GOLDEN YEARS Flashcards
Who was established as chancellor in 1923?
Stresemann
What was positive about the golden years generally?
- Economic recovery
- New currency (Rentenmark)
- Foreign Loans
- Culture
- Decline in support for extreme parties
What were the three main negatives about the golden years generally?
- Many ruined by inflation
- Continued resentment of TOV
- Farmers: falling prices
When was the new currency introduced? What was it called?
November 1923.
Rentenmark.
Why was the compensation given for savings destroyed by inflation not sufficient?
Levels were so low. Caused resentment from the professional classes.
How much had industrial production recovered?
Certainly better. However, only reached 1913 levels by 1927.
What issues did the stabilisation of the currency lead to?
An increase in cost of exports.
Unemployment reached 2 million in January 1928.
Why was the Dawes plan devised?
In order to stimulate trade and investment.
Who devised the Dawes plan? What year?
Charles Dawes, US banker.
1924.
How much did the Dawes Plan raise? What did it finance?
800 million marks in loans.
Financed an expansion in German government spending both at national and local levels.
Why was the Young Plan created? What year?
Reduce reparations and extend the period over which they were paid.
1929.
What negatives did the Young Plan cause?
Resentment among national groups in Germany who felt reparations should be cancelled entirely.
What were the negatives generally of foreign investment?
Germany was very dependant on foreign loans.
If they were withdrawn, Germany would face serious problems.
What did industry witness an increase of during these years? Why?
Strikes.
When profits rose there were clashes about whether these should be reinvested into industry or paid to workers as increased wages.
Why did agriculture not benefit from the ‘golden’ period?
Global over-production resulted in a considerable fall in prices and by 1929 nearly half of all German farms were failing to make profit.