ECONOMY 1924-1929

Question 1

WHEN was the Dawes Plan passed?

Answer 1

1924

Question 2

WHAT did the Dawes Plan do?

Answer 2

• Reduced annual reparations to 1,000 million marks which would increase each year at varying levels according to economic performance
• Germany were given a 800 million mark loan by the USA to help stabilise the economy
• NOT a permanent solution

Question 3

WHEN was the Young Plan proposed?

Answer 3

1929

Question 4

WHAT did the Young Plan propose?

Answer 4

• Reduction of total reparations by 20%
• Meant that, in theory, reparations would last until 1988

Question 5

WHY was the Young Plan recalled?

Answer 5

Due to the Wall Street Crash

Question 6

In WHICH years were there significant price drops for grain in Germany and WHY?

Answer 6

1925-6 because of poor weather, global production and tariffs

Question 7

WHAT percentage of 1913 levels was German agricultural output in 1929?

Answer 7

75%

Question 8

WHEN and WHAT were the ‘farmers’ revenge’ riots?

Answer 8

In 1928 there were a series of small scale riots to protest against foreclosures and low market prices

Question 9

WHAT was the consequence of the government making it easier for farmers to borrow money in 1923?

Answer 9

Many became saddled with debt at a time when agricultural prices were falling

Question 10

WHAT were some agricultural policies in Weimar Germany?

Answer 10

• Subsidies for farmers (increased government expenditure)
• Introduced protectionist tariffs on imports, helping German farmers, but hurting consumers

Question 11

WHAT was cartelisation?

Answer 11

When large firms bought up smaller firms to form cartels (groups of companies that agreed on prices and profits). Happened more in Weimar Germany

Question 12

After WHICH year did industrial output begin to grow in Weimar Germany?

Answer 12

1924

Question 13

HOW did workers’ living standards improve during 1924-29?

Answer 13

• Many saw wage rises each year after 1924
• More affordable homes were built

Question 14

HOW did workers’ living standards decrease during 1924-29?

Answer 14

• The eight hour day was ended by employers
• Compulsory arbitration
• In 1928, 250,000 workers were locked out by employers due to wage disputes

Question 15

WHAT was compulsory arbitration?

Answer 15

A new system of settling industrial disputes where an independent figure (arbitrator) decided on a solution when there were wage disputes between workers and employers. Employers thought it was biased in favour of unions

Question 16

WHAT are some economic failures during the years 1924-28?

Answer 16

• Imports were still higher than exports
• Bankruptcies rose
• Unemployment rose
• The economy was too reliant on foreign loans

Question 17

WHAT percentage of the population was unemployed in 1926 (peak)?

Answer 17

10%

Question 18

By 1929, WHAT percentage of German bank deposits were foreign?

Answer 18

18%

Question 19

WHAT was the problem with German banks having a lot of foreign debt?

Answer 19

They could be quickly withdrawn overseas, greatly damaging the German economy