The 'Golden Years' 1924-28

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Pre Golden: What was the crisis of 1923?
Hyper-inflation, social and political unrest.
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Pre Golden: How did hyperinflation come about?
Serious problem of inflation before 1923- war paid for by borrowing and printing more money, and post war reparations dented international confident in mark= imports $rose as did living costs. Passive resistance @ Ruhr= ballooning defecit>printed.
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Pre Golden: Impact of hyperinflation: Winners & Losers...
Winners: GOVT, people owing money (debts worthless)eg businessmen+landowners, adroit speculators- fortunes$$, wealthier:). Losers: temporary-WC (wages insufficient), food&fuel$$$, permanent-saved money (no compensation) eg pensioners,war bonds- MC.
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Pre Golden: Social Unrest
Early 1923 TUs able to negotiate wage increases (allowed them to rise with inflation) however mid1923 prices surged ahead of wages= serious unrest in poorer districts or cities (strikes, hunger riots, looting).
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Pre Golden: Political Unrest
Circumstances in late 1923 also conductive to RW putsch attempt, KPD used to advantage social unrest in Saxony, and Ruhr= nationalism, fears of Comm putsch, abandonment of passive resistance= breakdown of law and order (RW-'govt capitulated to Fr').
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Pre Golden: How did the republic survive 1923?
Survival solely to its enemies' weaknesses, LW extreme lacked popular support as did RW lack widespread support (plus internal disunity ruined 1920 and 1923 putsch attempts).
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How did Stressemann recover the economy?
100 days- called off passive resistance, introduction of new currency (Rentemark) issued strictly in limited quantities (retain value), fended off threats to Republic's survival.
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Stressemann also had FP significance (=domestic) with...
Dawes Plan, 1924; Locarno Pact, 1925 and entry in LofN, 1926; Young Plan, 1929.
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What was the significance of Stressemann's FP?
Opened the way to the return of prosperity at home- rid of hyperinflation and rehabilitated within the international community= G became highly attractive to foreign investors> kick-started ec growth in the later 1920s. But unpopular with anti-rep RW
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Economy: A process of mergers and takeovers saw...
the emergence of vast industrial combines (such as the chemical giant IG Farben) which benefitted economies of scale.
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Economy: What did G exports increase by between 1925-29?
40/50% (as industrial output has increased).
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Economic Growth & Development: 1928 vs 1913 stats
By 1928: production equalled 1913, national income 12% higher than 1913.
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Economic Growth & Development: Certain Sectors of the economy performed particularly well...?
eg. chemicals company IG Farben became the largest manufacturer in Europe.
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Socio-Economic: How were wages effected and what did this result in?
Significant increased in workers' real wages (rose every yr 1924-30) in the later 1920s: standards of living were higher in 1929 than they had been on the eve of war in 1914, more disposable income= reap cultural rewards.
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Socio-Economic: Unemployment
Ran at a relatively low level.
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Economic Growth & Development: Loans
From the international community, particularly the USA, financed the development of infrastructure in G. 1924-30: 25.5bn gold marks loaned.
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Social: Housing conditions improved dramatically because...
local authorities took advantage of cheap loans to embark on massive house-building schemes.
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Political: Increased stability 1924-28
No putsch attempts, no political assassinations, creation of the 'Grand Coalition' in 1928 (led by SPD's Muller, coalition of L,R and centre- commanded a secure majority= over 60% in RS).
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Political: Increased acceptance of democracy
1928 election: 76% people pro-Weimar parties, Support for Nazis low- only 2.6% of vote, Far right coalition failed to get support in their anti-Young Plan referendum.
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Political: Hindenburg
Despite his authoritarian past, President Hindenburg upheld the new constitution and in 1928, chose a SPD Chancellor in spite of his personal hostility to socialism.
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Card 2

Front

Pre Golden: How did hyperinflation come about?

Back

Serious problem of inflation before 1923- war paid for by borrowing and printing more money, and post war reparations dented international confident in mark= imports $rose as did living costs. Passive resistance @ Ruhr= ballooning defecit>printed.

Card 3

Front

Pre Golden: Impact of hyperinflation: Winners & Losers...

Back

Preview of the front of card 3

Card 4

Front

Pre Golden: Social Unrest

Back

Preview of the front of card 4

Card 5

Front

Pre Golden: Political Unrest

Back

Preview of the front of card 5
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