Limits to the economic recovery Flashcards
What remained a persistent problem?
Unemployment. By the end of 1925, unemployment had reached one million. By March 1926, it was over three million. This was partly owing to there being more people seeking work, public spending cuts and also companies reducing their workforces in order to make efficiency savings.
What did mining companies do?
They reduced their workforces by 136,000 between 1922 and 1925 and reduced them by another 46,000 between 1925 and 1929.
What happened to the Mittelstand?
They gained very little as they had been bankrupted by hyperinflation. White collar workers also didn’t enjoy the wage rises of the industrial sector.
What happened to farmers?
Farmers gained very little benefit as worldwide agricultural depression kept food prices low and few farmers were able to make a profit on their land.
What did the govt do to help farmers?
They made it easier to borrow money but this made matters worse as farmers became saddled with debt at a time when prices were falling and they could not keep up with repayments.
What did farmers do in 1928?
Farmers initiated a series of small-scale riots known as the ‘farmers revenge’ in protest against foreclosures and low market prices.
What was agricultural production like in 1929?
It was less than 3/4 of its pre-war levels.
