Fundamental economic problems

Question 1

Why did world economic condition not favour Germany?

Answer 1

World trade did not return to pre-war levels and there was decline of income which hindered the spending power of Germany.

Question 2

What was the changing balance in population

Answer 2

32.4 million in 1925, to 33.4 million in 1931. So unemployment would still increase.

Question 3

How were savings and investments discouraged?

Answer 3

Less enthusiasm to invest in money again after hyper inflation.

Question 4

Why did the government finances raise concern?

Answer 4

Government kept running into debt and by 1928 public expenditure had reached 26% of GNP