Economic recovery 1924-29

Question 1

From 1919 to 1923 Weimar was going through the crisis, what two things were crippling the economy?

Answer 1

hyperinflation and the French occupation of the Ruhr crippling the economy.

Question 2

Stresemann was appointed chancellor of the Weimar Republic and stopped the 1923 hyperinflation crisis by the introduction of what?

Answer 2

the Rentenmark.

Question 3

How many marks did they need to pay reparations?

Answer 3

6.6 billion

Question 4

Who benefited from the hyperinflation and who lost out?

Answer 4

borrowers, such as businessmen, landowners and those with mortgages, found they were able to pay back their loans easily with worthless money.
People on wages were relatively safe, because they renegotiated their wages every day. However, even their wages eventually failed to keep up with prices.
Farmers coped well, since their products remained in demand and they received more money for them as prices spiralled.
Hyperinflation losers:
People on fixed incomes, like students, pensioners or the sick, found their incomes did not keep up with prices.
People with savings and those who had lent money, for example to the government, were the most badly hit as their money became worthless.

Question 5

Who owned 1,535 companies by 1924?

Answer 5

Hugo Stinnes- ‘King of Ruhr’ benefited by 1924 he owned 1,535 companies.

Question 6

The period of 1924-1929 is called what?

Answer 6

“the golden years of Weimar”

Question 7

What does R J Evans say about the recovery of the economy?

Answer 7

“Recovery was an illusion created by hindsight”

Question 8

What does Lee say about the economy producing welfare states.

Answer 8

Lee said “the Weimar republic successfully produced one of the most advanced welfare states in the western world”

Question 9

Under the Dawes plan of 1924 reperations would be paid over 5 year annual payments the would rise from what to what?

Answer 9

1 billion to 2.5 billion

Question 10

How many million marks was Germany loaned to help stabilise the economy

Answer 10

0.8 billion

Question 11

The ‘Atlanticist strategy’ of Schacht and Stresemann. Given that American influence would continue to grow it was crucial for Germany to build what?

Answer 11

special economic relationships with the USA enabling reparations repayments to be put on a business like basis (Dawes Plan).-

Question 12

How many billion marks US investment did Germany receive 1924-29

Answer 12

25 billion

Question 13

Under the young plan of 1929, the total reparations were reduced from 6.6 billion to what?

Answer 13

2 billion

Question 14

Under the young plan Germany were given how many years to pay?

Answer 14

59 years

Question 15

Low reparations under the young plan allowed the government to do what?

Answer 15

lower taxes

Question 16

Lower taxes= what?

Answer 16

higher spending

Question 17

Germany only ever paid what percentage of operations??

Answer 17

1/8th

Question 18

Until 1927 reparations payments were lower than they had been in what a percentage of German GDP?

Answer 18

1923

Question 19

Investment from USA was short-term, and the economy became what?

Answer 19

too dependent on this investment

Question 20

Germany still struggled to do what?

Answer 20

repay loans

Question 21

Stresemann speech in November 1920 about by the reliance on foreign short-term loans as a public speech saying what?

Answer 21

“Germany is dancing on a volcano” suggest he is ongoing concerns about the real strength of the economy.

Question 22

The Dawes plan relied on American Loans which could be pulled at any moment illustrated by what?

Answer 22

illustrated by the Wall Street crash of 1929)

Question 23

What does Bookbinder argue about Germany industrial production?

Answer 23

1. Bookbinder argues this when he says, “by 1929 Germany had become the world’s second industrial power behind the USA. Real wages and standards of living rose”.

Question 24

What does Lee say about loans foreign?

Answer 24

Made Germany Vulnerable to US Market Fluctuations

Question 25

What does Henig say about the Dawes plan?

Answer 25

the plan was beneficial but provoked right wing hatred who saw it as an ‘enslavement off the allies’

Question 26

What does Peukert say about the Dawes plan?

Answer 26

The Dawes Plan granted Germany a reasonable scale of reparations payments but they relied to heavily on US Funding.

Question 27

What does Snyder say about hyperinflation?

Answer 27

“Hyperinflation was the scar that never healed”

Question 28

What does Henig say about disillusionment with the republic?

Answer 28

Disillusionment with the republic continued to grow in this time.

Question 29

WHat does carr say about the extent of the boom?

Answer 29

“The extent of the boom has been exaggerated and masked a chronic political weakness”

Question 30

Between 1923-29 what happened to Germany’s industrial output?

Answer 30

doubles

Question 31

By 1929 Germany had become what behind the USA?

Answer 31

second industrial power

Question 32

1926-29 Germany had what percent of industrial production (world)?

Answer 32

11.6%

Question 33

What happened to Germanys trade deficit in 1924-29?

Answer 33

growing

Question 34

By 1929 production was back to what levels but still significantly smaller than other European countries?

Answer 34

1913

Question 35

Heavy industry was struggling to make any profits why?

Answer 35

strikes and no longer needed for war production

Question 36

Imports were rising faster than exports which meant what?

Answer 36

trading at a loss

Question 37

Germany economic growth was behind what countries?

Answer 37

USA, France AND UK

Question 38

The new retenmark was valued at what?

Answer 38

one retenmark to 1 trillion old marks

Question 39

Describe how the retenmark restored confidence in the economy?

Answer 39

The currency was now worth something in sorted out the hyperinflation crisis of 1923. Key role of Schacht as special currency commissioner in the Finance Ministry; introduction of the Rentenmark; curbing of inflation; Reichsmark (1924) pegged to gold. -Restored confidence in the economy

Question 40

Fewer strikes between 1924-28 showed what?

Answer 40

economic stablity

Question 41

The resultant economic upswing financed by short-term investments of foreign capital; lead to what?

Answer 41

housing and public buildings construction boom; modernization of many areas of German industry. - confidence in the economy again.

Question 42

Unemployment insurance scheme (1926-1927) protected how many workers against job loss.- confidence in the economy again.

Answer 42

17,000,000

Question 43

Economic stability by 1927 made government feel it was possible to introduce guarantees of what?

Answer 43

income under welfare legislation. - confidence in the economy again.

Question 44

Wages increased meaning there was a growth in what?

Answer 44

growth in consumerism

Question 45

Name a few things that were built as a result of the government and the people having the confidence in the economy again?

Answer 45

New roads, public buildings and schools built– confidence in the economy again.

Question 46

In collective bargaining, the system of whar tended to favour the trade unions (eg 1928 Ruhr iron and steel industry dispute).- workers liked that favoured economy

Answer 46

arbitration

Question 47

Nominal hourly earnings, real hourly earnings and real weekly earning net of tax all did what?

Answer 47

all grew

Question 48

Unemployment stayed above what put enormous strain on the welfare services?

Answer 48

1 million

Question 49

Agricultural prices did what after 1927 causing anger from farmers?

Answer 49

dropped

Question 50

The extension of the welfare state after 1927 was costly and many resented these increased costs passed on people in what form?

Answer 50

in the form of higher taxes.

Question 51

What percentage of German farmers lost their farms 1927-29?

Answer 51

1/3

Question 52

Prosperity returned for many, but others harboured resentment at what?

Answer 52

at the loss of their savings in 1923 and felt insecure