Weimar Germany - Economy 1924-29.pptx

1. Weimar economy,
1924-1929

2. From 1924-1929 there was
various examples to suggest
that the Weimar economy was
improving.
However there were also
counter-arguments to suggest
that Germany’s economy had
not yet fully recovered from
the effects of war and
hyperinflation.

3. Germany’s industrial
production was positive;
output levels were higher
than in 1913 (before World
War One began).
This meant that more goods
were being produced in
sectors such as coal, steel
and iron, creating more job
opportunities for workers.

4. However this was not true for
all of Germany. Farm
production was still well
below 1913 levels.
This meant two things: fewer
agriculture jobs available, and
lower wages. By 1929, German
farm workers earned only
around half of the average
salary in Germany.

5. German exports were also
doing well. Germany was
selling more products
(exports) to other countries.
In 1924, German exports were
worth 6.7 billion marks; this
increased to 13.5 billion
marks by 1929.
All of this meant more job
opportunities for Germans.

6. However at the same time
Germany was also bringing in
even more imports (goods
from other countries).
The difference between
imports and exports is called
the balance of payments.
Having higher import levels
means more money is leaving
the country.

7. Most German workers were
earning more money too.
Average wages rose every year
between 1915 and 1929.
However there were still
significant arguments between
employees and employers. In
1928 there were 739 strikes in
Germany, mostly concerning
wages or working hours.

8. Unemployment also caused
some concerns in Germany.
Unemployment actually
increased; in 1928, 15% of the
working age population was
unemployed, this increased to
18% by February 1929.
However more people were
covered by unemployment
benefit, giving them an income.

9. Historians’ views
• Eberhard Kolb: “it is generally accepted that the economic
situation in Germany was highly precarious even before the
world depression.”
• Knut Borchardt: argues that the Weimar government spent
more money than it could afford – including allowing
unaffordable higher wages – damaging the economy
• Carl-Ludwig Holtfrerich: says that business owners – not
workers’ wages demands - caused economic problems as the
businessmen failed to invest in their companies