Weimar Economy

Question 1

Early Economic Crises

Answer 1

Social Welfare
Debt and Reparations
The Ruhr
Hyperinflation

Question 2

Social Welfare

Answer 2

After the war government set up many pension payments for the wounded and widows and orphans as well as retraining schemes ; WEIMAR WAS LIBERAL SO MADE EFFORTS FOR ADEQUATE PROVISION with national committees to oversee care in Länder many social welfare programmes with the Government supporting 768000 disabled veterans by 1924 ; many were on regional poor relief and Government went into debt to make them

Question 3

Debt and Reparations

Answer 3

By 1918 it owed 150 billion marks through TOV which put Germany deeper in debt - they trie to make payments but were struggling so negotiated with France who thought Germany were lying so until 1924 reparations were paid through raw materials etc

Question 4

The Ruhr

Answer 4

January 1923 - Germany failed to deliver its payment reparations in full and so France and Belgium occupied the Ruhr which was vital to Germany’s economy due to coal (as decided in 1921 London Ultimatum) ; urged workers in Ruhr to carry out passive resistance and stopped reparations to France. France retaliated by setting up a boundary around Ruhr and taking control of postal services ; DIVERTED GERMAN PUBLIC’S DISTRUST AWAY FROM GOVERNMENT AND TO OCCUPIERS

Question 5

Hyperinflation

Answer 5

1 mark May 1922 to 700 billion marks by November 1923 ; people lost faith in money and now increasingly reliant on bartering and the black market ; government floundering and introduction of Notgeld ; all those on fixed payments, Walter schemes suffered and Von Lingans family rich had to move and take job in the offices of a factory - middle class people who had stored away their money lost out.

Question 6

Change of Government?

Answer 6

Gustav Stresemann - August 1923 ; DVP head made chancellor and use of Emergency decree allowed him to postpone reichstag meetings and this allowed unnecessary decision skiing and allowed him to act much more decisively because it could take decisions without arguing with several coalition members (through PR)

Question 7

How did Stresemann make money work?

Answer 7

Rentenmark introduced in October 1923 ; overseen by Schacht (president of Reichsbank) - restored faith in the German currency both away and abroad - prices settled and gov used emergency decree to settle rents etc

Question 8

Second Currency Change

Answer 8

Reichsmark in 1924 - overseen by Schacht again

Question 9

Main Stresemann Policies

Answer 9

1923 30th October - Emergency decree that set up state arbitrators to work out disputes between employers and employees giving control over wages and working hours
1924 - Dawes Plan comes into force
1925 December - Locarno Treaty signed (Germany agrees to demilitarisation of Rhineland and borders set by TOV)
1926 - Germany League of Nations
1928 - Kellogg Briand Pact signed by Germany
1929 - Young Plan

Question 10

Why was foreign policy also bad?

Answer 10

Produced stability and made Germany an acceptable foreign power so other countries were happy to make trade agreements BUT this was based on US Loans mainly - dependent

Question 11

Impact of 1929 Great Depression

Answer 11

Led to a lot of unemployment and more bankruptcies because failure to pay loans - German industrial production fell and by 1932 it was half its 1928 levels

Question 12

Highest level of unemployment

Answer 12

5.6 million in 1932

Question 13

How did Parties in Grand Coalition react?

Answer 13

Without Stresemann there was no cooperation ; they failed to deal with it because they could not make decisions or act quickly - coalition collapsed and led to Bruning who suggested cuts in social welfare and higher taxes ; these were rejected by reichstag but they used article 48 to implement them anyway

Question 14

Did Bruning policies work?

Answer 14

Only positive was that they got out of paying reparations as depression deepens ; 1931 Hoover Moratoroum suspended German Loans
By issuing these emergency decrees and not using a Keynesian approach he depended recession - governments unpopularity led to a rise in popularity of extreme parties

Question 15

Why was the Government unpopular? (Living standards)

Answer 15

Initially after war it was good - but as inflation increased they were doing badly paid job for long hours - CRAMPED HOUSING and no running water ; skilled workers ended up claiming benefit - many lost businesses

Question 16

Effect of Depression on Women

Answer 16

Women had to take in a lot more home based work - paid by the piece ; paid for every 50 buttons for example and these women had to work all day and night - even in factories no more 8 hour working day (established in 1918) - WOMEN WERE PAID LESS SO LESS UNEMPLOYMENT DECREASE