Government economic policies had a mainly positive effect on the German economy in the period 1871-1990. How far do you agree with this statement Flashcards
(90 cards)
When did Bismarck introduce tariffs?
1879
What did the Reichstag pass in order for Bismarck to introduce tariffs?
The protective tariff law 1879
Who backed the 1879 Protective Tariff Law?
The two conservative parties and the centre party
How was the Protective Tariff law a political tool for Bismarck?
He wanted to use it to weaken the national liberals and strengthens his now preferred german conservatives
How did Bismarck make the Protective Tariff law a matter of patriotism?
He said that supporting it was a patriotic duty because it supported Germany against foreign competition, and so those who backed free trade were traitors to Germany
Who backed free trade?
National Liberals
What was the impact of the Protective Tariff Law for Bismarck’s voter base which suggests that it did have a good impact on the German economy?
Many National Liberal Voters were peasant farmers switched to the Bismarck-backed Conservative party.
How did those in heavy industry respond to the 1879 tariffs?
They were grateful for the tariffs however they were disappointed that they were higher on agriculture than they were on iron
When did Wilhelm II enter power?
1888
what did Wilhelm II want to resurrect in order to promote growth and reinforce Germany’s world status?
Navy
Why did the german middle and academic classes support the resurrection of the navy?
because of the economic benefits that it would lead to
What suggests that government policy had a negative impact in the early stages?
By 1873, the German economy had collapsed because it had expanded too quickly with too many businesses setting up with unsustainable business strategies
Inspire of the 1873 collapse, what did the National Liberals maintain?
That free trade was the best way to maintain Germany’s position
How were the protectionist policies perhaps not beneficial in the long term?
the lack of cheap russian imports for grain meant that the price of bread went up
How were the protectionist policies beneficial in the short term?
boosted the price of german agricultural produce
Which two people did what in 1924 in Weimar?
Chancellor Stresemann with help from Schact introduced the interim currency of the Rentenmark which stabilised the economy
What had happened in 1927 which suggests that government policy and a positive impact?
By 1927 industrial production had reached pre-WW1 levels
Between which two dates did GDP grow significantly under Weimar?
1825-1829
When was the Dawes plan
1824
What is the downside of the 1824 Dawes plan?
The Dawes plan, however, was only a positive decision in the short term and in the longer term created a much more fragile economy than would otherwise have been created. Germany suffered far worse than did their neighbours of France or Italy because of the extent to which they relied on Wall Street Investment.
When was hyperinflation?
1923
How much did a loaf of bread cost due to hyperinflation?
DM9 million
Why was there hyperinflation due to government policies?
government was unwilling to rationalise the economy and tried to pay for reparations by printing money rather than raising taxes
What is the one word that sums up the impact of government policies not he economy during the Kaiserreich?
varied