Weimar economy

Question 1

WHat was employment like 1919

Answer 1

1 million unemployed

2nd half decreased by 50% but only due to v v low wages meaning employers could take on more workers

Question 2

How did Stresseman deal with Hyperinflation

Answer 2

Policy of Fulfilment- called off passive resistance

Rentenmark introduced 1923

Dawes Plan 1924- 800 mill loan, repayments reduced, longer period

Question 3

Impact of Dawes plan

Answer 3

GDP recovered to 1913 level

Used extra money to invest in public work schemes

More US investment as US keen to protect German economy

Production doubled 1923-28 due to extra money going into industrial development

Question 4

WHat was the young plan

Answer 4

Reduced reparations by 20%

Question 5

EVidence for Golden years

Answer 5

Real wages grew every yeat after 1924
- 1928 increased 12%

By 1929 Exports increasing

Question 6

EVidence there wasnt a golden years

Answer 6

By 1929, agricultural output les sthan 75% 1913 levels

Rural unemployment- farmers went into debt

Unemployment spiked 1926, didnt fall below 6%

Question 7

How did people benefit from Hyperinflation

Answer 7

Foreign currencies, fixed rents, debts

Hugo Stinnes used loans to buy competitors’ firms
-By 1924 owned 20% of industries

Question 8

Wages 1919

Answer 8

1919 value of wages less than 1/2 of 1913 level

Question 9

How did great depression affect wages?

Answer 9

Civil servant wages cus 20%

Question 10

Factors unique to Germany that helped economic success 1924-29
(+ counter as to why its stresseman)

Answer 10

Germany had abundant raw materials
Established Seaports - Eg. Kiel + Kiel Canal (1895/1914)
Established Industries such as Krupp Armaments + Mercedes Benz

Needed industrial invesemnt from stresseman- domestic policy
Production doubled 1923-28 due to extra money going into industrial development- wages rose every year