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Policies for recovery 1924-1928 - Coggle Diagram
Policies for recovery 1924-1928
Economics
Positives
Growth and developments
1928, production equalled that of 1913
By 1928, income 12% higher than in 1913
IG Farben becmae the ;largest manufacturer in Europe
Loans financed German industrial debvelopment
800 Million pumped into German industry by US businessers
Low inflation
Improved standard of living
Unemployment stable
Low inflation
Stable currency
Wages rose every year between 1924 and 1930.
Negatives
Sluggish agriculture
Recession from 1927
US dependence
German growth dependent on Dawes and Young loans, which were recalled in 1929.
Unemployment
Concerning signs that the Weimar economy was not producing enough jobs and unemployment was climbing before the depression
Never dropped to below 1.3 million
Weakness
Underinvestment
Did not perform as well as Britain or France in this period
Social tensions
Tensions between workers and industrialists as Industrialists resented mutual arbitration (introduced in 1928)
"Dancing on the edge of a volcano"- Stresemann 1929
Politics
Positives
Increased political stability
No Putsch attempts
No political assassinations
Grand coalition under Muller in 1928
Had a 60% majority in the Reichstag
Acceptance of democracy
1928 elections, 76% supported pro-Weimar parties
Nazis only won 2.6% in 1928
Far-right failed to get widespread support in the Young Plan referendum in 1929
Hindenburg
Despite his authoritarian past, Hindenburg embraced democracy and supported Muller in 1928- a socialist.
Negatives
Immature politics and unstable coalitions
SPD were reluctant to cooperate
1925, Luther bought down by debate about the colours of the flag
Coalitions often unstable
Left and right could agree on FP but not domestic politics
Extremist support
1/4 voted for antidemocratic parties in 1928
Hindenburg
Obstructive to working with the SPD before 1928 and insisted that the DNVP be included in coalitions.