Golden Years of the Weimar Republic Flashcards
When did the government of Guno colapse
august 1923
why was the Gustav Stresemann led coalition known as the Great coalition?
the first coalition to include parties from both the left and the right
what parties were the Great coalition made up of?
Stresemannns own party, the DVP shared power with the Centre Party, the socialists and the DDP
how long was Stresemann in office for
was Chancellor for 103 days
how did Stresemann plan to to recover the state of the economy and Weimar politics
caught to do so in 3 steps
- the end of passive resistance
- the issuing of a new currency
- balancing the budget
what was passive resistance
passive resistance was a popular scheme that paid the workers of the Rhur and the Rhineland who refused to work for the French
what did Stresemann do in terms of passive resistance
called off and ended passive resistance in September 1923
why did Stresemann end passive resistance
- to stop government expenditure
what was the new currency called and when was it introduced
new currency was called the Renten Mark and was introduced in November 1923
what was the value of Rentenmarks to Reichmarks
1 Renten mark was worth worth 1 trillion old marks
what was the new currency supported on
since Germany did not have sufficient gold reserves the new currency was supported by mortgages on industrial and agricultural land
how did the Stesemann government control inflation
kept tight control of the ammount of money in circulation
when did the Renten Mark become the Reichsmark
in august 1924, backed by the gold reserve
what were the general economic policies of the stresemann government
the Streseman government cut expenditure and raised taxes
the salaries of government employees were cut
some 300 civil servants lost their jobs
taxes were raised on both government and individuals
subsequently government debt fell and confidence was restored
what other factors helped recover the economy
the Dawes Plan and the Schacht’s work at the Reichsbank interest rates were kept high to attract international investment
American loans helped stimulate the economy
industrial output grew
what did loans help do
help finance new homes, buildings, schools
the economy continueed to be stable and be good until 1927
what were the limits to the economic recover from Stresemann
in a speech befo4re his death Stresemann warned that the economic position was only flourishing on the surface
if the short term loans were called in the economy would collapse - only a short term option for the economy
- unemployment was a continuing problem. in these years, by the end of 1925 unemployment had reached 1 million. due to spending cuts, more people seeking but alsoo to companies reducing their workforces to make efficiency savings for example mining companies
what was the impact of stresseman’s policies on agriculture
farmers gained very little benefits from the economic recovery of these years
a world wide agricultural depression kept food prices low
government made it easier to to take out loans for farmers however was more difficult to repay due to the struggling industry
increased taxes introduced to fund welfare payments were difficult for farmers to pay and was seen as unfair
by late 192ps there was a large increase in bankruptcies amongst farmers and many of them lost their land as the banks demanded repayments of loans
in 1928 ‘farmers revenge’ riots
what was the young plan
the Dawes Plan was only a temporary fix to the reparations issue in Germany
the Young plan acted as a replacement, it obliged Germany to continue to pay reparations until 1988, reduced bill
in return Britain and France agreed to withdraw from the Rhineland
what was the impact of the Young Plan
inflamed nationalist opinion in Germany campaign groups against the plan - considerable support
however there was no longer occupation in the Rheinland which would benefit German industry
summary of Stresemann
- inflation was brought under control with the issue of a new currency
- attracted loans to rebuild the economy
growing prosperity - however, not the experience of all germans
- farmers faced difficult trading conditions and many lost their land