Weimars Economy 1924-1929

Question 1

What were strengths of the economy

Answer 1

-By 1928 production in heavy industries like coal had returned to 1913 levels due to use of efficient production methods and foreign investment

-Exports rose by 40%

-Hourly rate for wages increased between 1924-1930

-1927 unemployment insurance act

-Overheads in industry were low due to cartels (groups of businesses which cooperated to establish advantages over their smaller competitors)

Question 2

What were the weaknesses of the economy

Answer 2

Economic growth uneven and there were more imports than exports

Mid 20’s number of adults joining workforce rose due to high pre-war birth rate. Strain on job market and increase in unemployment levels

Farming never recovered to pre-war levels. Decline in living standards had knock on effect on the economy.

Loss of valuable land and resources in Treaty of Versailles

Businesses came to rely on foreign loans due to Germans being reluctant to invest in banks/businesses because of 1923 experiences

World trade did not return to pre-war levels and this affected Germany as she was a major exporter