The Dawes plan 1924
USA lends money to germany which is spent on building up the german economy
germany uses increased tax revenues to pay reparations to France
France pays back war loans to the USA and imports US goods to held rebuild force.
This is a Cycle but is not pointless and actually is aiding the individuals countries.
germany uses increased tax revenues to pay reparations to France
France pays back war loans to the USA and imports US goods to held rebuild force.
This is a Cycle but is not pointless and actually is aiding the individuals countries.
what did this cycle accomplish between France,Germany and USA?
The Dawes Plan of 1924 was formulated to take Weimar Germany out ofhyperinflation and to return Weimar’s economy to some form of stability. The Dawes Plan got its name as the man who headed the committee was an American called Charles Dawes. The Treaty of Versailles had imposed huge reparation payments on Weimar Germany to pay for the damage caused by World War One. It soon became clear that Weimar Germany was simply incapable of paying out the instalments required by Versailles. This ended in 1923 with French and Belgian troops occupying the Ruhr – Germany’s most productive industrial area. The workers there went on strike which simply exacerbated Weimar Germany’s economic standing. By 1924, the country was in dire financial straits