Investigating the Stability of the Weimar Republic Economically and Politically

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Investigating the Stability of the Weimar Republic Economically and Politically

The period of 1924 - 29 is often seen as the high point of the Weimar

Republic, and is referred to as a 'Golden Period'. This interpretation

is also heightened by the fact that the period before it (1919-23) was

filled with the crisis and chaos of rebellions, political

assassinations and hyperinflation. Also, the political and economic

uncertainty that followed (1929-33) added to this description.

However, the fact that such rapid disintegration followed after 1929

has lead many historians to believe that the Republic was, in-fact,

not so stable at all. In order to ascertain whether this is true or

not, it is necessary to examine the economic and political situation

with in the Weimar between 1924 - 1929.

The most striking difference occurring during this period appeared to

be the economic recovery. Historians such as Bookbinder have suggested

that by 1929 Germany had the third most powerful economy in the world.

The Dawes plan was introduced, which saw Germany receiving an

800million gold mark loan. This meant that they were able to pay off

the reparations over a longer period of time (the Dawes plan was also

revised by the Young plan which reduced reparations even further), and

could also invest in new projects such as housing and roads. It also

meant that in 1927 the social insurance scheme was brought in to

protect over 17million workers. Unemployment insurance was also

brought in and financed by a levy, half paid by employers, half by

employees. Factories were re-equipped with new machinery such as the

new Ford conveyor belt, which increased efficiency. In 1923 industrial

output was already exceeding 1913 levels and this had doubled by 1929.

Inefficiency was also reduced in other ways. For example there was a

massive cartelisation of business. This is where manufacturers and

producers join together to control prices; companies that were

involved in this system included IG Farbem (chemical producers).

Article 165 in the constitution had meant that the government

regulated labour practices and wage regulation.

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