economic development and policies 1918-89 Flashcards
explain the causes for economical crisies in 1918-23
germanys debt following the end of the war- 16 billion ,
all money spent on the war effort borrowed 150 million
invasion of the ruhr led to passive strikes and inflation then hyperinflation
define the black market
illegal traffic or trade
what were the goverments response to the invasion of the ruhr
january 1923
govenment were unable to pay off debts in fall , ordered the workers to not accept orders from non germans and strike -passive ressistance
how did germany overome this crisisof the ruhr
what werew the limitations
2
- october 1923 a temporary currency the rentenmark was established , however people objected as it had such a low value against the gold mark
- gov issued emergancy decrees to control rents, wages and prices to stabalise the economy
how much did germany owe in reparations
132 billion gold marks
what measures where taken by stresseman and gov to bring economic recovery
- introduction of the rentenmark in 1923
- recovery of business
- trade recovery
- agriculture
- gov spending
reduced reparations temorarily
explain the dawes plan
sep 1924 , set to lower reparations onky had to pay 1 billion marks per year for the first 5 years after 2.5 billion marks
germany was loaned 800 million marks from USA
explain the young plan
january 1930 also reduced reparations by 20% , germany was to pay 2 billion marks per year would take 59 years to pay back
USA was still loaning money from J.P morgan
what impact did the great depression have economically
business sell fewer goods so staff is layed off– unemployment rises so people have less money to spend, unable to pay for rent / more unemployment so bankrupcies some banks fail due to loans not beinf paid back
what impact did the great depression have politically
a sharp fall in industrial production meant prices also fell, the parties in the grand coalition were not co-operating without stressemann, the government failed to cope with the great depression and did’nt make descions quickly so hindenburg was replaced by chancellor bruning in 1930 who suggested pay cuts and higer taxes.
brunings policies: wage cuts,rent cuts,tax rises
hoover moratorium and different chancellors repacement.
what was the govermenst response to the great depression
- 1931 hoover moratorium - international agreement suspened the need for germany to pay back loans / interest on them for a year ,
- accompanied by brunings policies.
- Bruning was replaced by Von papen who introduced tax concessions and subsadries for buisnnesses
- von schleicher replaced von-papen was given RM500 but did not do anything with it .
living conditions, births , food , unemployement
how did living standards change between 1919-23
many familes lived in cramped housing,poorest shared one room children were often expected to give up their bed for loging in 1925 berlin pop were 4 million with 130,500 lodgers. by 1930 unemployment rose to 14% in 1932 this was 29.9%.
there was severe food shortages - alternative foods were used ‘k brot’ majority if the food was sent to the front
infant mortality and still births due to poor health of the mothers, malnutrition was common over 90% of children aged 2-6 were malnaourished
did living standards improve and why
althought the gov did implament benefits for the poorest and pensions [unemployment insurence law 1927] .
inflations made it impossible for the economy to recover , unemplyment rose higher, real wages in 1930 were 97%.
due to high unemployemnt women scraped by doing badly paid jobs which required long hours such as sewing but was paid with buttons [ unstable econoym]
explain nazi econmic policies
- employment schemes [ reich labour scheme]
- 4 year plan [flopped]
- managing agriculture - increased tarriff on german produce
- managing busines l- 1933 law for the protection of retail trade stopped smaller shops from opening
- seconf 4 year plan focused heavily on autarky and strengthning the army , producing syntheitc products ‘buna’ rubber and biofuel
- guns v butter debate
over stretched economy … germans returnning from war
what were the living standards like in 1939-45 what impact did the war have
the war led to an overstreched economy in 1945 war production was affeceted badly by allied bombing severly damaged factories,mines,roads, loss ofland which provided raw materials , damage to electricity water and gas, sabotsge done by foreign workers .
what is a social market economy
a free market economy with elements if social support for the poorest built in such as benefits and pensions…property possesion.
how did the FRG economy recover between 1939-45
what was the economic miracle?
refers to 1955-66 when the german economy improved rapidly and the factors whihc contributed to this , the korean war, new investment , workers[ influx of refugees
germnay did face many recessions
to what extent was there an economic miracle
