Economic growth 1924-1929

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  • Economic growth. 1924-1928
    • Unsteady industrial growth rates was lacking compared to other nations. economic levels in 1929 were the sames as 1913.
      • The Dawes plan made reparations more manageable. The 800 million mark loan was used on infrastructure and industry.
        • By 1929 the investment had dropped suggesting that the loan had ran out and the industry was not good enough to support and invest in its self. Stresemann said that Germany were 'dancing on the edge of a volcano' as if the loan was called in the economy wasn't strong enough to support its self and would cripple.
    • Inflation was extremely low and wages wee increasing. Industrial workers often matched or exceeded those of professional jobs.
      • Only industrial workers benefited from wage increases as the method of arbitration only applied in industrial factories. white collar and mittlestand didn't see wage increase due to lack of representation as there were limited trade unions
        • unemployment was a major problem. 1 million unemployment in 1925 and over 3 million in 1926. companies such as coal and steel had to reduce the numbers of workers as output did not justify the number of workers.
    • The government attempted to improve the Germans lives  by firms receiving state subsidies. Short term loans were spent on building schools and other public work.
      • This improved political opposition as people were happy but  this damaged the economic as there was more money going out than in into the economy.
  • was growth
    • wasn't growth

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