germany- weimar's golden years- german economic stability
- Created by: evecrowley17
- Created on: 16-08-18 13:43
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- German economic recovery (Weimar's golden years 1924-9)
- performance
- strengths
- increased production (1928 levels same as 1913 due to US foreign investment and more efficient methods)
- lowering costs (due to cartels- coalition of businesses to control market- better purchasing power)
- increased exports (40%)
- wage rises (rose every year 1924-30)
- social welfare (e.g. progressive taxes, working conditions + pensions, health care)
- local amenities, 2+m houses built, homelessness down 60% in decade
- weaknesses
- uneven growth (1926 declined + imports outweighed exports)
- agriculture decline (income pp 44% below average, grain prod. 3/4 of 1913)
- unemployment never below 1.3m (1.9m 1929 before WSC)
- strengths
- fundamental economic problems
- discouraged saving and investments (lost savings 1924, relied on foreign investors interested in high interest rates- highly dependent)
- worrying gov finances (welfare cost 26% GNP, 1925- debt)
- revenue didn't match expenditure, serious financial implications for econ
- changing balance of pop. (high pre-war b.r. meant not enough jobs so unemploy. increase)
- poor world econ conditions (decline in agri. prices, hindered by tariffs, lost resources in ToV territories)
- 1/3 farmers, couldn't profit after price fall, overall fall in demand
- a sick economy?
- problems disguised by foreign investment and devel. of welfare system
- foreign loans made GR liable
- investment too low to encourage growth
- sectors started to slow by 1927
- faced serious econ difficulties heading for major econ downturn
- after hyperinflation 1922-3 Rentenmark intro. + Dawes Plan
- performance
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