economic developments 1914-1929 Flashcards
what were the post war economic problems germany faced
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
what did the increase in money in circulation increase to from 1913 to 1919
2000 milion in 1913 to 45000 million in 1919
how much did national debt increase from 1913 to 1919
5000 milion in 1913
to
144000 million in 1919
how much of germany’s merchant fleet was given to the allies in treaty of versallies
90%
what was unemployment rates in 1921
1.8%
why did the econemy grow between 1920 and 1922
low unemployment encouraged american investment
by how much did prices increase between 1918-1919 and 1919-1920
1918-1919 doubled
1919-1920 quadrupled
why did german industrialists benefit from inflation
they could take short term loans from central banks to expand their businesses and then repay them with inflated currency
why did the gov benifit from inflation
it lessened their debt
why were politicians encouraged to leave the economy alone when it came to reparations
the policy of fulfilment suggested that if germany appeared unable to pay the reparations the allies would revise them
when was the first reparations paid
may 1921
when did germany fall behind in reparation payments
january 1923
when did france and belgium invade the ruhr
11 jan 1923
what was passive resistance
workers were promised that their wages would continue if they didnt work for the enemy
how did the ruhr occupation worsen germany’s economic position
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
when did the monthly rate for inflation reach 50%
july 1922
when did the currency become worthless
november 1923
why were workers being paid twice a day
prices rose by the hour
when was the rentenmark introduced
novemebr 1923
who introduced the rentenmark
hjalmar schacht
what was the rentenmark valued at
1 rentenmark to 1 trillion old marks
it was backed by land and industrial resources and supply was strictly limited
what did the government do to reduce inflation
stopped offering credit to industries
lending rates were controlled
new taxes on businesses and individuals
this allowed the government to reinvest the nations wealth
how many companies went bankrupt in 1924
why was this good
6000
it made the economy more efficient
when did the rentenmark become the reichsmark
august 1924
backed by gold reserves
what did the dawes plan agree in 1924
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
who disagreed with the dawes plan
DNVP and other right wing parties
what benefits did the dawes plan bring to germany
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
what wa unemployment like in 1926
20%
what was the young plan in 1929
reduced total reparations payments by 75%
end allied supervision of german banking
who disagreed with the young plan
schacht
right wing opposition
what was industrial production like in 1919
1/3 of what it had been in 1913
why did german industry suffer in 1916
british blockades
demand for conscription
when did industrial production reach pre war levels
1927
how much did german economy grow from 1913 to 1929
4%
how much did american economy grow from 1913 to 1929
70%
what was unemployment in 1929
3 million
key industrial developments
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
why did agriculture suffer in the war years
conscription took labourers to the army
turnip winter in 1916-1917
low yield and high prices
international competition
