Lecture notes
Economy of Weimar Republic
These are comprehensive notes about the economy of the Weimar Republic
[Show more]
2 reviews
By: Robbiegael • 4 year ago
By: jusneedinhelp • 5 year ago
Content preview
Topic 3: The economy of the Weimar Republic 1924-29Economic Recovery
Traditional view: After the hyperinflation crisis, the introduction of the new currency (rentenmark)
and the measures brought about by the Dawes Plan ushered in 5 years of economic growth and
affluence. The period does stand out between the economic chaos of 1922-23 and the Great
Depression of 1929-33
The strengths of the German economy
Despite the loss of resources as a result of the TOV, heavy industry was able to recover
reasonably quickly and by 1928, production levels reached those of 1913.
This was the result of the use of more efficient methods of production, particularly in coal
mining and steel manufacture, and also because of increased investment
Foreign bankers were particularly attracted by Germany’s high interest rates
German industry also had the advantage of being able to lower costs because of the growing
numbers of cartels which had better purchasing power than smaller industries
Example of Cartel: IG Farben (chemical giant) became the largest manufacturing enterprise
in Europe, whilst Vereinigte Stahlwerke combined the coal, iron and steel interests of
Germany’s greatest industrial companies and grew to control nearly half of all production
1925-29: German exports rose by 40% and such economic progress brought social benefits
as well (interconnection between economic improvement and social benefits)
Hourly wages rates rose every year from 1924-30 and by as much as 5-10% in 1927 and 1928
The benefits of social welfare
Striking improvements in the provision of social welfare
Principles of a welfare state were written into the new Weimar Constitution and in the early
1920s generous pensions and sickness benefits were introduced
Approx. 40% of federal government expenditure went on war-related pensions to nvalids,
widows and orphans
In 1927, a compulsory unemployment insurance covering 17million workers was created,
which was the largest scheme of its kind in the world
State subsidies were provided for the construction of local amnesties such as parks, schools,
sports facilities and council housing
All these developments, alongside obvious signs of wealth (increasing no. of cars; growth of
cinema industry) supported the view that the W.R’s economy was enjoying boom conditions
However, social costs had economic implications
Although such measures strengthened support amongst many ordinary Germans, the
regime also suffered from exaggerated expectations
Welfare reforms affected the elite’s attitude to the Republic and the resulting high taxation
and comparative redistribution of resources away from the elite reinforced its suspicions of
the new democratic system
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ncarlin1998. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £3.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
65507 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 15 years now