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A political truce was agreed between all political parties and the laws for necessary
loans and finance were passed unanimously
As the Kaiser said to the Reichstag, `I know no parties any more, only Germans'
Even the Social Democrats promised to support a defensive war
Government successfully portrayed the war as defensive
Many Social Democrats were genuinely patriotic
Failure to win by Christmas did much to undermine spirit, but it wasn't until the
second half of the war that people started to turn against it, because of propaganda…read more

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German banks and export industries were badly disrupted by the long war and
Germany's capacity to produce enough food to feed the population was limited
The ability to import raw materials was severely curtailed, and things like oil, rubber
and nitrates were vital for war production…read more

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Walther Rathenau created the KRA within the War Ministry
It oversaw a range of companies whose job it was to acquire, store and distribute
the most vital raw materials needed for the war effort
Established a chemicals section and backed the construction of new plants to
produce nitrates
Within 6 months most essential supplies were provided…read more

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State intervention
War Ministry decided who should be conscripted and exempted
Need to prevent industrial unrest
Price controls
Creation of local War Boards made of management and labour representatives
Worked fairly well in short term, but the budget and food provisions were problems
too big to maintain fighting 1915-16 and they caused unrest…read more

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Massive deficit in peace time
Sale of war bonds only real attempt to narrow the gap between income and
Idea of raising taxes, which would burden the rich most, was rejected on political
Put to one side until the end of the war, when they reckoned they could demand
compensation from defeated countries
16% of cost was met by taxation, the rest from funding like war bonds and printing
more money
Printing more money started inflation in Germany and reduced the value of the mark
internationally…read more

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