What was the primary issue during the Scissors Crisis of 1923?

Prepare for the VCE Revolutions Exam with flashcards and multiple choice questions. Each question comes with hints and explanations to ensure you grasp the key concepts. Ace your exam with confidence!

During the Scissors Crisis of 1923, the primary issue was the significant imbalance between industrial and agricultural prices. Specifically, industrial prices were dropping while agricultural prices were increasing. This created a "scissors" effect, where the widening gap between the prices for industrial goods and agricultural products led to economic instability.

As agricultural prices rose, farmers benefitted, but the costs for manufactured goods decreased, which caused problems for industrial workers and urban populations. This disparity put pressure on urban centers as food prices remained high compared to the reduced purchasing power of wages and the availability of industrial goods, leading to a sense of crisis in the economy.

Thus, the situation was driven by the interaction of these two price trends, rather than simply a flooding of food supplies in cities or a reduction in workers' wages. The critical factor was the economic tension created by the rapidly diverging prices, showcasing how interconnected these sectors were within the struggling Weimar Republic economy at the time.

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