Weimar Germany: Economic developments and polcies 1918-33

Economic developments and policies

1918-33

Social Welfare:

• After the war, the government set up retraining schemes for those who fought in the war, provided loans until soldiers could find work.
• Set up pension payments for the wounded, widows and orphans.
• Weimar government was liberal so made efforts to make adequate provisions, with natural committees to oversee care in the Lander.
• Both federal government and Lander provided layer of support.
• Variety of social welfare programmes for different groups.
• 1920 - 1,537,000 diabled veterans, 1,945,000 survivors.
• Government looked after them with a mixture of lump sum payments and pensions.
• 1924 - government supporting 768,000 soldiers. 420,000 war widows with 1,020,000 children and 190,000 parents of dead soldiers.
• 10% of the population were receiving federal welfare from the government and many more were regional poor relief.
• Payments had to be paid by the government that had to go into debt to make them.

Debt and reparations:

• The government borrowed heavily during the war; by 1918 it owed about 150 million marks.
• The policy of reparations laid down in the Treaty of Verasailles put the government into a deeper debt.
• First the government tired to meet the payments and carried on brorrowing and printing money.
• If the government changed the economic policy it would be unable to meet these payments.
• From 1921 - Germany was negotiating with the Allies as to how much they should pay and when the payments can be made.
• The Allies, especially France, felt Germany was purposely trying to avoid their payments.
• They argued that the economt had problems but so did other European countries.
• Until 1924 - reparations were paid in kind…