Economic Development and Policies

Question 1

After World War 1, how much did the German Mark’s value decrease by?

Answer 1

%75

Question 2

What industrial areas were seized?

Answer 2

Saar region.

Question 3

Who was the first president of Weimar Republic?

Answer 3

Friedrich Ebert

Question 4

Who were the two generals that were running Germany as a ‘silent dictatorship’ after 1916?

Answer 4

Hindenburg and Ludendorff.

Question 5

What were the politicians of the republic called, by the dissatisfied people of Germany?

Answer 5

The November Criminals.

Question 6

Give the terms of TOV

Answer 6

• Army reduced to 100,000 men, navy reduced to 6 battleships.
• Germany lost territory.
• Saar seized, Rhineland occupied by France.
• Anchluss banned.

Question 7

What is hyperinflation?

Answer 7

Where prices spiral out of control because the government prints more money.

Question 8

How did WW1 contribute to the early crisis years? (1919-23)

Answer 8

• Germany borrowed money for the war (85% of money was borrowed by 1918.)
• Reparations (£6.6 billion) demanded in gold, Germany had to print more money.

Question 9

How did Weimar’s constitution contribute to the hyperinflation crisis of 1923?

Answer 9

The constitution made social security a right, so Germany had to support the poor.

Question 10

What event triggered the hyperinflation crisis of 1923?

Answer 10

The French occupation of Ruhr, in 1923.

Question 11

Who suffered during hyperinflation?

Answer 11

• Anyone with savings
• People on fixed incomes/pensioners.
• Wages became worthless.

Question 12

Who benefited during hyperinflation?

Answer 12

• Anyone with debts, mortgages or loans.

- Groups of businessmen and homeowners, who bought businesses/houses cheaply.

Question 13

How did Stressemann deal with hyperinflation during Stressemann Years? (1923-29)

Answer 13

• Sharp cuts in govt spending to reduce national debt.
• New German currency, Rentenmark in 1923.
• Negotiated a fixed timetable for reparation payments in the Dawes Plan 1924.

Question 14

What evidence is there of a more stable economy under Stressemann 1924-29?

Answer 14

• Certain sectors of the economy prospered; Chemical company I.G Farben became the largest in Europe.
• Exports rose by %40 between 1925-29.
• Inflation and unemployement remained low.

Question 15

What evidence is there of imporved living standards under Stressemann?

Answer 15

-Wages rose every year between 1924-1929.

Question 16

What was the main weakness of the German economy 1924-1929?

Answer 16

Economic recovery too dependant on the USA - When the effects of the Wall Street Crash and Great Depression happened, USA wanted loans back.

Question 17

What evidence is there that the German economy had not fully recovered by 1929?

Answer 17

• Agriculture was in recession by 1925. Farmers’ incomes was %44 below the national average.
• Unemployment did not fall below 1.3 million and levels were climbing before 1929.
• Overseas trade sluggish. Germany imported more than exported.

Question 18

How did Wall Street Crash contribute to the Depression in Germany?

Answer 18

• US Loans and investments immediately dried up. America demanded repayment of loans.
• Demand for exports collapsed as other countries reduced their imports- world trade slumped.
• Without USA loans and with export trade falling, prices + wages fell and bankruptcies increased.

Question 19

How far did the Wall Street Crash contribute to the depression in Germany?

Answer 19

Even without WSC, Germany economy would probably have faced Depression. WSC was a final bush. Determined the timing of Depression, made effects much worse.

Question 20

Name 4 effects the Depression had on Germany’s economy?

Answer 20

• National income shrunk by %39 between 1929-32
• Number of unemployed rose to over 6 million. 1/3 workers jobless.
• 50,000 major businesses bankrupt.
• 5 major banks collapsed in 1931.

Question 21

How did Stresemann solve the problem of Germany being internationally isolated?

Answer 21

• Negotiated Dawes and Young Plan.
• Germany joined League of Nations.
• Signed Locarno treaty, agreeing to borders set by ToV.

Question 22

How did Stresemann solve small businesses going bankrupt?

Answer 22

-Encouraged cartels. (BUsinesses join together to control the market.)

Question 23

How did Stresseman solve high government spending?

Answer 23

• Heavy German borrowing - economy depended on short term loans.
• Heavy German spending subsidised.

Question 24

When are the Stresseman Years?

Answer 24

1923-29