The Dawes Plan, 1924
- USA lends money to Germany which is spent on building up German economy
- Germany uses increased tax revenues to pay preparations to France
- France pays back war loans to the USA and imports US goods to help rebuild France
- was an attempt following World War I for the Triple Entente to collect war reparations debt from Germany.
- When after five years the plan proved to be unsuccessful, the Young Plan was adopted in 1929 to replace it.
Summary
USA lent money to Germany, who spent it all on building up their economy. Germany then used their increased taxes to pay reparations to France. With that money, France then paid USA back war loans and imports US goods.
Video
Questions?
What would have happen if the US never lent money to Germany for their economy? What would have been different?