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GERMANY Golden Age > Economic > Flashcards

Economic Flashcards

1
Q

What are real wages?

A

How much you can buy from your wages

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2
Q

When did Gustav Stresemann’s coalition come into power and who did he take over from?

A

• August 1923 - height of hyperinflation
• Took over from Cuno

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3
Q

What was Stresemann’s party?

A

DVP

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4
Q

How long was Stresemann Chancellor?

A

103 days

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5
Q

What was Stresemann’s priority?

A

To bring inflation under control

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6
Q

What were the key three steps to bring inflation under control?

A

• End passive resistance
• Issue a new currency
• Balance the budget

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7
Q

When did Stresemann end passive resistance in the Ruhr and why?

A

September 1923

He felt that he had no alternative as Germany’s economy was falling and and inflation was speeding up

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8
Q

What did ending passive resistance do?

A

The government stopped having to pay workers on strike who refused to work for the French, decreasing government expenditure

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9
Q

What reactions were there to the end of passive resistance?

A

Highly unpopular, led to serious unrest and the Beer Hall Putsch (Munich Putsch)

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10
Q

Who directed the issuing of new currency?

A

Schacht with Stresemann’s help

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11
Q

When was the Rentenmark introduced?

A

November 1923

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12
Q

What was the exchange rate? _ rentenmark for ___ marks

A

1 rentenmark for 1 trillion marks

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13
Q

What was the new currency supported by as Germany did not have enough gold?

A

A mortgage on all industrial and agricultural land

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14
Q

How did the government prevent inflation reappearing once the new currency was launched?

A

Kept tight control over the amount of money in circulation

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15
Q

When did the rentenmark become the Reichsmark?

A

August 1924

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16
Q

As reichsmarks were backed by German gold reserves, how did they have to be maintained?

A

At 30% of the value of the Reichsmarks in circulation

17
Q

How did Stresemann cut government expenditure?

A

• Salaries of government employees were cut
• 300 000 civil servants lost their jobs

18
Q

Who did Stresemann raise taxes for?

A

Individuals and companies

19
Q

What happened to companies that were reliant on credit after taxes were raised?

A

Crumbled

20
Q

What did the number of companies that wefe bankrupt in Germany raise to:

____ in 1923 to ____ in 1924

A

233 in 1923 to over 6000 in 1924

21
Q

Who was Charles Dawes and what did he agree to?

A

An American Banker, a new committee’s chairman that was focussed on Germany’s repayment concerns

Agreed to the Dawes Act

22
Q

When was the Dawes Act agreed and when was it to end?

A

Agreed in 1924, ended in 1929

23
Q

What was accepted in the Dawes Act?

A

• The amount paid each year by Germany to be reduced until 1929
• Germany pay 1000 million marks at first
- Increased by 2500 million marks per year over 5 years
- After payed according to German industrial performance
• Germany recieve a loan of 800 million marks from USA for investment

24
Q

What were the consequences of the Dawes Act?

A

• The French gradually left the Ruhr during 1924-25
• Germany built new machinery, factories, houses and jobs were created

25
Q

What backlash was there to the Dawes Act?

A

• Stresemann did not like it
- Thought of it as an ‘economic armistice’
• DVNP and small right-wing groups opposed it as they believed Germany should refuse to pay reparations at all

26
Q

Who was Owen Young and what plan did he agree to?

A

He was an American bussinessman who headed an international committee

The Young Plan

27
Q

What year was the Young Plan introduced?

A

1929

28
Q

What was agreed in the Young Plan?

A

• Germany to pay reparations until 1988
• Reparations ended up only bring £1.8 billion instead od £6.6 billion
• Annual payment increased
• Responsibility for paying reparations solely on the German government

29
Q

What was the consequence from the Young plan?

A

• Britain and France agreed to withdraw all their troops from the Rhineland by June 1930

30
Q

What was the backlash from the Young Plan?

A

• DVNP leader Hugenburg launched a nationwide campaign against the plan which included other conservative groups such as Nazis
- Hugenburg launched a petition before this that got 4.135 million signatures
- Made it go through to Reichstag to get referendum
- Created the ‘freedom law’ and a referendum made where people voted for the freedom law - 13.8% of public wanted it

31
Q

In 1927, real wages increased by ___ and in 1928 they rose by another ___

A

9% 12%

32
Q

How many strikes were there in 1924 then in 1930?

A

1924: 1973 strikes
1930: 353 strikes

33
Q

What was compulsory arbitration and how did it decline strikes?

A

Both sides on a dispute agree to allow an independant figure decide a solution, often sided with the employees

34
Q

Why was compulsory arbitration unliked by employers?

A

They felt that this system was biased and in favour of unions and resented the state’s interference in their affairs

35
Q

Who did cartels form between and how many were there by 1925?

A

Between big and small industry firms

~3000 cartel arrangements in operation

36
Q

What percentage of Germany’s coal and steel production were in cartels?

A

90%

37
Q

How many dwellings were built in 1925, how much more was this than the previous year? How many more wer built in 1926?

A

178, 930 ( approx 179 000) build in 1925

Over 70 000 more than previous year

205, 793 (approx 206 000) homes built in 1926

38
Q

When could Germanystart to introduce tarrifs and under what conditions?

A

Could introduce tarrifs on imported foreign goods after 1925

Under terms of the Treaty of Versailles

39
Q

In what industries were advances made?

A

Chemical industry - artificial fertilisers

Cars & aeroplane industries

GERMANY Golden Age (3 decks)

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