Question

Did the Dawes Plan solve the problem of war debt? Why or why not?

Answer 1

The Dawes plan was not intended to directly reduce war debt but its goal was to reduce the burden of it on Germany. The Dawes plan was primarily made up of loans so that Germany could rebuild its economy and direct other financial avenues towards reparations.

Answer 2

This depends on your point of view, because on the one hand the Dawes plan achieves a considerable recovery of the German economy, the gradual reactivation of its industrial park, the financial control and the replacement of the workforce, which has a positive effect on the economy German currency, which shows signs of recovery until 1929 and would solve the debts of the war, but when the crisis started with the Crash of the New York Stock Exchange hits the world economy in full, it puts down the German restructuring effort, which makes it difficult the discharge of debt.