Weimar Germany economic recovery

  • Created by: amelia511
  • Created on: 01-05-18 20:09

The Stengths of German economy

  • Heavy industry able to recover quickly and by 1928, production levels had reached those of 1913
  • Foreign bankers particularly attracted by Germany's high-interest rates
  • Lower costs because of increase of cartels
  • Between 1935 and 1929 exports rose by 40%
  • Hourly wage rose every year

Therefore, it can be seen that Germany did its best to get conditions in the ways they were before the war, and it is seen through the improvements that were made.

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Social Welfare

  • Weimar Constitution incorporated basic rights
  • Aimed to address social provision through the creation of a welfare state
  • Increase in progressive taxes, e.g. taxes on capital and increase income tax
  • Over 2 million houses were built
  • Homelessness reduced by 60%
  • Benefits and pensions for widows and the wounded
  • Improvement in health insurance 

As a result, Weimar did its best to accommodate all of the population, by offering incentives.

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Weaknesses in the German Economy

  • Economic growth was unclear- 1926 production declined
  • Unemployment never fell below 1.3 million
  • Unemployed workers averaged 1.9 l=million in 1929
  • World economic conditions did not favour Germany- had to rely on the export of trade, but was hindered by tariffs. Loss of valuable sources which were lost in the Treaty of Versailles.
  • German agriculture- Fall in prices was a strain on farmers and were failing to make a profit.
  • Changing balance of the population- From the 1920s, there were more school leavers because of high pre-war birth rate, meant there was always likely to be an increase in unemployment.
  • Savings and investments discouraged- Savers had lost a great deal of money in Inflation, and less enthusiasm to invest. The German economy was dependent on foreign investment.
  • government finances raised concern- Government spend increasing sums of money and by 1928 public expenditure had reached 26% of GNP.
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'A sick economy?'

The German economy was in a poor state:

  • foreign loans made it liable to suffer.
  • investment too low to encourage growth
  • the cost of the welfare state could be met only by the government taking on increasing debt
  • agriculture has faced serious problems
  • Borchardt- 'an abnormal, in fact, sick economy'
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