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AS Level History - Economic development and policies in Germany (1)
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- 1What was the period of rising inflation in Germany?1918 to 1923.
- 2What were the 4 major crises during this period?-Social welfare
-Debt and reparations
-The Ruhr
-Hyperinflation - 3--Social welfare----Social welfare--
- 4For social welfare, what did the government do after the war?-Set up retraining schemes for those who had fought in the war.
-Provided loans to help those leaving the army until they could find work.
-Set up pension payments for the wounded, widows and orphans. - 5What were set up to oversee care in the Länder?National committees.
- 6By 1920, how many disabled veterans and survivors not classed as disabled were there?Disabled veterans - 1,537,000
Survivors not classed as disabled - 1,945.000 - 7How, specifically, did the government look after these people?-Lump sum payments.
-Pensions. - 8By 1924, how many disabled veterans, war widows, children and parents of dead soldiers were there?-Disabled veterans: 768,000
-War widows: 420,000
-Their children: 1,020,000
-Parents of dead soldiers: 190,000 - 9What percentage of the population were receiving federal welfare payments?10%.
- 10How did the government keep up with this demand?Both federal and regional level governments went into debt.
- 11--Debt and reparations----Debt and reparations--
- 12What happened to the debt of Germany during the war?-Government had borrowed heavily.
-1918, owed 150 billion marks (3 times more than it owed in 1914). - 13What other policy plunged the Weimar Republic into even more debt?Reparations laid down in the Treaty of Versailles.
- 14What did the Government do as a result of this policy?Tried to meet the payments, and carried on borrowing and printing money.
- 15How did Germany pay for these reparations until 1924?They paid them in raw materials such as coal, wood and railway carriages.
- 16--The Ruhr----The Ruhr--
- 17What happened in January 1923?Germany failed to deliver its reparation payments in full.
- 18What happened in 1921, when the Allies could see that Germany was falling behind?The London Ultimatum of the Allies said that if Germany failed to repay its reparations, the Ruhr would be invaded.
- 19Why would the allies invade the Ruhr?Due to the raw materials that it had, which were vital for the German economy.
- 20By who and when was the Ruhr invaded?January 1923, by French and Belgian troops.
- 21What were the 3 responses by the government when the Ruhr was invaded?-Stopped all reparation payments to France (but not to other Allies).
-Told all German officials NOT to accept orders from any non-Germans.
-Urged the workers in the Ruhr to partaking in passive resistance (working slowly, strikes and sabotage). - 22What did the French do in response?-Cut the Ruhr off from the rest of Germany by setting up a border patrolled with armed guards.
-Took control of the postal and telegraph services.
-Tried to solve problems of passive resistance by using force or bringing in their own workers. - 23Who benefited from this occupation?Neither France nor Germany.
- 24When and by who were the passive resistance strikes called off?-September 1923.
-New coalition government led by Stresemann called off the strikes and started to negotiate with the French. - 25--Hyperinflation----Hyperinflation--
- 26What caused inflation to turn into hyperinflation?The crisis of the Ruhr.
- 27As hyperinflation took its toll, how did the attitude of the public change and what did they do?-People lost faith in the currency entirely.
-People became increasingly reliant on barter and the black market. - 28What happened to the black market during this period?-More and more people bought from it.
-In the end, the prices rose so much that only the rich could afford to buy on it. - 29What did towns, regions and businesses begin to do in response to hyperinflation?Issue their own Notgeld or 'emergency money'.
- 30What happened to government employment during this period?750,000 federal and regional government employees lost their jobs.
- 31Who suffered due to this crisis?-Those on fixed payments, including social welfare, suffered as these payments lost their value.
-Poor worst hit because they had nothing to fall back on.
-Well-off families also suffered. - 32--Change in government----Change in government--
- 33When did the government collapse?August 1923
- 34Who entered government after this collapse and how did they survive?-Gustav Stresemann of the DVP.
-Emergency Decree of 10 August gave the government powers that included postponing Reichstag meetings and governing by decree if necessary. - 35What was the most significant policy decision of this new coalition?Using the emergency decree to not allow the Reichstag to do the decision making.
- 36What advantages did this decree have for the government?They could act more rapidly than any other coalition in the past because it didn't have to negotiate with different members of the coalition.
- 37--Policies for recovery, 1924-28----Policies for recovery, 1924-28--
- 38Who was responsible for the political stabilisation through this period, and how did he do it?-Gustav Stresemann, Foreign Minister.
-Urged compromise on political ideals to work together to solve Germany's problems. - 39--Making money work----Making money work--
- 40What was Stresemann's first significant policy?The withdrawal of the almost worthless mark to regain control over money.
- 41What was the new currency called and when was it put into place?-Rentenmark.
-October 1923. - 42What happened to people who had savings, and what was banned?-They objected to the Rentenmark because it had such a low value compared to the original gold mark.
-'Emergency money' was banned. - 43Who was made president of the Reichsbank in December 1923?Hjalmar Schacht.
- 44What was the effect of the new currency?-People regained faith in the currency, at home and abroad.
-Germans changed their foreign currency and 'emergency money' for the Rentenmark.
-Prices settled. - 45How else did the government stabilise the currency?By issuing emergency decrees to control rents, wages and prices.
- 46What happened in 1924?Schacht oversaw the change from the Rentenmark, to the official Reichsmark (RM).
- 47--Foreign policy and the economy----Foreign policy and the economy--
- 48What six things did Gustav Stresemann do to improve the stability of Germany?-Introduction of the Rentenmark.
-Dawes plan.
-Young plan.
-Germany's entry into the League of Nations.
-Locarno Treaties.
-End of Passive Resistance. - 49What was the Dawes Plan?-Negotiated in 1924.
-Reorganized reparations to the USA.
-Brought foreign investment to Germany. - 50What was the Young plan?-Plan introduced in 1929.
-Set timescale and reduced reparations.
-France agreed to leave Rhineland early. - 51What was the significance of Germany entering into the League of Nations (1926)?-Germany recognized as a great power again.
-Other countries were happier to lend Germany money and make trade agreements. - 52What was the main issue with the policies Stresemann introduced?The economic recovery, although providing stability, was all based on loans, mainly from the USA.
- 53--Recovery of business----Recovery of business--
- 54What happened to small businesses in the early 1920's?-Many collapsed.
-In 1924, there were more bankruptcies than in the previous 5 years combined. - 55What did big businesses do due to the unstable economy and why?They set up cartels whose fixed prices helped to stabilise the economy.
- 56What was good and bad about cartels?-Provided stability because they stopped prices moving as much.
-Cartels could fix higher prices than they would have charged if they had operated as separate, competing businesses. - 57What did the state do in order to try to control disputes from workers against their employers?Ebert set up state arbitration.
- 58What was state arbitration?-The government was to settle wages and any other matter under dispute.
- 59How many cases between 1924 and 1929 were taken to arbitration boards?60,648 cases.
- 60What action was taken in 1928 by industrialists?Industrialists in the Ruhr refused to accept a compromise ruling and locked their workers out of the factories.
- 61--Trade recovery----Trade recovery--
- 62Why was it difficult for Germany to establish trade links?Due to bad feelings after the war with Britain and France.
- 63What was the new US policy after WW1 and what did this mean?Isolationism which meant that the US wanted little interaction with other countries, politically and economically.
- 64What was introduced in countries worldwide due to a shift in trade and what were they?Tariffs which were taxes on foreign goods that made them more expensive and so encouraged people to buy goods made in their own country.
- 65What did tariffs mean for Germany?German public faced heavier tariffs initially due to its part in WW1 as part of the reaction from other countries.
- 66What were the levels of exports in 1926 and 1929 respectively?1926 - 10 billion marks (levels of 1913).
1929 - 34% higher than in 1913. - 67--Agriculture----Agriculture--
- 68What percentage of workers were in the agricultural industry?Between a third and a quarter so it was a very significant employer.
- 69What sort of farms managed better and why?-Bigger farms.
-They could invest in new machinery and farming techniques. - 70What was the major issue with smaller farm owners?-They were heavily in debt.
-Could not afford to pay the interest on their loans or even, in some cases, their taxes. - 71What was the issue with big landowners?They could have political influence that enabled them to block some farming reforms where they did not work in their interest.
- 72What else did the influence of wealthy landowners allow them to do?Press for higher grain subsidies (government pay-outs) that benefited those with bigger farms.
- 73--Government spending----Government spending--
- 74Give 3 ways in which the government spent heavily during the reconstruction of the country.-Subsidised grain production.
-Subsidised industry.
-Spent heavily on social welfare (providing housing and benefits for the poorest). - 75How did the government fund this?Through borrowing and taxation.
- 76What was the impact of the public on post-war well-being?-They weren't as well off as they had been in 1913.
-They pad less tax.
-Resented the idea of tax rises. - 77What were the percentages for the lowest tax band in 1913, 1926 and 1928 respectively?1913 - 47%
1926 - 62%
1928 - 55% - 78What does this mean?Government had to borrow money it might otherwise have made by raising taxes.
- 79How else was the economy kept afloat?Through government support.
- 80What was another problem with the economy?Industrial expansion and production was damaged by constant disputes between businesses and workers, which affected productivity and drove wages up until 1930.
- 81Why did the rise in wages flatline in 1930?The depression led to such high unemployment that people were willing to work for any wage at all.
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- AS - Level (Economic development and policies ) History - Germany Fichas sobre AS Level History - Economic development and policies in Germany (1), creado por Ben C el 14/03/2016.
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