Podcast
Questions and Answers
What percentage of voter turnout was achieved in the referendum for 'the Law Against the Enslavement of the German People'?
What percentage of voter turnout was achieved in the referendum for 'the Law Against the Enslavement of the German People'?
The National Opposition managed to get 5.5 million signatures in favor of the Freedom Law.
The National Opposition managed to get 5.5 million signatures in favor of the Freedom Law.
False (B)
What was one major economic benefit observed between 1924-1931 related to housing?
What was one major economic benefit observed between 1924-1931 related to housing?
2 million homes were built, leading to a 60% decrease in homelessness.
The high-end tax bracket increased from 4% to ________%.
The high-end tax bracket increased from 4% to ________%.
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Match the following economic outcomes with their corresponding statistics:
Match the following economic outcomes with their corresponding statistics:
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What was one of the major reasons for the economic crisis in Germany during this period?
What was one of the major reasons for the economic crisis in Germany during this period?
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Gustav Stresemann was elected Chancellor for a term longer than six months.
Gustav Stresemann was elected Chancellor for a term longer than six months.
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What is the name of the new currency introduced by Stresemann to stabilize the German economy?
What is the name of the new currency introduced by Stresemann to stabilize the German economy?
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Stresemann called off __________ to reduce inflation and stabilize the economy.
Stresemann called off __________ to reduce inflation and stabilize the economy.
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Match the following individuals with their roles during the German economic crisis:
Match the following individuals with their roles during the German economic crisis:
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What was the total reparations sum set by the Dawes Plan?
What was the total reparations sum set by the Dawes Plan?
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The Young Plan increased the total sum of reparations.
The Young Plan increased the total sum of reparations.
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Who was the U.S. banker involved in the Dawes Plan?
Who was the U.S. banker involved in the Dawes Plan?
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Germany was promised to receive ________ million RM in loans from the United States under the Dawes Plan.
Germany was promised to receive ________ million RM in loans from the United States under the Dawes Plan.
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Match the following events to their corresponding details:
Match the following events to their corresponding details:
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What was a key impact of the Dawes Plan on German society?
What was a key impact of the Dawes Plan on German society?
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The nationalist parties supported the Young Plan.
The nationalist parties supported the Young Plan.
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In what year was the Young Plan formulated?
In what year was the Young Plan formulated?
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Study Notes
The German Economy (1923-1930)
- Germany's economy was severely damaged by hyperinflation, national debt, and the occupation of the Ruhr.
- Gustav Stresemann became Chancellor in August 1923, aiming to resolve the economic crisis.
- Stresemann ended passive resistance in 1923, a move that cost the government but lessened friction with France.
- He introduced the Rentenmark in December 1923 as a stable currency. This currency was a temporary fix, tied to German assets rather than gold, and was crucial in controlling inflation. The limit on currency denomination kept the currency in check.
- Government spending was reduced drastically. Over 700,000 employees were laid off.
Dawes Plan (April 1924)
- The Dawes Plan was a US-led plan developed to aid the German recovery.
- This plan included loans from the US to Germany
- Reparations were reduced over time ( initially 800 million Reichsmarks was given as a start up loan in the first 5 years and increased further in subsequent years dependant on Germany's economic performance.
- Allied control was maintained over German railways, the Reichsbank, and customs.
Impact and Aftermath of the Dawes Plan
- The Dawes Plan brought some stability to Germany
- There was improved industrial production and living standards.
- German participation in international affairs increased.
- There was opposition to the plan, primarily from nationalist groups who viewed it as a continuation of the Treaty of Versailles' conditions.
Young Plan (1929)
- The Young Plan further reduced reparations and simplified payment schedules.
- Allied oversight was reduced.
- This attracted opposition from nationalist parties.
- There was a referendum over this plan which was narrowly voted down.
Economic Weaknesses in the 1920s
- The stability was uneven. Production declined in 1926
- Unemployment remained high, often exceeding a million unemployed.
- Farmers struggled with lower prices and competition from other countries.
- Inflation was no longer the immediate worry but public spending was causing problems, with large parts of the German budget relying on debt financing.
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Description
Explore the critical period of the German economy from 1923 to 1930, focusing on hyperinflation, the introduction of the Rentenmark, and the Dawes Plan. This quiz highlights key figures like Gustav Stresemann and the measures taken to stabilize the economy after World War I. Test your knowledge on this significant chapter of economic history.
