Complete notes on Germany's economic developments between 1924-28 from the AQA Alevel History, Democracy & Nazism course from an A* student!!!
This includes information on;
-stabilisation of the currency
-the Dawes Plan
-the Young Plan
-extent of economic recovery.
As part of my ALevel stu...
Weaknesses - This was Abroad = foreign countries are more likely to start
a highly risky move making trade deals w/ G again if they have a good
though and very economy - builds up the economy further
Strengths - rather than no longer refusing unpopular by many as it
to comply with their wants, it symbolised symbolised that G was In November 1923, Strengths - inflation was on the decline!! Economy was
that they would repay their repayments giving in to the wants of Stresemann's gov majorly boosted, not only did this have a significant impact at
and led to the French leaving the Ruhr. the French and more so was responsible home (as a result of a boisterous economy, other social and
Significance of this first step = huge!! This the ToV, something
Reliance on foreign loans for creating a new political issues slowing down/decreasing) but also helped
is a crucial part if G which can help to everyone hated
made G vulnerable to shifts currency - the with situations abroad
rebuild up the economy
in the world economic crisis rentenmark
This is because it Since g did not have
reduced gov 1 rentenmark sufficient gold
Farmers suffered from Improvement in welfare state because
expenditure on paying = 1 trillion reserves to back the Weaknesses - hasn't sorted out the impact
low prices & high debts of this; new housing being built, and
these workers who marks new currency, it was hyperinflation had on people eg the middle class
- many farmers forced other schemes. Would have positively
were on strike - supported by a do not get their savings back
to give up farms impacted large proportion of society
refusing to work for mortgage on all
(WC is biggest group in society)
the French. industrial and
agricultural land Happened under the
Investment in new machinery
Mittlestand gained direction of Hjalmer Schacht
and factories was falling by 1929
very little in this Inflation was low and Stresemann called off the end
golden age. currency was stable of passive resistance in Sep
Issuing of a new currency Basically just the fact that gov expenditure was being cut
Economy shrank Bankrupted by 1923, which was an important & taxes were being raised for businesses AND individuals
in 1928-29 hyperinflation of factor in beginning to sort out
1923, they did not Industrial output
grew after 1924 BUT this economic chaos
Industrial growth rates benefit fully from Salaries of gov employees were
the improved did not reach 1913
were unsteady Balancing the budget cut, 300,000 civil servants lost
economic climate levels until 1929 End of passive their jobs & taxes raised
Economic resistance
recovery Stabilisation of
Unemployment was the currency Well managed companies began tp
a problem, by 1926,
The extent of the Exports Essentially affecting the whole
Economic weakness prosper but those who relied on
3 million people economic recovery increased population - begins to decline the
debts went bankrupt.
were out of work debt quite drastically
By 1925, G seemed more stable and prosperous - combination of new currency,
Dawes Plan, balancing the budget etc helped to improve G's situation Economic developments in 1924 - 28 The Increase in number of
As the debt began to decline,
enormously however the boom should not be overly exaggerated Dawes companies that went
Due to- The Dawes plan led to confidence was restored
Plan bankrupt - 293 in
the Young Plan
1923 to 6000 by 1924
Companies reducing Fierce opposition from The Young Plan 1929 This is HUGE!!!
workforce to save nationalist parties one the right. Long term stabilisation of G's Accepted
People Something that G has
economy would have to focus on by both G Yes, that doesn't lead people to be
seeking Leader of the DNVP, organised not seen for the last
Public the reparations issue as well as the and allies socially happy, however it means that
work Mining a national campaign against the DECADE!! (Kaiser
The dawes plan was it is better for the economy since it
companies in spending Plan & gave Hitler a leading role domestic - yes domestic ways in July created a large
only ever a temporary makes people not so reliant on loans
particular cuts could help but it would still have no 1924 growing debt from
solution so arranged for
reduced their chance at setting up with the beginning of war)
this meeting 5 years
forces requirements of the ToV
Led to the creation of the freedom law - later where a committee,
which required the gov to reject the war shared by American In Nov 1923, Stresemann asked the reparations
Stresemann only came to power
guilt clause to a referendum Owen Young, met in Opposition attacked it committee to set up a group of financial experts
Although this was in the summer - already making
Paris in 1929 to discuss because they felt G should who could advise G on how to actually pay back
rejected in effective and essential moves
the final plan for defy the ToV altogether their reperations
Reichstag, 13% of that would help get G out of its
reparations crisis. Only in power for 100 days
the electorate signed Also provided
the petition which Hitler with a Annual repayments A committee was set up, chaired by American but making lots of good
showed the level of breakthrough as increased but the Debate in the Reichstag over whether banker Charles Dawes and submitted decisions! - arguably better ones
Foreign control over
support for RW a national repayment period was to accept this or not - Stresemann recommendations on how they were going to than previous chancellors
reparations was given up,
nationalists political figure increased until 1988 thought G would be 'dancing on top do this. Although the plan remained set on the
and the responsibility for
of a volcano' - dangerous risk, relying overall sum being £6.6 billion, it made
the repayments was
so heavily on one country payments more manageable. This included-
placed solely on the
Provides the Total bill was German Govt
alternative party... reduced from £6. 6
billion to £1.8 billion Benefits = allies accepted that G's problems of G should receive a large loan of 800 million marks
some could argue repayments were real. Lead to the French per year from the US, to help get the plan started
this 13% was the eg. Allied control over
leaving the Ruhr in 1924-5 and to allow for heavy investment in G infrastructure
turning point for H banks and railways
grow to power were given up & allied Annual amount paid each year by G
occupation forces Bought about reparation trust to the
allies - would bring about long term G started to believe should be reduced to 1,000 million in
withdrew their troops that their country was the first 5 years. Considerably less than
from the Rhineland open trade discussions
its own master again what had been expected before
We can see that these are both much better plans than just printing more New machinery, houses, factories and
and more money in the hope that this would be enough for the allies and this subsequently jobs could be provided and this in
turn would improve the economy
is much more of an effective & reasonable idea. It is only with hindsight that
these aren't the best solutions (relying on America so heavily) however, at
the time, there's not much they could have done differently This certainly
- already tried other solutions which proved as failures benefitted the
WHOLE of society !!
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