My Notes on Easy Money, Easy Morals

Some notes on the effects of inflation after WWI in Germany. Taken from Easy Money, Easy Morals by Joseph T. Salerno from the Mises Institute.

  • Cost of a German newspaper.
    • Jan. 1921 3/10’ths of a Mark
    • Oct. 1923 – 2,000 Marks
    • Oct. 29, 1923 – 1,000,000 Marks
    • Nov. 17, 1923 – 70,000,000 Marks
  • Govt. created 2000 printing presses to print enough money to keep up with inflation.
  • Destroyed bank deposits and pensions.
  • Workers demanded to be paid three times a week, then soon three times a day!
  • Workers who were paid monthly quit jobs, money would be worthless by the time they were paid.
  • When woman would go to do laundry they would take laundry baskets filled with money. Thieves would dump the money out and steal the laundry baskets because they were worth more.
  • People with access to the new money became rich buying up assets.
  • Thrift was no longer a value.
  • People did not carefully plan there investments. They no longer looked to the future.
  • People spent a large amount of time hunting for bargains in order to get rid of their Marks.
  • Dowries were wiped out, sexual mores changed, woman had “boyfriends”. The social function of dowries was destroyed.
  • Gamblers and profiteers were looked up to instead of those who saved and planned for the future.

Youtube video documenting Germany’s hyperinflation.

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