Industry & Agriculture

Agriculture in Weimar Germany

Germany lost 15% of its pre-war agricultural production. Despite government efforts, there was little growth in German agriculture after 1924.

Problems in agriculture

Poor weather, global production and tariffs all damaged farming. There were severe price drops in 1925-6 for grain.
In 1928, farmers demonstrated about foreclosures and low prices. Demonstrations often became riots.
Agricultural prices fell sharply between 1927 and 1929.
By 1929, German agricultural output was less than 75% of 1913 levels.

The need for agricultural modernisation

Food imports were too low for German farmers to compete. Farmers needed to modernise, improve productivity and invest in machinery e.g. tractors.
Farms that did so saw improved productivity, but rural employment fell. Also, many farmers borrowed to invest then, when prices fell, went into debt.

Government agricultural policies

Subsidies for farmers (increasing government expenditure).
Protectionist tariffs on imports to increase the price of food from other countries. This helped German farmers but hurt consumers.

Industry in Weimar Germany

Following hyperinflation, German industry began to recover. But not all major industrial companies supported the Weimar Republic.

Growth of industry

German industry grew overall, but not steadily.
There was rationalisation (making industry more efficient) and cartelisation (merging large firms into giant cartels) e.g. I.G. Farben, Krupp A.G.
After the inflationary early 1920s, demand for goods fell, leading to bankruptcies. The fall in bank lending under Schacht contributed to this.
Bankruptcies also increased because inefficient firms’ costs were too high. Firms that could afford loans rationalised with new technology to cut costs.

Workers

Wages were the largest cost, so firms also saved money by laying off workers. Unemployment did not fall
Real wages grew every year after 1924: in 1927 by 9%; in 1928 by 12%.

Key industrial companies

IG Farben was formed by five of Germany's largest chemical companies merging.
Krupp AG was one of Germany’s most important employers. Its owners did not support the Weimar Republic although worked with the government.
Krupp produced arms in Sweden and the Netherlands. It also secretly supplied the German army in contravention of Versailles.

Industrialist opposition to the Weimar Republic

Industrialists trust in the Weimar Republic was falling by the end of the 1920s. In 1928, employers in the Ruhr ironworks dispute rejected the ruling of arbitration.
Employers also succeeded in ending the eight hour day, brought in by the Weimar government.

Recovery in the Weimar economy

The recovery of the German economy after World War One could begin in earnest. But Germany was very dependent on its economic competitors.

Economic improvements

Industrial production grew 1924-1929, with a blip in 1926.
Real wages and living standards grew for those in employment.
Overall economic production was slightly up on pre-war levels by 1929.
By 1929, exports were increasing.

Economic failures?

Unemployment rose, with a spike in 1926. It did not fall below 6%.
Bankruptcies rose from 5,700 in 1924 to 31,000 in 18 months from 1925-27.
Germany’s main competitors (UK, France, USA) all grew more than Germany.
Imports generally stayed above exports, except for 1926.

Historical & economic assessment

The economist Peter Temin (1991) argues that the German interwar economy was inherently flawed.
- In 1928 railway companies had to abandon investment projects because they couldn't borrow money.
Economist Isabel Schnabel (2004) says German banks took on too much risk in the 1920s.
- Assets owned by German banks rose 5x from 1924-1930.
- In 1929, 18% of German bank deposits were foreign. Meaning they could be withdrawn overseas (which happened after Wall St Crash).
- The roots of economic problems 'lie in Germany's reconstruction after the war on volatile short term foreign debt.'

1The Weimar Republic 1918-1933

1.1Establishment Of The Weimar Republic 1918-1924

1.1.1Post WW1

1.1.2Weimar Constitution

1.1.3Peace Settlement

1.1.4End of Topic Test - Germany Post WW1

1.1.5Economic Issues

1.1.6Economic Issues 2

1.1.7Social Issues

1.1.8End of Topic Test - Economic & Social Issues

1.1.9Extremist Threats

1.1.10Extremist Threats 2

1.1.11End of Topic Test - Extremist Threats

1.1.12Political Instability & The Invasion of the Ruhr

1.1.13Weimar Government by 1924

1.1.14End of Topic Test - Weimar Government by 1924

1.1.15A-A* (AO3/4) - Germany Post WW1

1.2The 'Golden Age' Of The Weimar Republic 1924-1928

1.2.1Economic Developments

1.2.2Industry & Agriculture

1.2.3End of Topic Test - Economic Developments

1.2.4Social Developments

1.2.5Social Developments 2

1.2.6End of Topic Test - Social Developments

1.2.7Political Parties

1.2.8Political Stability

1.2.9End of Topic Test - Weimar Politics

1.2.10Germany's International Position

1.2.11Germany's International Position 2

1.2.12End of Topic Test - International Position

1.2.13A-A* (AO3/4) - The Weimar 'Golden Age'

1.3The Collapse of Democracy 1928-1933

1.3.1The Impact Of The Depression

1.3.2Politics After The Depression

1.3.3The Appeal Of Extremism

1.3.4End of Topic Test - The Depression & Politics

1.3.5'Backstairs Intrigue'

1.3.6'Backstairs Intrigue' 2

1.3.7End of Topic Test - Backstairs Intrigue

1.3.8Political Developments

1.3.9The State by March 1933

1.3.10End of Topic Test - Political Developments

1.3.11A-A* (AO3/4) - The Collapse of Democracy

2Nazi Germany 1933-1945

2.1The Nazi Dictatorship 1933-1939

2.1.1Hitler's Consolidation Of Power

2.1.2The Terror State

2.1.3End of Topic Test - Consolidation of Power

2.1.4Opposition

2.1.5Propaganda

2.1.6A-A* (AO3/4) - Terror State & Propaganda

2.1.7End of Topic Test - Propaganda

2.1.8Economic Policies

2.1.9Economic Policies 2

2.1.10Impact Of Economic Policies

2.1.11Impact Of Economic Policies 2

2.1.12End of Topic Test - Economic Policies

2.1.13Social Policies

2.1.14Social Policies 2

2.1.15Volksgemeinschaft

2.1.16End of Topic Test - Social Policies

2.1.17A-A* (AO3/4) - Economic & Social Policies

2.2The Racial State 1933-1941

2.2.1The Radicalisation Of The State

2.2.2Anti-Semitism

2.2.3Development Of Anti-Semitic Policies

2.2.4Development Of Anti-Semitic Policies 2

2.2.5End of Topic Test - Anti-Semitism

2.2.6Treatment of the Jews in the Early Years of War

2.2.7Deportation & Anti-Semitism Evaluation

2.2.8End of Topic Test - Early Treatment of the Jews

2.2.9A-A* (AO3/4) - The Racial State

2.3The Impact Of War 1939-1945

2.3.1Home Front

2.3.2Impact On Society

2.3.3Impact On Society 2

2.3.4End of Topic Test - Impact of the War

2.3.5War Economy

2.3.6War Economy 2

2.3.7Policies Towards The Jews & Untermenschen

2.3.8A-A* (AO3/4) - Impact of the War

2.3.9End of Topic Test - War Economy

2.3.10Opposition

2.3.11Opposition 2

2.3.12Nazi State by 1945

2.3.13End of Topic Test - Opposition

2.3.14A-A* (AO3/4) - Opposition & The State in 1945

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