The Dawes Plan Was A Significant Turning Point For Germany

1576 Words7 Pages
The Dawes Plan was an attempt from America in 1924 to collect reparations from Germany they couldn’t pay unaided. In order to increase chances of reparations being paid, Germany would be paid 800 million marks from the US and the Ruhr area was to be evacuated by allied troops among other main points issued. The Dawes Plan was undoubtedly to some extent a turning point for Germany, as it did dramatically improve Germany’s economy, politics and culture. However, some might say it led Germany to even worse conditions by depending too much on the US. Although the Dawes Plan was not a a significant turning point for Germany, in the short term it really upgraded everything in Weimar Germany. On the one hand, the Dawes Plan was a significant turning point because it improved Germany’s economic situation hugely. It is evident that the Dawes Plan improved Germany’s debt because from 1921-24 the GDP in debt decreased by 150% from the original 305%. This shows the Dawes Plan was a significant turning point because it created an instant effect on Germany’s economy as soon as it was put into action in 1924. Loans financed by the US were distributed to businesses as well as other establishments which led to a big pick up in all businesses. In 1928 Gilbert Parker commented on the pick up of German businesses: ‘..business conditions appear to have righted themselves on a relatively high level of activity’ showing that by this time, Germany’s industries and workforce were at a similar level
Open Document