Economy Of Germany (Weimar) Flashcards
What was agriculture like in the 20s?
It was a big employer in the 1920s. Between a 1/3 and 1/4 of all workers were from the agricultural industry
Bigger farms managed better than smaller farms as they could invest in new machinery and techniques. Small farms were heavily in debt.
What was government spending like in Weimar Germany?
Borrowing was heavy and spending was heavy. It subsidised grain production and industry and spent heavily on social welfare. It needed foreign loans to sustain the spending as taxes weren’t enough. This was due to people not willing to pay taxes as their situation wasn’t improving. In 1913, the lowest tax band was made up of 47%. In 1926 it was 62% and 55% in 1928
What happened to industrial production?
By the end of 1932, it was half its 1928 levels. Unemployment rose as 5.6 million people were unemployed in 1932. In 1921 it was 346,000. Real wages declined by 14%.
Why was the economy failing?
Government could not agree or make decisions quickly without Stresemann
What did the government do in response to the depression?
Bruning cut government spending on welfare, cut wages and increased taxes. It brought deflation but avoided devaluing the currency. One benefit was that Germany no longer needed to pay back reparations for the time being. His policies did not work as it simply deepened the depression.
