Economic Recovery under Stresemann Flashcards
What did Stresemann introduce to end hyperinflation?
The rentenmark
What did Stresemann agree to begin repaying in 1923?
Reparations
What did Stresemann negotiate with the USA in 1924?
The Dawes Plan
What was the Dawes Plan?
It was a loan from US banks that brought 800 million marks per year worth of loans into the Germany economy to be invested in German industry
What did the Dawes Plan do with relation to reparation payments?
It meant they would be paid off over a longer period of time
What evidence was there of an economic recovery during this period?
production ny 1928
industry by 1928
wages
steel by 1925
- By 1928, Germany’ production was back to pre-war levels
- By 1928, it was the world’s 2nd industrial power (after USA)
- Wages for industrial workers had increased
- In 1925, Germany produced twice as much steel as Britain
What was the German economy reliant on?
US loans - which could be recalled at any time
What did Stresemann say in 1929?
“The German economy is doing well only on the surface. Germany is in fact dancing on a volcano. If the short-term loans are called in by America most of our economy will collapse.”
When did Stresemann die?
In 1929 - a few weeks before the Wall Street Crash
Overall, how successful was Stresemann in economic terms?
He was successful to an extent. He swiftly dealt with hyperinflation and was instrumental in helping Germany’s economy recover - but that recovery was reliant on US loans. When they were recalled in 1929 following the Wall Street Crash, Germany was hit particularly badly.
