Policies for Recovery, 1924-1929

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.'

1Political & Governmental Change, 1918-1989

1.1Creation & Collapse of Weimar, 1918-1932

1.1.1Creation of a Republic

1.1.2Strengths & Weaknesses of Weimar Constitution

1.1.3Overcoming Challenges to the Constitution

1.1.4The Great Depression

1.1.5The Collapse of Democracy

1.1.6The Collapse of Democracy 2

1.1.7Hitler Becomes Chancellor

1.2Nazi Dictatorship, 1933-1945

1.2.1Establishing a Dictatorship

1.2.2Consolidating Power

1.2.3Nature of Government

1.2.4Government in Wartime

1.2.5Top Grade AO2/3 - Political & Governmental Change

1.3Return to Democratic Government, 1945-1989

1.3.1Creation of the FRG, 1945-1949

1.3.2Consolidation Under Adenauer

1.3.3Consolidation Under Erhard

1.3.4Maintaining Stability Under Brandt

1.3.5Maintaining Stability Under Schmidt

1.3.6Maintaining Stability Under Kohl

1.3.7Top Grade AO2/3 - Return to Democratic Government

2Opposition, Control & Consent 1918-1989

2.1Opposition to Government, 1918-1989

2.1.1Impact of Versailles

2.1.2Political Extremism & Crises, 1918-1932

2.1.3Opposition & Dissent in Nazi Germany, 1933-1945

2.1.4Political Dissent from the Left, 1949-1989

2.1.5Political Dissent from the Right, 1949-1989

2.1.6Top Grade AO2/3 - Opposition to Government 1918-89

2.2Controlling the People, 1918-1989

2.2.1Attempts to Control Extremism

2.2.2Repression, 1933-1945

2.2.3Censorship & Propaganda, 1933-1945

2.2.4De-Nazification Policies of Western Allies, 1945

2.2.5Constitutional & Legal Response to Extremism, 1949

2.3Popular Support, 1918-1989

2.3.1The Nature of Support for the Weimar Government

2.3.2Support for the Nazi Regime

2.3.3The Nature of Support for Democracy, 1945-1989

2.3.4Top Grade AO2/3 - Controlling the People

3Economic Developments & Policies, 1918-1989

3.1Reacting to Economic Challenges, 1918-1932

3.1.1Economic Crises & Government Response, 1918-1923

3.1.2Economic Loans, 1924-1928

3.1.3Policies for Recovery, 1924-1929

3.1.4The Great Depression

3.1.5Change in Living Standards

3.1.6Top Grade AO2/3 - Reacting to Economic Challenges

3.2Controlling the Economy, 1933-1945

3.2.1Attempting Economic Recovery

3.2.2Creating a Command Economy

3.2.3Change in Living Standards

3.2.4Impact of War

3.2.5Impact of War 2

3.2.6Top Grade AO2/3 - Controlling the Economy

3.3Creating the Social Market Economy, 1945-1989

3.3.1Economic Recovery, 1945-1955

3.3.2The Economic Miracle, 1955-1966

3.3.3Surviving the Recession, 1960-1969

3.3.4The Oil Crisis

3.3.5Integration into the European Economy

3.3.6Change in Living Standards

3.3.7Top Grade AO2/3 - Creating Social Market Economy

4Aspects of Life, 1918-1989

4.1Attitudes Towards Women, 1918-1989

4.1.1Role & Status of Women in the Weimar Republic

4.1.2Impact of Kinder, Küche, Kirche

4.1.3Impact of WW2 on Women

4.1.4Role & Status of Women in the FRG

4.1.5Top Grade AO2/3 - Attitudes Towards Women

4.2Education & Cultural Developments, 1918-1989

4.2.1Education in Weimar

4.2.2Cultural Experimentation in Weimar

4.2.3Education Under the Nazis

4.2.4Nazi Culture

4.2.5Education in the FRG

4.2.6Generational Conflict

4.2.7Top Grade AO2/3 - Education & Cultural Development

4.3Position of Ethnic Minorities, 19189-1989

4.3.1Ethnic Minorities in the Weimar Republic

4.3.2Nazi Racial Policies, 1933-1939

4.3.3Nazi Racial Policies During the War

4.3.4Ethnic Minorities in the FRG

4.3.5Top Grade AO2/3 - Position of Ethnic Minorities

5Historical Interpretations

5.1Influence of German History

5.1.1Influence of German History

5.2Hitler & Foreign Policy

5.2.1Hitler & Foreign Policy

5.3Contribution of Other Nations to WW2

5.3.1Weak Nations

5.3.2Appeasement

5.3.3The Rise of Fascism

5.4Reasons for Invading Poland

5.4.1Reasons for Invading Poland

5.4.2Top Grade AO2/3 - Historical Interpretation

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