3 - Stresemann and the economic/political recovery Flashcards
Explain why the Weimar Republic was able to recover from economic crisis, 1924 - 9 (3 points)
1 - The Rentenmark (1923)
2 - The Dawes Plan (1924)
3 - The Young Plan (1929)
The Weimar Republic was able to recover from economic crisis 1924-9 because of the Rentenmark - evidence
- New currency and bank - Rebtenbank
- Tied to price of gold - had real value
- People trusted it
The Weimar Republic was able to recover from economic crisis 1924-9 because of the Rentenmark - analysis
- Hyperinflation was brought to an end. Restored the confidence in the economy
- Trusted abroad so international trade recovered - helped industry recover and began to ease shortages of goods
The Weimar Republic was able to recover from economic crisis 1924-9 because of the Dawes Plan - evidence
- Plan put forward by American banker Dawes
- Reparations temporarily halved to £50 million
- US banks would provide loans of £25 billion to help industry recover
The Weimar Republic was able to recover from economic crisis 1924-9 because of the Dawes Plan - analysis
- Germany able to pay reparation payments - French agreed to leave the Ruhr = allowed German industry to recover and industrial output doubled between 1923-8
- International trade increased and unemployment fell. Government able to raise taxes, increase national income, and begin to pay off debts
The Weimar Republic was able to recover from economic crisis 1924-9 because of the Young Plan - evidence
- Reparations reduced from £6.6 billion to £2 billion
- Germany given extra 59 years to pay off
The Weimar Republic was able to recover from economic crisis 1924-9 because of the Young Plan - analysis
- Enabled government to lower taxes = Germans could spend more = German industry flourished and more jobs created (‘virtuous cycle’ of economic growth)
- Increased confidence in Weimar Republic - 1929 votes had 85% of Germans in favour of the Young Plan
Explain why the Weimar Republic was able to recover from political crisis, 1924-29) 3 points
1 - improved economy
2 - improved standard of living
3 - improved foreign relations
The Weimar Republic was able to recover from political crisis 1924-29 because of the improved economy - evidence
- The Rentenmark 1923
- The Dawes Plan 1924
- The Young Plan 1929
The Weimar Republic was able to recover from political crisis 1924-29 because of the improved economy - analysis
- international trade improved = unemployment fell
- reparations reduced = Germans had more disposable income
- the economy recover helped boost the support for the Republic
The Weimar Republic was able to recover from political crisis 1924-29 because of the improved standard of living - evidence
- 1924, over 4% of total workforce unemployed. 1926, unemployment fell to 2 million, 1928 = 1.3 million
- Real wages increased by 25% between 1925-8
- 1927 - working week reduced from 50 hours to 46 hours
The Weimar Republic was able to recover from political crisis 1924-29 because of the improved standard of living - analysis
As a result of these improvements, the people of Germany turned away from more extremist parties and the popularity of the moderate parties (Socialists and Centre Party) increased.
The Weimar Republic was able to recover from political crisis 1924-29 because of the improved foreign relations - evidence
- The Locarno Pact (1925) was signed by Germany, Britain, Italy, France, and Belgium
- all countries agreed to open talks to consider German membership of the League of Nations
- Locarno was a great success because it made war with France less likely
- Germany now treated as equal - boost to the prestige of the Weimar Republic abroad and increased the support of many Germans in moderate political who supported the Republic
- Germany was invited to join the League of Nations in 1926
- boost to Germany’s international status - not only seen as equal but an important member of the League
- International success confidence in Germans in the Weimar Republic - Stresemann restored national pride
