This worsened the economic crisis in Germany. Government income from the Ruhr, one of Germany's most industrialised areas, was down. The Government started to print more money in order to pay the striking German workers in the Ruhr. In , the crisis was brought to an end by the Dawes Plan and the introduction of a new currency, the Rentenmark.
The German economy was now dependent on loans from the USA. The question today is not democracy or dictatorship. The question that history has put on the agenda reads: bourgeois democracy or socialist democracy. For the dictatorship of the proletariat does not mean bombs, putsches pushes , riots and anarchy, as the against of capitalist profits deliberately and falsely claim.
Rather, it means using all instruments of political power to achieve socialism, to expropriate the capitalist class, through and in accordance with the will of the revolutionary majority of the proletariat. On January 1st, , members of the Spartacist movement rose in an attempted revolution.
Initially this move was opposed by both Liebnecht and Luxemburg, the leaders of the movement. The newly formed Weimar Government reacted promptly, and brutally. The army was deployed to bring the revolution to an end, and these were aided by the Frei Corps, a paramilitary group consisting of former servicemen. Order had been restored to the streets of Berlin by the 13th of January.
Both Rosa Luxemburg and Karl Liebnecht were killed whilst in police custody. I had to cross the procession at the Brandenburg Gate, in the Tiergarten, and again in front of general staff headquarters. Many marchers were armed. Several trucks with machine guns stood at the Siegessaule. Repeatedly, I politely asked to be allowed to pass, as I had an urgent errand.
Obligingly, they allowed me to cross through. If the crowds had had determined, conscious leaders, instead of windbags, by noon that day Berlin would have been in their hands. The government acted swiftly, giving Noske dictatorial powers over all Berlin.
He immediately gave orders for 30, Freikorps troops to enter the city. In March of a right wing group, led by Wolfgang Kapp rose in Berlin. This group consisted of members of the paramilitary Freikorps and had the support of many army officers. Kapp was a right wing journalist who opposed the government on the grounds that he held it responsible for the humiliating Treaty of Versailles. This view was shared by many leading officers of the German Army, who Kapp turned to for support.
On 13th March, Luddwitz orchestrated an uprising in Berlin. Troops sympathetic to the uprising took control of Berlin and a Right Wing Government was proclaimed by Luddwitz. Ebert, the president, was forced to leave Berlin. This, if successful, would make it impossible for the uprising to succeed as they would not have the means to manage the people.
On 17th March Kapp and Luddwitz fled Berlin, the strike having been successful in making the uprising unfeasible. However, despite the relative short period of time that Kapp had control of Berlin, the uprising did make several things clear:.
Analysis of several factors is possible here. What does this mean? How could the Government ensure its survival? Why did the people of Berlin support the Government and go on Strike? Inflation is the term used to describe an increase in the cost of goods in an economy. Hyper inflation is a term used to describe levels of inflation that are very high. This was the case in Germany in the period — In January one US Dollar could buy 8.
In January one US Dollar could purchase After a series of mutinies by German sailors and soldiers, Kaiser Wilhelm II lost the support of his military and the German people, and he was forced to abdicate on November 9, In December , elections were held for a National Assembly tasked with creating a new parliamentary constitution. On June 28, the Treaty of Versailles was signed, which ordered Germany to reduce its military, take responsibility for the World War I, relinquish some of its territory and pay exorbitant reparations to the Allies.
It also prevented Germany from joining the League of Nations at that time. The law faced venomous opposition from the military and the radical left. The Constitution contained articles and covered everything from the structure of the German state Reich and the rights of the German people to religious freedom and how laws should be enacted. As war debts and reparations drained its coffers, the German government was unable to pay its debts.
The Weimar government ordered German workers to passively resist the occupation and go on strike, shutting down the coal mines and iron factories. In response, the Weimar government simply printed more money. The effort backfired, however, and further devalued the German Mark—and inflation increased at an astounding level. The cost of living rose rapidly and many people lost all they had.
According to Paper Money, written by George J. Germany elected Gustav Stresemann as their new chancellor in He ordered Ruhr workers back to the factories and replaced the Mark with a new currency, the American-backed Retenmark. In late , the League of Nations asked U. Dawes was later awarded the Nobel Peace Prize for his efforts. In addition, Germany repaired relations with France and Belgium and was finally allowed into the League of Nations, which opened the door for international trade.
In general, life improved in the Weimar Republic. But unbeknownst to Germany, America had positioned itself for an economic disaster of its own as it struggled with increased unemployment, low wages, declining stock values and massive, unliquidated bank loans. On October 29, , the U. The stock market crash had a global ripple effect. It was especially devastating for the newly recovered Weimar Republic. As the flow of American money dried up, Germany could no longer meet their financial responsibilities.
Businesses failed, unemployment rates rose and Germany faced another devastating economic crisis. During hyperinflation, the German middle class bore the brunt of the economic chaos. When another financial crisis hit, they grew weary and distrustful of their government leaders.
Searching for new leadership and fearing a Communist takeover, many people turned to extremist parties such as the Nazi Party led by Adolf Hitler , despite his unpopular and failed attempt to start a national revolution in In , the Nazi Party became the largest political party in Parliament. After a brief struggle for power, Hitler was named Chancellor in January
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