Part 11/15:
Germany’s government responded to burgeoning deficits by raising taxes, especially on incomes. However, high inflation rendered these measures ineffective and increased the tax burden on ordinary citizens, who saw their wages rise artificially in tandem with prices. Wealthier Germans and industrialists capitalized on the chaos, engaging in foreign currency speculation and hiding assets abroad to evade taxes. News reports in 1921 chronicled a surge in currency speculation, with Germans stockpiling foreign banknotes to escape devaluation and taxes.