Streisemann and the Economic Climate Flashcards
Who invaded the Ruhr and why?
The French invaded the Ruhr in January 1923 since WR Germany was unable to keep up with reparations - WR failings.
When was Streisemann appointed Chancellor?
August 1923.
What was the new currency and when and why was it introduced?
Rentenmark in November 1923
When were the ‘golden years’ and why were they called that?
1924-29, somewhat financial stability of the WR.
What did the Dawes Plan do?
Dawes Plan, 1924 reorganised the Reichsbank, reduced reparations, took loan of 800 million from allies. Allowed investment.
What did the Young Plan do?
Young Plan, 1929 revised reparations, increased indust. production, increased wages, new welfare schemes, employment insurance from ‘27.
Who did not benefit and what was reduced?
The farmers and Mittlestand saw only 74% agri. production compared to pre-war.
What made the WSC of 1929 so damaging to the WR
Excessive loaning from USA.
What did Stresemann say about Germany’s economy before his death in 1929?
“the economy is doing well only on the surface. Germany is in fact dancing on a volcano”
How much did Germany borrow?
Between 1927 and 1928 alone, almost 5x the amount needed to pay reparations. There was a severe shortage of gold.
What did the industrial production and trade within Germany look like after WSC?
Between ‘29 and ‘32 decreased demand for steel, machine goods, shipping and chemicals. World trade declines and german exports’ value fell by 55%.
What did the agricultural world within Germany look like after WSC?
Agri. production was already struggling and WSC only intensified it.
How was employment affected by the WSC?
U/E increased from 132,000 (1929) to 3 million within a year, and eventually 6 million (1932). Five banks collapsed (1932).
What was the Dawes Plan?
1924 by Streisemann. Reorganise Reichsbank. Reduced reparations. 800 million loan. Investment.
What was the Young Plan?
1929 by Streisemann. Revised reparations. Increased industrial production, wages and new welfare system.
