Section 2 - The 'golden age' of the Weimar Republic 1924-28 Flashcards
1
Q
how did the government change in august 1923?
A
- a new coalition led by Gustav Stresemann.
- DVP shared power with the centre party, socialists and the DVP
- Stresemann was chancellor for 103 days
2
Q
what were stresemanns main 3 policies to bring Germany under control?
A
- end of passive resistance
- issuing of a new currency
- balancing the budget
3
Q
how was passive resistance ended?
A
- resistance against the occupation of the Ruhr was called off
- this was unpopular and resulted in the attempted beer hall putsch.
- government stopped paying workers who refused to work for the French
4
Q
what was a new currency issued?
A
- rentenmark
- 1 trillion Deutschmark = 1 Rentenmark
- was supported by a mortgage on all industrial and agricultural land
- august 1924 came the reichmark backed by German gold reserve
5
Q
how was the budget balenced?
A
- cut expenditure and raise taxtes
- 300,000 civil servants lost their job
- well run business survived and did well but unorganised and reckless ones did not
- 6000 businesses went bankrupt in 1924
6
Q
what was the reperations issue?
A
- nov 1923 Stresemann asked the allies reparations committee to investigate how the issue could be resolved
- a committee of financial experts drew up the inter plan to reduce the burden of the reparations resulting in the Dawes plan
7
Q
what was the Dawes plan?
A
- totally reparations fee remained unchanged, annual payments reduced from 1924-29
- loan of 800 million marks from USA would fund investment in economy and simulate economic growth
allies took control of German banks and railways
8
Q
reaction to the Dawes plan
A
- French and Belgium troops withdrew from the Ruhr in 1924-5
- right wing parties such as the DNVP, Nazi Party oppossed the plan
- Stresemann called it ‘no more than an economic armistice’
9
Q
how did the economy recover?
A
-foreign investment in industry
- industrial output grew
- currency was stable, low inflation
- exports increased
- wages for industrial workers increased
10
Q
what was the weakness in the economy?
A
- by 1926, 3 million people out of work
- Imports increased more than exports
- rural informs did not increase
11
Q
what was the young plan?
A
- total bill reduced from 6.6 billion to 1.8 billion
- annual payments increased, repayment period set at 59 years
- allied control over railways and banks were relinquished
- allied forced withdrew from Rhineland by 1930
12
Q
reaction to the young plan
A
- new DNVP leader Hugenberg organised a national campaign against plan giving hitler a major role
- resulted in a referendum for the freedom law, 6 million voted in favour
13
Q
what was the social welfare reform?
A
- 1924, public assistance system was modern used giving basic assistance to the poor
- 1925, state accident insurance system was extended
- 1927, a national unemployment insurance system, was introduced, financed by contributions from employees and workers
14
Q
who were those with rising living standards during this time period?
A
- owners of businesses that prospered during the trade bloom
- workers in trade unions who negotiated an increase in wage
- welfare precipitants who had help preventing them from falling into poverty
- women were able to take advantage of new employment opportunities
15
Q
who were those with declining living standard
A
- people living on fixed incomed
- those who lost their savings I 1923 due to hyper inflation
- farmers and labourers
