 1 glass of beer: 4 billion. Source: 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: hart.jpg Understanding Fiscal Responsibility 289