Weimar: Years of Stability 1924-9. ECONOMIC RECOVERY (7)

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Strengths of G. economy

  • Heavy industry recovered quickly - more efficient production methods and increased investment from foreign bankers
  • Growing number of cartels (business agreements) - so G. industry could lower costs
  • 1925-1929 G. exports rose 40%
  • 1924-1930 Wage rates rose every year

Benefits of Social Welfare

  • Principles of welfare state written into Constitution
  • Generous pensions + sickness benefits introduced
  • 1927 - compulsory unemployment insurance covering 17 million workers introduced
  • State subsidies provided for parks, schools, housing etc

Weaknesses in G. economy

  • Economic growth = uneven. 1926 - production declined
  • Value of imports exceed exports
  • Unemplopyment never fell below 1.3 million
  • Grain production - only 3/4s of its 1913 figure + farmers faced falling incomes

Fundamental economic problems

  • World economic conditions didn't favour G.:
    • G. exports hindered by protective tariffs
    • T.O.V meant they lost resources in Alsace-Lorraine and Silesia
    • Fall in world prices from mid-1920s placed great strain on farmers who made up 1/3rd of G. population
    • This


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