Germany past crisis and its characteristics!
Added: (Mon May 25 2020)
Pressbox (Press Release) -
A short history of economic crisis brings us good news: in any crisis, opportunities are created to help some people thrive. Many businesses began during full crises, and developed afterward. The entire history shows that if you have the ability to modify your viewpoint, and consider change to be positive (rather than a threat), all sorts of possibilities will begin to appear.
A Bread in Germany: from 250 marks to 200,000 million marks in 10 months
The Great Depression was a global phenomenon that resulted in the loss of jobs and inflation in different countries. I find the case of hyperinflation in Germany from 1923 especially interesting. That year, Germany printed money without tracking it, in order to pay workers who threatened to strike because of low wages.
What do you think was the result? When governments print money, what result could occur? That’s right: prices got out of control very quickly, so an unimaginable hyperinflation occurred. For example, a loaf of bread cost 250 marks in January 1923, but it soared to 200,000 million marks in November 1923, only 10 months later. There’s a famous picture of a woman throwing cash in her stove, because it was more profitable to start a fire with it than buy wood.
Sometimes, prices doubled in a few hours, and workers were often paid 3 times a day.
Yee, you read it correctly: three times a day. And their wives waited at the gates of the factories three times a day to receive the money, then quickly buy the products they needed. If they didn’t follow this procedure, the prices would be so high by the end of the shift that they couldn’t afford anything.
There were some anecdotes at that time: one boy received money from his mother for two loaves of bread, but on his way to the store, he was tempted to play a football game with his friends. After finishing the game, and going to the grocery store, he could only buy a single bread, instead of two—with the same money!
As you could guess, the economy became completely disorganized and prices spiraled out of control. A food crisis began, and farmers refused to sell their products in cities, because they were receiving money that was worthless. Workers massively lost their jobs, which led to strikes and riots. Businesses started shutting down one by one, and the entire German economy began to collapse.
However, it is worth noting that some people made fortunes during the German crisis. They took advantage of opportunities that others couldn’t see. For instance, one man borrowed money to buy a herd of cattle, but soon paid off the whole loan by selling a single cow!
Find out more about the next financial crisis here: https://cluent.net/cyber-attack-during-the-next-financial-crisis/