Hammond History-ESSAY,Weimar Economic Problems(Revisionworld)

Examine the Nature of Weimar Germany’s Economic Problems

Paragraph One: World economic conditions

World situation in 1920s less favourable than pre-1914
Germany had relied on exports as an impetus for growth
But world manufacturing output recovered from impact of war more quickly than world trade
Foreign trade now had smaller role in German economic life than pre-war
1910-13 German exports 17.5% of Net National Product (NNP)
1925-9 when Weimar most prosperous NNP figure was 14.9%
Note that as Germany’s territory was smaller after the war, if her economic activity had remained at pre-war levels, her export share ought to have risen

Paragraph Two: Economic effects of Versailles

Lost Silesian coal field, Saar Basin and phosphoric iron-ore fields of Lorraine
German chemical and pharmaceutical business had been one of the Empire’s most important industries – it faced new competition during 1920s because the victorious powers had confiscated the German patents
These problems limited the possibilities for German economic growth

Paragraph Three: Demographic developments

Developments in this area meant higher unemployment
German population, and thus overall demand, had fallen due to war casualties
Malnutrition and epidemic disease attacked population reducing number of live births
Fewer conceptions
Pre-1914 population boom arrived in the labour market. Pressure eased in 1930s as smaller numbers born after 1914 reached employment age
1925 5 million more people in labour pool than at time of 1907 census
During decade number of people available for work increased
Work force up from 32.4 million in 1925 to 33.4 million in 1931
Higher unemployment likely even without depression as labour force increased in a diminished population and with lower demand

Paragraph Four: Saving and investment

Get Revising