Economic developments Flashcards
the stabilisation of the currency, the reparations issue and the Dawes plan, the extent of economic recovery, the Young Plan
What happened to Chancellor Cuno in August 1923 at the height of the hyperinflation crisis?
The government of Cuno collapsed and was replaced by the new coalition lead by Gustav Stresemann.
Why was the coalition referred to as the ‘grand coalition’?
It was the first in the history of the Weimar Republic to include parties from both the right and the left.
What was the name of the new currency that replaced the worthless Reichsmark?
The Rentenmark, and it was introduced in August 1924.
Who was the person in charge of Germany’s economic transition?
Hjalmar Schacht.
What did Germany do to stabilise the economy?
In November 1923 Stresemann asked the Allies’ Reparations Committee to help with the repayments and give Germany a loan.
Who was the head of the Allies’ Reparations Committee?
Charles Dawes
In what ways were the payments made more manageable?
The amount Germany had to pay each year was reduced until 1929 and took into consideration Germany’s industrial output
How much money did the Dawes Plan lend Germany?
800 million marks
What did Stresemann do in 1929 after his coalition government collapsed?
He continued to serve as Foreign Minister
When did living standards and wages begin to improve due to the Dawes Plan?
Very quickly- the same year in 1924
Who was the American Businessman in charge of the 1929 Young Plan?
Owen Young
What were some of the terms of the Young Plan?
What was the biggest achievement of the Young Plan for Germany? The reparation bill was cut down to 1/3!
Was the reaction the Young Plan positive?
Not entirely, Alfred Hugenberg launched a nationwide campaign against the plan.
What was this response known as and how many signatures did Hugenberg’s petition receive?
It was referred to as the ‘freedom law’ and it received 4.1 million signatures
In what ways was the “golden age” of Weimar Germany a myth?
Welfare benefits for the unemployed and sick actually resulted in several businesses being saddled with debt
-By 1929, German agricultural production was less than three quarters of its pre-war levels
-By 1926, unemployment was up to over 3 million of the population.
-The Mittlestand (middle class) gained very little during the Golden Age only the lower incomes were raised
