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History AS1 > Strengths and Weaknesses of the Economy 1924-29 > Flashcards

Strengths and Weaknesses of the Economy 1924-29 Flashcards

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1
Q

who was Hjalmar Schacht?

A

an internationally respected finance expert who was appointed by Stresemann as Special Currency commissioner

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2
Q

What was the rentenmark?

A

A new currency, accompanied by a new national bank, providing greater stability and introduced by Stresemann

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3
Q

How to Stresemann get the French to withdraw troops from the Ruhr?

A

By promising Germany’s former wartime enemies that it would resume paying reparations.
Secured help from former Allies in reparations

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4
Q

When was the Dawes Plan?

A

April 1924

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5
Q

Who set up the Dawes Plan?

A

American expert banker Charles Dawe

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6
Q

What changes to reparations did the Dawes Plan make? (3)

A
  • Germany given more time to pay
  • Reduced to 132 000 million marks
  • More flexibility than instalments, G could pay what could over next 5 years
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7
Q

How much loans from the USA did the Dawes Plan secure?

A

800 million gold marks (over 4/5 reps)

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8
Q

When was the Young Plan?

A

1929, just before WSC and depression

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9
Q

Who set up the Young Plan?

A

Owen Young

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10
Q

What changes to Reparations did the Young Plan make?

A
  • period for repayment extended to 1988
  • negotiated rep instalments after 5yr mark from 2500mil marks to 2000 marks
  • reps reduced to 1/4 original figure
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11
Q

What did the Young Plan persuade France to do?

A

Move their troops occupying the Rhineland out 5 years in advance, in return for acceptance of the Young Plan

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12
Q

Between 1924-31, how many homes were built?

A

2 million

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13
Q

German industry achieved economies of scale because of

A

the growing number of cartels

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14
Q

Businesses benefitted from lack of —– and more —— over workers

A

strike activity and more control

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15
Q

1924-29, exports rose by

A

40%

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16
Q

What did Vereinigte Stahlweeke do?

A

United aims of coal, steel and iron production to control 1/2 of Germany’s production

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17
Q

What company in Germany became 2nd largest manufacturing power in Europe?

A

IG Farben, chemicals giant

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18
Q

Industrial production was 33% more than in 1914 by what year

A

1938

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19
Q

What did generous welfare schemes entail?

A

Good pensions and sick benefits scheme

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20
Q

How low was unemployment by 1939

A

1.3 million

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21
Q

Wages rose by as much as 5 and 10% in what years?

A

1927 and 1928

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22
Q

How large was the compulsory unemployment insurance of 1937 for workers?

A

Covered 17mil workers, largest of kind in the world

Employers partly responsible and pay half

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23
Q

What in Germany attracted foreign investors?

A

Higher interest rates on short term loans in Germany than on long term loans in own countries

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24
Q

In 1938, industrial wages rose by how much?

A

12%

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25
Q

What act was passed for farmers?

A

Farmers insurance act

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26
Q

What helped increase investment in industry?

A

American loans

27
Q

Heavy industry was revived to…

A

almost pre-war levels

28
Q

what were state subsidies invested in?

A

public amenities

29
Q

What did Bookbinder say about Germany’s manufacturing power?

A

‘2nd largest Manufacturing power behind the United States’

30
Q

Name two of the reasons that the balance of trade in Germany was always in the red?

A
  • German exports hindered by protective tariffs in many parts of the world
  • Germany handicapped by loss of resources in territories such as Alsace-Lorraine
31
Q

Focus on what badly affected the economy

A

rearmament

32
Q

What two benefits for workers put pressure on economic expansion

A

intro of the 8hr working day and welfare benefits

33
Q

What did Stresemann mean by ‘Germany is dancing on a volcano’

A

Underlying fundamental weaknesses were disguised by artificial prosperity

34
Q

What two things were short-term tricks that put the govt into more debt?

A

Mefo Bills and deficit financing

35
Q

Stresemann tightly controlled the…

A

expenditure and circulation of money

36
Q

why couldn’t the govt fund welfare schemes in constitution

A

not have enough funds

37
Q

-ve consequences of Germany’s dependency on USA loans

A

Humiliating and put G into more debt

Also made G more vulnerable to conditions of World Econ ‘when Europe sneezes, Germany catches a cold’

38
Q

How much did Germany get in US loans between 1924-30

A

25 billion dollars

39
Q

Post-1923, —- improved but —— erratic

A

economy improved but growth erratic

40
Q

Post-1923, —- improved but —— erratic

A

economy improved but growth erratic

41
Q

Rates of investment and saving were

A

discouraged

42
Q

Why wouldn’t farmers buy new machinery

A

too in debt

43
Q

What was the income per capita of farmer’s

A

44% the national average

44
Q

How much of Germany did Farmers make up

A

1/3 so small income had big impact on spending power

45
Q

What did Stresemann refuse imports of when world food prices increased

A

wheat and grain

46
Q

Yield for farmers remained slow. In 1920s, agricultural production was only —– pre-war levels

A

75%, leading many farmers into voting Nazi- ‘Farmer’s revenge’

47
Q

How much was Germany’s trade deficit?

A

Germany imported more than exported, by 1928 by 2.9 billion marks

48
Q

When was the farmers downturn

A

1926

49
Q

Cartels kept prices high, whereas competition would have…

A

lowered them, better for domestic production

50
Q

By 1929, what happened to mid class wages? What did this lead to?

A

They drew level with industrial wages and over 1/2 mid class employees seeking unemployment benefits not qualify

51
Q

big businesses were v reliant on…

A

govt funds

52
Q

Overall rate of what was slow

A

industrial growth

53
Q

unemployment levels didn’t go past

A

1.3 million

54
Q

what was the period 1924-29 in Germany described as?

A

The Golden Age

55
Q

How was Stresemann key to recovery (4)

A
  • won favour w Allies
  • helped with the Dawes and Young Plans
  • ended hyperinflation via the Rentenmark
  • appt of Schancht
56
Q

What positives were there to the Golden age? (5)

A
  • increased industrial production
  • improved wages
  • reduced unemployment levels
  • regulated working hrs
  • new welfare system
57
Q

How was the ‘Golden Age’ a short-term fix?

A

If short-term credits recalled, parts of Econ would collapse

58
Q

How did not everyone benefit from the Golden Age? (2)

A
  • Agriculture suffered amidst low food prices, as did Mittelstand
  • increased tension between employees and employers(resentment of employers)
59
Q

When was there a recession in some areas

A

1927, economy sick beyond repair?

60
Q

How was the state living beyond its means?

A

Constant budget deficits and increased welfare costs

61
Q

1929 production was at ——levels but still slow growth

A

1913

62
Q

What happened to the support of extremists during 1924-28?

A

Declined. Political calm. Mid-class liberal parties small but still govt instability.

63
Q

Overall, judgement on extent of economic recovery 1924-29

A

Some prosperity and confidence from a superficially improved economy
BUT others were resentful about lost savings and insecure. Recovery fragile as bought on borrowed time and money.

History AS1 (18 decks)

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