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A Level History-Germany > 2.5 Economic Developments > Flashcards

2.5 Economic Developments Flashcards

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1
Q

Why was stresmann’s coalition different to other coalitions?

A

First one to include
DVP(stresmann’s party)
DDP
-centre and SPD

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2
Q

When did stresmann take over and when did his government collapse?

A

August 1923
Nov 1923

103 days

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3
Q

What were the three aspects used by stresmann to keep inflation under control?

A

-end of passive resistance

-issuing of a new currency

-balancing the budget

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4
Q

Describe the end of passive resistance?

A

-it was paying Germans not to work for the French in the Ruhr and it was called of in September

It was highly unpopular and led to serious unrest and the attempted Beer hall Putsch in Munich

-essential step in reducing government expenditure

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5
Q

Describe in full the issuing of the new currency?

A

-Retenmark introduced to replace the Reichmark in November

1 Retenmark= 1 trillion marks (Germany did not have sufficient gold reserves to stabilise this currency

-August 1924 Retenmark became Reichmark and was backed by the German gold reserve which was worth 30% of Reichmark in circulation

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6
Q

Who did the formation of the new currency come under?

A

Hjalmar Schacht

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7
Q

What did stresmann do to balance the budget?

A

-cut expenditure
-increases taxes(individuals and companies)
-salaries or government employees cut(300,000 civil servants lose their jobs)
-government debt begins to fall and confidence restored

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8
Q

What did balancing the budget do to companies?

A

Well managed companies ran prudently and not with debt prospered, the weaker companies reliant on debt and credit crumbled

Number of companies in Germany bankrupt 233 in 1923 to over 6000 in 1924

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9
Q

Give some background on Hjalmar Schacht?

A

Director of national bank from 1916 and was a co-founder of the DDP party in 1918

-financial genius for his role in stabilising the currency

-became head Riech currency commissioner and head of the Riechbank(he introduced the Retenmark)

-went on to negotiate young and Dawes plans

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10
Q

What was the stabilisation of Germany’s currency heavily dependent on?

A

Settling the reparations dispute

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11
Q

Describe what happened leading up to the Dawes plan?

A

-November 1923 stresemann asks the allies reparations committee to get financial experts to address Germany’s financial concerns

-USA wanted Germany to pay reparations to France because much of the Monet was passed onto the USA as loans

Charles Dawes(American banker) acted as the committee chairman

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12
Q

When was the Dawes plan finalised?

A

April 1924 but stresmann’s government had already fallen

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13
Q

Why did Stresmann take a lot of credit for the Dawes plan even when he wasn’t chancellor when it was achieved?

A

-he served as foreign secretary

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14
Q

What did the Dawes plan achieve for Germany?

A

-original payment of £6.6 billion(132 billion marks) remains the same but it becomes more manageable

-amount paid reduced until 1929 where situation would be reappraised to 1 billion marks a year which would be increased by 2.5 billion each year for 5 years. After this the sum would be related to German performance

-Germany receive loan of 800 million from USA to get plan started and allow for heavy investment in German infrastructure

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15
Q

What is £6.6 billion in gold marks?

A

132 billion

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16
Q

What did Charles Dawes and stresmann get for the Dawes plan?

A

Nobel peace prize 1925

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17
Q

What is evidence for stesmann not believing in the Dawes plan?

A

Called it an economic armistice he only agreed to it as a form of securing foreign loans

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18
Q

What did right wing parties think of the Dawes plan?

A

Should he rejected and Germany should refuse to pay reparations all together

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19
Q

What were the 3 ket benefits to Germany as a result of the Dawes plan?

A

-allies accepted German problems with reparation payments were real

-loans could rebuild the German economy

-France gradually left Ruhr in 1924-25 when it became clear Germany was going to start repaying reparations

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20
Q

What is a tariff?

A

Duties or taxes that have to be paid on a good entering a country

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21
Q

What did Schacht do at the Riechbank?

A

Kept investment high to attract foreign investment

22
Q

Industrial output grew after 1924 but did not reach pre war levels until…

A

1929

23
Q

When were growth rates good

A

1924-25
1927

24
Q

When were growth rates bad?

A

1928
1929

25
Q

How did German industry undergo expensive rationalisation?

A

-new management and production techniques introduced

-inadequate machinery replaced with new machinery

26
Q

By 1925 how many cartels were in operation?

A

3000
(Including 90% of Germany’s coal and steel production

27
Q

What were Germany allowed to do after 1925?

A

Protect its industries by imposing tariffs

28
Q

When did living standards begin to increase from?

A

1924

29
Q

What is compulsory arbitration?

A

Individual disputes settled by arbitration

Both sides are to follow and independent figure who decides the solution this was made compulsory by law in Weimar Germany

30
Q

Give the number of strikes from 1924-1930

A

1924-1973
1925-1708
1926-351
1927-844
1928-739
1929-429
1930-353

31
Q

Why did the number of strikes in Germany decrease?

A

-compulsory arbitration as it settled disputes

-however employers felt it was biased in favour of the unions (because the max 8 hour working day and the unions right to be included in factories and mines was introduced

32
Q

What did real wages increase for workers in 1927 and 1928 and why?

A

1927:9%
1928:12%
Because they were backed by powerful trade unions

33
Q

Evidence that Gustav stresemann did not think the economic position was favourable?

A

“The economic position is flourishing only on the surface”

-if the short-term loans are called in a large section of the economy would collapse

34
Q

What was unemployment in 1925 and March 1926?

A

1925: 1 million
March 1926: 3 million

35
Q

Why was unemployment high in 1925-1926

A

Companies were reducing their workforces in order to make more efficient savings

Mining reduced workers by 136,000 1922-1925

36
Q

Why did unemployment fall after 1926?

A

Public cuts and more people seeking work spending

37
Q

What is evidence that the Mattelstand was not benefiting in the golden age?

A

Industrial workers wages had increases up to the middle class in in some cases exceeded them

38
Q

Why were farmers losing out in the Weimar Republic?

A

Worldwide agricultural depression kept food prices low and few farmers made profit on their land, farmers borrowed money dieting hyperinflation and their savings were wiped out

39
Q

What did the government do to help farmers in 1923 and was it effective?

A

Made it easier for them to borrow money

Made the situation worse as they could not keep up with repayments

40
Q

Why was the welfare state an issue for farmers?

A

Came from their taxes

41
Q

The Government did not do enough to assist farmers but what did they do?

A

-introduced high imports tariffs
-Food products
-import controls
-subsidies to farmers

42
Q

Was the Dawes plan temporary or permanent

A

Temporary

43
Q

What caused the young plan?

A

Allied forces remained in occupation of the Rhineland and the French would not agree to withdraw forces until a final settlement with reparations had been agreed

44
Q

What did the young plan oblige Germany to do?

A

To continue paying reparations until 1988 although the total bill was significantly reduced(£1.6 billion instead of £6.5 billion but the annual payment was increased

-all foreign control over reparations was ended and it was the soul responsibility of the German government -Britain and France withdraw troops from Rhineland by 1930

45
Q

Who launched a nationwide campaign against the young plan?

A

Alfred Hugenburg of the DNVP(included Adolf hitler and the nazis)

46
Q

What did the Alfred Hugenberg’s campaign do?

A

They drew up a law (‘freedom law’)-they demanded it should be submitted to a national referendum

Law required the government to repudiate the war guilt clause of the treaty of Versailles and demand immediate evacuation of the occupied areas(ant minister who signed the treaty and was involved in the war guilt clause would be tried for treason)

47
Q

How many signatures did Hugenberg’s group get?

A

4,100,000 initially

Put to a referendum and got 5,800,000 signatures 13.8% of the electorate

48
Q

What did the Hugenberg do for hitler?

A

Enabled him to make a decisive breakthrough as a national political figure

49
Q

What was Alfred Hugenberg?

A

Civil servant and a banker before the war. Owned newspapers and film companies as well as being a deputy in the DNVP

50
Q

When is the young plan?

A

1929

A Level History-Germany (24 decks)

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