1924+Dawes+Plan

The 1924 Dawes Plan was an **attempt** in 1924, following after World War I for the Triple Entente (France, Britain, Russia) to collect war reparation debts from Germany. The main points bought up from the Dawes plan was to: The plan was accepted by Germany and was taken into effect on September 1924. Although German businesses were able to rebound and reparations seemed to be produced annually, It became obvious that Germany could not sustain the enormous amount of reparations that were set deliberately at a crushing level.
 * 1) The Ruhr area was to be evacuated by Allied Occupation Troops (Invasion of Ruhr in 1923 by French and Belgium was a result of Germany's failure to produce reparations)
 * 2) Reparation marks would begin at "1 billion marks" the first year and "increase annually to 2 and a half billion marks annually next five years"
 * 3) The Reischbank would be reorganized under Allied supervision
 * 4) Sources of reparation money would include transportation and custom taxes

**HOW THE BAD ECONOMIC CONDITIONS ALLOWED HITLER TO RISE TO POWER** The1924 Dawes Plan provided short term economic benefits to the German economy by softening the burdens of war reparations, stabilizing the currency, and bringing increased foreign investments and loans into the Germany economy. However, it made the German economy increasingly independent on foreign markets and economies. This caused Germany to sink into a more severe condition of debt as the U.S economy crashed with the Great Depression in 1929. This hurt Germany's crippled economy even more as Germany was subject to debt repayments for loans of American dollars. The Dawes Plan further crippled Germany's economy, allowing the perfect condition for extremists such as Hitler to rise to power. The leg of the stool the Dawes Plan helped increase were the people that would benefit from the Nazis proposed methods for improving the economy of the country after taking it out of the rule of the Weimar.