Notes from packet titled, "Weimar: The Years of Stability 1924-9"

The Economic Recovery- Following the hyper-inflation, Germany saw 5 years of economic growth and affluence
- The Strengths of the German Economy:
  • heavy industry was able to recovery quickly and production levels reached those of 1913 because of the use of more efficient methods of production.
  • Industry was able to lower cost because of the growing number of cartels (arrangements between businesses to control the market by exercising a join monopoly)
  • Exports rose by 40 %
- The Benefits of Social Welfare:
  • A compulsory unemployment insurance covered 17 million workers in 1927
  • state subsidies were provided for the construction of local amenities (i.e. park, schools, etc)
- The Weaknesses in the German Economy:
  • economic growth was uneven and value of imports exceeded the value of exports
  • number of unemployed averaged 1.9 million
  • agriculture suffered and income per head in agriculture was 44 % below the national average.
  • world economic conditions (trade did not return to pre-war levels and exports were hindered by protective tariffs)
  • balance of population was changing- unemployment was likely
  • Economy was dependent on foreign employment
  • Finances continually ran into debt
Gustave Stresemann's Achievements:
-Stresseman's Aims:

  • free Germany form the limitation of the treaty of Versailles
  • restore Germany to the status of a great power
  • restore Franco-German friendship
  • obtain sympathy from USA
  • friendship with USSR
  • encourage co-operation and peace with Western Powers.
  • restoration of full German rule over the Saar and Rhineland
-Actions
  • Called off passive resistance and resumed payments of reparations
  • Locarno Pact- an international security pact for Germany's western frontiers
  • Kellogg-Briand Pact- outlawed war as an instrument of national policy.
  • Young Plan-revised the payment of reparations
  • Treaty of Berlin- to continue a good Russo-German relationship
Weimar 1924-9: An Overview
-An Unstable Economy: problems in the economy were only temporarily fixed and it relied on the help of external powers
-A divided Society: deep class differences still divided society. Regional and religious differences also prevented national harmony.
-Political Division: The parliamentary system failed and the country failed to establish a shared political outlook
-Foreign Affairs: Many people rejected Streseman's foreign policy and pressed for a more hardline approach.