Results of The Dawes Plan
The Dawes Plan provided short-term economic benefits to the German economy and softened the burdens of war reparations. By stabilizing the currency, it brought increased foreign investments and loans to the German market. But, it made the German economy dependent on foreign markets and economies. As the U.S. economy developed problems under the Great Depression, Germany and other countries involved economically with it also suffered. The Allies owed the US debt repayments for loans.
After World War I, this cycle of money from U.S. loans to Germany, which made reparations to other European nations, who paid off their debts to the United States, locked the western world's economy into that of the U.S.
Dawes shared the Nobel Peace Prize in 1925, in recognition of his work on the Plan.
Read more about this topic: Dawes Plan
Famous quotes containing the words results of the, results of, results and/or plan:
“It is perhaps the principal admirableness of the Gothic schools of architecture, that they receive the results of the labour of inferior minds; and out of fragments full of imperfection ... raise up a stately and unaccusable whole.”
—John Ruskin (1819–1900)
“For every life and every act
Consequence of good and evil can be shown
And as in time results of many deeds are blended
So good and evil in the end become confounded.”
—T.S. (Thomas Stearns)
“Silence is to all creatures thus attacked the only means of salvation; it fatigues the Cossack charges of the envious, the enemy’s savage ruses; it results in a cruising and complete victory.”
—Honoré De Balzac (1799–1850)
“Architect. One who drafts a plan of your house, and plans a draft of your money.”
—Ambrose Bierce (1842–1914)