economic developments 1914-1929 Flashcards

1
Q

what were the post war economic problems germany faced

A

printing more money in order to pay back treasury bills taken out in the war , they abandoned the link between paper money and gold reserves
price of basic consumer goods tripled
short supply of food
35 % of stuff was sold on the black market
coal mines in the saar were taken by the french in the treaty of versallies

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2
Q

what did the increase in money in circulation increase to from 1913 to 1919

A

2000 milion in 1913 to 45000 million in 1919

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3
Q

how much did national debt increase from 1913 to 1919

A

5000 milion in 1913
to
144000 million in 1919

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4
Q

how much of germany’s merchant fleet was given to the allies in treaty of versallies

A

90%

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5
Q

what was unemployment rates in 1921

A

1.8%

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6
Q

why did the econemy grow between 1920 and 1922

A

low unemployment encouraged american investment

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7
Q

by how much did prices increase between 1918-1919 and 1919-1920

A

1918-1919 doubled
1919-1920 quadrupled

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8
Q

why did german industrialists benefit from inflation

A

they could take short term loans from central banks to expand their businesses and then repay them with inflated currency

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9
Q

why did the gov benifit from inflation

A

it lessened their debt

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10
Q

why were politicians encouraged to leave the economy alone when it came to reparations

A

the policy of fulfilment suggested that if germany appeared unable to pay the reparations the allies would revise them

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11
Q

when was the first reparations paid

A

may 1921

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12
Q

when did germany fall behind in reparation payments

A

january 1923

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13
Q

when did france and belgium invade the ruhr

A

11 jan 1923

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14
Q

what was passive resistance

A

workers were promised that their wages would continue if they didnt work for the enemy

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15
Q

how did the ruhr occupation worsen germany’s economic position

A

paying workers and providing them with food drained government money
tax revenue was lost from production in the ruhr and workers who were unemployed
coal had to be imported
shortages pushed up prices further
international confidence in the mark collapsed

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16
Q

when did the monthly rate for inflation reach 50%

A

july 1922

17
Q

when did the currency become worthless

A

november 1923

18
Q

why were workers being paid twice a day

A

prices rose by the hour

19
Q

when was the rentenmark introduced

A

novemebr 1923

20
Q

who introduced the rentenmark

A

hjalmar schacht

21
Q

what was the rentenmark valued at

A

1 rentenmark to 1 trillion old marks
it was backed by land and industrial resources and supply was strictly limited

22
Q

what did the government do to reduce inflation

A

stopped offering credit to industries
lending rates were controlled
new taxes on businesses and individuals

this allowed the government to reinvest the nations wealth

23
Q

how many companies went bankrupt in 1924
why was this good

A

6000
it made the economy more efficient

24
Q

when did the rentenmark become the reichsmark

A

august 1924

backed by gold reserves

25
Q

what did the dawes plan agree in 1924

A

reduced amount of reparations paid each year until 1929

germany to pay 1000 million marks immediately and then the sum would gradually increase in relation to germany’s industrial performance

800 million mark loan from america

establish a new currency under ally supervision

26
Q

who disagreed with the dawes plan

A

DNVP and other right wing parties

27
Q

what benefits did the dawes plan bring to germany

A

allies accepted the fact that germany’s repayment issues were real
loans were invested into machinery factories houses and jobs
evacuation of the ruhr and better relations with france
optimism in Germany

28
Q

what wa unemployment like in 1926

A

20%

29
Q

what was the young plan in 1929

A

reduced total reparations payments by 75%
end allied supervision of german banking

30
Q

who disagreed with the young plan

A

schacht
right wing opposition

31
Q

what was industrial production like in 1919

A

1/3 of what it had been in 1913

32
Q

why did german industry suffer in 1916

A

british blockades
demand for conscription

33
Q

when did industrial production reach pre war levels

A

1927

34
Q

how much did german economy grow from 1913 to 1929

A

4%

35
Q

how much did american economy grow from 1913 to 1929

A

70%

36
Q

what was unemployment in 1929

A

3 million

37
Q

key industrial developments

A

industrialists rationalised (getting rid of surplus labour , introducing new tech , forming cartels )

increase in heavy industry productivity although lack of resources meant that they did not return to pre war levels

advances in chemical industry

electrical industry expanded

car and plane industry expanded

smaller industries didnt do so well because they had access to less capital and restricted markets

38
Q

why did agriculture suffer in the war years

A

conscription took labourers to the army

turnip winter in 1916-1917

low yield and high prices

international competition