Chcpater 5 - Economic Devlppments Between 24'-28 Flashcards
1
Q
What did the end of passive resistance signify?
A
Occupation of the Ruhr called off
Streseman calculated no economic alternative, as Germany’s economy was grinding to a hold and inflation was out of control
Stopping payments to those who refused to work was essential in economic recovery
2
Q
Summarise how the issuing of a new currency ensured economic stability
A
- rentenmark brought in to replace reichsmark
- new currency was exchanged for 1 per 1 million of the old reichsmarks
- supported by mortgages and industrial land
- government kept tight control of money in circulation in order to prevent inflation
- rentenmark became the Reich mark again maintained at 30% of the reichsmarks in circulation, backed by german gold reserve
3
Q
Summarise how Streseman balanced the governments budget
A
- cut government expenditure and raised taxes
- government employees jobs cut and taxes raised universally
- managed companies ceased to build up signifcant debt
- compsamnies who relied on credit crumbled
4
Q
Dawes plan
A
- amount repaid to allies each year should be reduced until 1929 - situation would be appraised
- germany would start by paying 1000 million marks
- raised annually each year by 2500 million marks, then would relate to german industrial, performance
- regional sum was agreed as £6.6 billion
5
Q
What benefits did the Dawes plan bring to germany?
A
- allies accepted s Germany’s problems as real with reperations
- loans could be used to invest in economic performance
- germany became more independent
6
Q
What was the general trend within industry between 1924-28’:
A
- measures to bring inflation under control improved industry massively
- investing in chemicals, machinery etc.. were developed and raised living standards
- there was political instability as a result of mass population growth in 1924 - 200,000 dwellings built in 1926, to accommodate for overcrowding in working class cities
- more dwellings and buildings produced in 1925 and 1926
- welfare payments and health improvements in 1924, relief schemes etc…
7
Q
How did standards for workers in industries improve in Weimar years?
A
- compulsory arbitration spelled industrial disputes
- employers resented this system
- trade unions could be part of councils and maximum working days were set at eight hours
- employers locked out workers in 1928 over a wage dispute -
- improved workers standards - after 1924 especially, in 1927 wages increased by 9% and 12% in 1928
8
Q
What were some of the limits to the economic recovery to germany?
A
- unemployment had continued - by 1925 unemployment was 1 million and 3 million in 1926, it fell after this
- more people seemed work, there were more spending cuts and reduction in work forces for savings
- mittletsand became bankrupt, middle class managers and bureaucrats did not benefit from economic recovery
- industrial workers wages had drawn level with that of the middle class
9
Q
Effects of agriculture:
A
- food prices and profit of loans extremely low in 20’s
- money farmers was wiped out by inflation
- borrowed money inflated debts of farmers significantly
- introduction of high import tariffs, control;s and subsides to farmers barely helped
- plight of farmers worsened in 1925 due to price slump
- farmers protested in late 20’s against foreclosures and bamnkrucies in ‘farmers revenge’
- by 1929 agricultural production was at less than 3 quarters of its pre-war level
10
Q
Young plan 1929, and why it was set up:
A
- allied forces wouldn’t leave Rhineland unless a long term reparations solution was drawn up
- young plan obliged relations until 1988 - with required sum shrinking to 1.8 £ billion
- annual payments did increase
- fore ring control of reperations ended
Britain and france would withdraw Rhineland troops by 1930
11
Q
Domestic reaction to the young plan:
A
- inflamed nationalist opinion - Hugenburg on the DNVP - launched a nationwide campaign against the plan, involved other conservative groups
- demanded a referendum - freedom law was put to reichstag and feta tend on referdum - but showed depth of nationalist opinion with 13.8% voting for it
- paved the way for Hitler’s political emergence
