Economic Developments Flashcards
What happened to Chancellor Cuno in Aug 1923 at the height of the hyperinflation crisis?
Govt of Cuno collapsed and was replaced by the new coalition lead by Gustav Stresemann
Why was the coalition referred to as the ‘grand coalition’?
First in history of Weimar Republic to include parties from the left and the right
What was the name of the new currency to replace to old worthless Reichsmark?
The Rentenmark in Aug 1924
Who was the person in charge of Germany’s economic transition?
Hjalmar Schacht
What did Germany do to stabilise the economy?
Nov 1923 Stresemann asked Allies’ Reparations Committee to help with the repayments and give Germany a loan
Who was head of the Allies’ Reparations Committee?
Charles Dawes
In what ways were the payments made more manageable?
The amount Germany had to pay back 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
When did living standards and wages begin to improve due to the Dawes Plan?
Very quickly - same year in 1924
What did Stresemann do in 1929 after his coalition got collapsed?
He continued to serve as foreign minister
Who was the American Businessman in charge of the 1929 Young Plan?
Owen Young
What were some of the terms of the Young Plan?
-Germany continue paying reparations until 1988
-Total bill reduced from £6.5 billion to £1.8 billion
-Foreign control over reparations was ended, responsibility for paying solely placed on German govt
-Britain and Fr agreed to withdraw all troops from the Rhineland by June 1930
Was the reaction of 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 the petition receive?
‘Freedom law’ - 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 3 1/4 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
