1. Political, economic and social issues in the Weimer Republic to 1929 Flashcards
By mid 1920s, after the hyper inflation and French occupation of 1923, what had Germany become ?
become a booming, modern economy which was quickly reasserting itself as dominant force in both European and World economy.
What was Political situation like?
settled down, violence rare and fears of Weimar Constitution seemed unsupported
But this story of success merely superficial as?
existed major fundamental flaws in entire socio-economic-political fabric of the Republic
What was Weimer republic greatest weakness?
its failure to establish lasting political stability
Quote by R. Evans to describe instability of political gov?
“the political situation was looking fragile… the Republic was as far away from achieving stability and legitimacy as ever”
Economic Issue: what did Stresemann’s end of passive resistance in August 1923 bring?
recovery to hyper inflation
Economic Issue: Dawes Plan when and who?
US banker Charles Dawes
1924
Economic Issue: result of Dawes Plan?
reduction of reparation payments, at the same time making loans of $800 million available from the USA. There would be 2-year moratorium on reparation payments. Would be adjusted to Germany’s ability to pay. Brought economic growth, affluence, confidence and creative determination to Germany
Economic Issue: Dawes Plan negative?
Germany in return lost control of its Central Bank = to ensure no repeat of excessive print of money and secure gov revenues. Also lost control of railways
Economic Issue: was Dawes Plan popular?
not popular at first but was eventually accepted, foreshadowed the start of a German economic boom.
Economic Issue: how was stability restored?
after introduction in November 1923 of new currency, the Rentenmark – value tied to that of gold, with tight restrictions being placed on the issuing of banknotes
Economic Issue: what was currency of Rentenmark based on?
value of land -> rapid growth in industry
Economic Issue: what happened to industries with intro of Rentenmark?
restructured and modernised, with coal, iron and steel production exceeding pre war figures and exports doubled. Modernised production methods
Economic Issue: why did Economy recover quickly ?
as German territory not affected by war destruction (no reconstruction needed)
Economic Issue: what did inflation help?
helped industrialists to expand and allow Germany to sell goods cheaply
Economic Issue Flaws: reliance almost entirely on flow of US loan money into country?
Any crisis in US would severely affect German economy. Although it did give support to have sound economy and financial footing at start
Economic Issue Flaws: what was never good in economics?
US loans lent on short term basis “Borrowing short and investing long”
Economic Issue Flaws: Quote by Gustav Stresemann about dangers of living in borrowed money?
Germany “lived on borrowed money… if a crisis every hit us… We are not only military disarmed, we are also financially disarmed”
Economic Issue Flaws: what did Economic modernisation cause?
high structural unemployment = 1926 -> 10%
Economic Issue Flaws: what happened to agriculture?
Agriculture stagnated – by 1926, farming sector experience agricultural depression (price of farm products decline)
Economic Issue Flaws: what did Nazi Party campaign strongly for?
The Nazi Party campaigned strongly at election times to win the votes of farmers, with promised to reduce taxes, cheaper electricity and favourable revision of inheritance laws
Economic Issue Flaws: why was reliance on international trade dangerous?
1920s period of growing protectionism -> worsened when depression hit and difficult to sell German exports. Costs of imports higher than the exports.
Economic Issue Flaws: what happened with intro. of Rentenmark?
came deflation, followed by shortages of basic commodities, which, in turn, produced a crime wave as the poor restored to stealing foods.
Economic Issue Flaws: evidence of theft and what this used for?
There were 365 000 convictions for theft in 1923 – sevenfold increase over 1913 -> used as evidence for conservative members as serious moral decline under democracy.
Economic Issue Flaws: What did these economic flaws lead to?
Served to questions the legitimacy of Weimer Republic and foster desire amongst many for a more authoritarian system.
Economic Issue Flaws: what was Currency stabilisation also accompanied by?
by gov cost cutting – contributed significantly to unemployment rate which remain quite high for the rest of 1920s.
Economic Issue Flaws: when and what did the economy start to experience serious problems?
In 1928, before the great depression: decline in flow of foreign investment as money moved out of Europe and into the New York stock market which was booming at the time
Economic Issue Flaws: why did interests rates rise?
an attempt to attract foreign investment
Economic Issue Flaws: impact of increase in interest rates?
contributed to a fall-off in the level of economic activity. As a consequence, production slowed and unemployment rose
Economic Issue Flaws: October 1929?
the New York stock market collapsed and the United States began its slide into economic depression.