2. Many accounts of Weimar
Germany from 1924-1929
describe a ‘golden age’, part of
the story of the Roaring
Twenties.
Certainly compared with the
1923 crisis Weimar’s economy
improved, however the extent to
which this was a real recovery
causes historical debate.
3. There were certainly strengths
in the Weimar economy from
1924-1929.
During this period, average
wages consistently increased
(in actual terms, real terms and
after tax). In addition (until
1928) the number of strike
days fell, suggesting improving
worker satisfaction.
4. Industrial production also
increased substantially, with
industry, coal and steel seeing
improvements (albeit still
below 1913 levels).
The Dawes Plan had helped
too. Until 1927, reparation
payments were lower than
1923 as a percentage of
Germany’s GDP.
5. However there is also a range
of evidence that Weimar was in
fact greatly struggling and
being kept afloat simply by
loans from the USA.
From 1924 to 1929, average
unemployment increased
(especially in 1926).
Germany’s economy growth
also fell behind Britain, France
and the USA.
6. Certain groups in Germany were
facing particular difficulties.
Farmers saw price falls from
1927, costing them profits and
contributing to rising
unemployment.
The cost of welfare benefits
increased too, and even higher
taxes could not stop a growing
budget deficit.
7. The middle classes also had
economic concerns.
Many of them disliked paying
higher taxes at the same time
as welfare benefits increased.
Also the success of trade
unions meant that some saw a
reduction in the economic
advantage they had over
working class people.
8. Conservatives blamed Weimar
for economic problems, partly
linking this to Versailles
problems but also the costs of a
growing welfare state.
Some left-wingers blamed the
elites for not investing more in
their companies, or the
government for not using
subsidies effectively.
9. Historians’ views
• Paul Bookbinder: “By 1929 Germany had become the world’s
second industrial power behind the United States. Real wages
rose, and the standard of living for many increased.”
• William Carr: The extent of the boom “has been exaggerated
and superficial prosperity and growing international structure
masked a chronic state of political weakness.”
• Ruth Henig: By 1928 there was “disillusionment with the
Republic” among almost all groups.
• Stephen Lee: The stability of the Weimar economy and
political system “was partly illusory.”
