The Dawes Plan & The Young Plan
THE DAWES PLAN:
THE YOUNG PLAN:
- America was to lend Germany money
- Germans use this money to make work projects
- They get income tax and use it to pay reparations to France
- France pays back war loans to USA (from WWI) and imports US goods to help rebuild France
- USA gets all the money back from their investment
- (Weren't being isolationists)
- Beneficial to them to have them as trade partners
THE YOUNG PLAN:
- 5 years after Dawes Plan
- Owen Young (American banker) looks at reparations payments and realizes that Germans wont be able to pay it off and it will anger them
- Owen Young suggests to lower German war reparations by 75% and to pay it over a 75 year period on a scaled model (ended in 2004)
- Germans still found this to be unfair (Hitler) as they felt they shouldn't have to pay any reparations
- (Americans aren't staying out of world affairs)