dawes and young plan Flashcards
What did the Dawes Plan do to help with reparations?
1) The amount paid each year by Germany was to be reduced until 1929.
2) Germany should pay 100 million marks and this should be raised by annual increments over 5 years by 2500 million marks per year.
3) Germany should get a loan of 800 million marks from the USA to help get the plan started and allow for heavy investment in German infrastructure.
When was the Dawes Plan agreed and accepted?
July 1924
What benefits did this plan bring?
1) The Allies accepted that Germany’s problems with the payment of reparations were real.
2) Loans were granted with which new machinery, factories, houses and jobs could be provided and the German economy rebuilt.
What did the Young Plan do?
reduced the total amount of reparations demanded of Germany to 121 billion gold marks, almost $29 billion, payable over 58 years
The Young Plan allowed the german government to lower taxes which increased public spending power. This boosted the german industry and created more jobs