policies for recovery, 1924-28 Flashcards
what was Stresemann Gustav’s first significant policy?
Stresemann had withdrawn the worthless Mark and replaced it with the Rentenmark in October 1923.
what happened when the Rentenmark was introduced by Stresemann?
the currency change had the effect of restoring faith in the German currency, both home and abroad. the Germans changed their hoarded foreign currency and emergency money for the Rentenmark and prices were settled.
what replaced the Rentenmark in august 1924?
Schacht later oversaw the change to the Reichsmark (RM).
how did the Dawes plan and the Young plan help Germany?
the Dawes and Young plan made the reparations more manageable and provided loans to rebuild the economy.
how were small businesses affected by the poor economy?
many small businesses collapsed, in 1924 there were more bankruptcies than in the previous five years altogether.
what did big businesses form and what effect did it have?
big businesses were able to ride out economic problems, and they began to form cartels whose fixed prices helped to stabilize the economy.
what policies were businesses bringing in that caused unrest among workers?
there were big disputes between owners and workers, as workers wanted better conditions and owners tried to cut wages and extend the working hours.
what was the result of the disputes between workers and owners?
lockouts and strikes were common.
how was Germany affected in foreign trade, due to its part in the war?
many countries introduced tariffs of foreign goods, and Germany suffered from heavier tariffs initially as part of the reaction many countries had due to Germany’s part in the war.
how did Stresemann help recover Germany’s trade?
Germany was producing steel and chemicals that other countries needed and with Germany’s admission into the League of Nations and other international agreements set up by Stresemann, German exports were back to their 1913 level of 10 billion Marks by 1926.
how big of an influence did wealthy landowners have on agriculture in Germany?
big landowners had political influence that enabled them to block farming reforms where they did not work in their interest. the influence of the wealthy landowners also allowed them to press for high grain subsidies that benefitted most of those with big farms?
what was the 1918 Reich Settlement Law?
this Law made landowners sell land to the Government to be redistributed among their poorest tenants.
how was Government spending a problem for Germany?
the new economy was built on foreign loans, borrowing heavily and the government also spent heavily. it subsidized grain production, subsidized industry and spent heavily on social welfare.
why was industrial expansion slow?
another problem was that industrial expansion and production was damaged due to the constant disputes between businesses and workers, which affected productivity and drove wages up until 1930
