Economic Developments Flashcards
What were stresemanns three key steps to bringing inflation down?
-The end of passive resistance
-The issuing of new currency
-Balancing the budget
What was the name of Stresemann’s coalition?
“great coalition”
When was passive resistance in the Rhur called off?
September 1923
Government no longer had to pay striking workers
What was the new currency?
=rentenmark
1 Rentenmark to 1 trillion Reichsmark
How did Stresemann balance the budget?
Cut expenditure and raised taxes
30,000 civil servants lost their jobs
What was the number of companies that went bankrupt on 1923 compared to in 1924?
1923= 233
1924= over 6000
What did Stresemann name the Dawes Plan?
“economic armistice”
What did the Dawes Plan do?
Confirmed reparation at £6.6 billion
Germany would receive 800 million marks from USA to invest in industry
-Amount Germany should pay should be reduced until 1929 and preposed Germany should start repaying reparations by paying 1000 million marks and that sum should be raised by annual increasements over 5 years by 25000 million per year
What were the Benefits of the Dawes Plan?
Allies excepted that Germany’s problem with paying reparations were real
loans were granted to rebuild economy
French gradually left the Rhur as it became clear Germany was going to repay the reparations = German morale improved
In 1926 how many houses were built?
over 200,000
State some improvements arguably due to the “economic miracle”
-money spent on welfare and health improvements
-1924 had 1973 strikes
-1926 had only 351 strikes
-Advancements in chemical industry
State some limits to the economic recovery
- Stresemann “the economic position is only flourishing on the surface. Germany is dancing on a volcano”
-Unemployment still issue with over 3 million unemployed in March 1926
-companies reducing workforce with mining companies reducing workforce between 1922-1929 by just over 90,000
-Worldwide agricultural depression kept food prices low therefor farmers were unable to make a profit on their land
with increased bankruptcies
-By 1929 German agricultural production was at least 3/4 less than of pre-war levels
What was the young plan?
reduced total reparations to £1.8 billion
but would still pay until 1988
=right wing angry and wanted “freedom law” with 13.8% of the electorate supporting law which arguably also suggests growing support for right wing
