Economic recovery Flashcards
What helped stimulate the economy?
American loans
How was the country extensively rationalised?
New management and production techniques were introduced.
Old machinery was replaced
Which industries developed?
Car and aeroplane
What did loans finance?
Schools, housing, road and public works
Why did strikes decrease?
Compulsory arbitration
What is arbitration?
Where both sides (during industrial disputes) agree to allow and independent figure decide on a solution
What were cartels?
Where big industries bought out/made agreements with smaller firms
How many cartels were there in 1925?
3000 (90% of Germany’s coal and steel production).
What were the perks of cartels?
- Fixed prices
- protected profits
- Reduced competition
- Allowed reinvested profits
How many dwelling were built in 1925-26?
1925 = 178,930
1926 = 205,793
What improvements were there in social industry?
- Money spent on welfare
payments and health
improvements. - Improvements on living
standards for those
represented on trade unions.
How much did real wages increase in 1927-28?
1927 = 9%
1928 = 12%
How were farmer affected by the economic recovery?
- They gained very little benefit
- A worldwide agricultural
depression kept food prices low
What problems did farmers face?
1925/26 - Global grain surplus and price slump
1928 - small scale riots in protest against foreclosures and low market prices.
1929 - production less than 75% of pre war levels.
What else was a problem during the golden age?
unemployment
How many were unemployed at: Dec 1925 and March 1926?
Dec 1925 = 1 million
March 1926 = 3 million +
Why was unemployment so high?
- More job seekers
- public spending cuts
- Companies reducing
workforces to save
Who did not benefit from the economic recovery?
Middle class managers, clerks and bureaucrats.
White collar workers got no pay rise
