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economic problems of the weimar republic
economic problems of the weimar republic
the economic impact of the first world war in europe
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In this essay I will consider to what extent the German economy has been central to change regarding the development of Germany over the whole period, 1890-1991. I will consider the German economy under the Kaiser in accordance with World War 1, during Hyperinflation under the Weimar Republic in 1923, in Nazi Germany under Hitler and in East and West Germany leading to the building of the Berlin Wall. It appears that the German economy to a large degree has been exceedingly central to change in the country over this entire period. It is evident though that the economy itself has not solely been the derivation of precise events over the course of the period. There have been other ideas and proceedings that must be taken into consideration and I aim to assess the prominence of these notions in opposition to the German economy. These include the radical ideas of the Kaiser and Hitler leading to the occurrence of World War 1 and 2, the ‘Stab in the back’ theory strengthening support for radical parties and anti-fascist ideals prompting the construction of the Berlin Wall.
The German economy under the Kaiser is an example of the effect the economy had on change in the country. The Weltpolitik policy was as adopted by Germany in the 19th century and they wanted their ‘place in the sun.’ Germany had industrialised rapidly since 1850 so that by 1900 under the Kaiser, its industry was the equivalent of Britain’s and bigger than France’s. This meant Germany had economic power and many people wanted to translate this into territorial expansion. Kaiser Wilhelm was too obsessed with his idea of increasing Germany’s sphere of influence over Europe. Growing in confidence Germany was involved in a Naval Race with Britain in the building of Dread...
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...lin Wall which intended to halt the migration of East Germans to the enriched West. Based on the evidence outlined above it is clear that the arguments for the German economy being central to change outweigh the arguments against. There are other points that are important in assisting change such as the Hitler’s aggressive but opportunistic foreign policy leading to World War 2. This is to a great extent more crucial to change than the German economy. But a final judgement suggests that overall no other theme was as imperative to change between 1890 and 1991 as the economy.
Bibliography
Secondary Sources
J Wheeler-Bennett, ‘Ludendorff: The Soldier and the Politician’, 1938
W Norton, ‘Germany's Aims In the First World War’, 1967
G Loescher, ‘The UNHCR and World Politics: A Perilous Path’, 2001
H J Braun, ‘The German Economy in the Twentieth Century’, 1990
The economic miracle was the high economic growth experienced by the FRG as a result of the Marshall plan and the financial reforms introduced by the finance minister, Ludwig Erhard. The financial reforms included implementing the currency reform in the Western Zones, lifting most restrictions on control prices in the market and reducing taxation. In the agriculture sector, although farmers continued to receive heavy subsidies, the structure of the economy was changed and as a consequence the proportion of the workforce employed in farming was nearly halved. This meant the economic miracle of the FRG wasn’t a total success because many people who previously had a job in the agricultural sector may find it harder to get a job elsewhere because they may have found it hard to transfer the necessary skills. However, it could still be argued that the agricultural sector was a success because although unemployment in the sector increased, the rationalisation by more mechanisation still brought about a substantial increase in production-nearly 25 per cent in the 10 years of the 1950s. Nevertheless, the agricultural sector wasn’t a total success because of the increase in unemployment in the sector. Another reason why the economic miracle wasn’t a total success was because Erhard’s implementation of the social market economy in 1948-9 did not immediately cause economic take off. The steep rise of prices which occurred was not matched by the rate of wage increases. This meant that the economic miracle wasn’t a total success because there was hardship for the poorer people in society as a result of prices rising at a faster rate than wages. Furthermore, the shortages of many resources, especially coal, led to a sharp increase in imports and a serious balance of payments deficit. This meant that the economic miracle wasn’t a total success because the German economy faced recession in 1949-50 because there was
The Songerweg emphasizes the particular model of history that Germany, unlike other Western countries, has gone through. Specifically, ‘proponents of this concept emphasize the peculiarities of German history, such as political institutions, social structures, or mentalities and experience, usually in comparison with other Western countries, to demonstrate the unique course of German history’ (Buse & Doerr, 1998, p. 934). Although initially the theory of Sonderweg viewed the characteristics of German historical development as positive, the situation has changed after the World War II. Specifically, in the 19th and early 20th centuries historians applied the Sonderweg model to stress a focus on the role of strong central state and military as the driving force of the development of the country (Buse & Doerr, 1998). In addition to this, historians regarded social reforms in Germany that were made from ‘above’ rather than being the outcomes of revolution to be a positive feature that depicted German state in a favorable way. Finally, the historical school viewed the course of German industrialization and culture as superior to similar processed in the rest of Western European
Until the second half of the nineteenth century Germany wasn’t the country we identify it to be nowadays, it was made up by a handful of states, each with different laws, currencies and trade barriers. The moment the Chancellor, Otto von Bismarck was in charge of policies, things started to change, he essentially created Germany. In 1948, unification started, and each state became part of a whole, with the same laws and currency, and most importantly, trade barriers were abolished. Consequently, trade between the states grew radically and boosted technological industrial growth. The government encouraged growth through adapted policies, in addition, German banks were created and were able to supply credit and investments to somehow stimulate the appearance of new businesses. Furthermore, as a consequence of the railway construction, coal extraction and iron manufacture reached their highest points in the nineteenth century. However Bismarck’s main aim was to protect the new Germany from wars with Russia and France, and the way he chose to achieve his goal was by engaging in a foreign policy manipulating game with the European powers: he tried to maintain good relations with Hungary and Russia and isolate France.
After the First World War Germany recognised her first ever democratic government, the Weimar republic lasted from 1918 – 1933 an astonishingly long time given its turbulent start. The November revolution saw the election of soldier and worker councils similar to that of the Russian revolution in 1917, it spread across Germany like wildfire and in turn split the country before a democracy could even be instated nevertheless on November 9th 1918 the German republic was established. From then on The Weimar Republic was set on unstable and insecure path and this is why it is one of Germanys most important historical periods; it was Germanys earliest form of non-imperial government and rule and its collapse in 1933 paved the way for the rise of Hitler and the Nazi party. For these reasons there have been endless works published on the Weimar republic and the outpouring of literature post world war two focuses on the collapse of the Weimar republic and how the Nazi party came to power. However, to understand why the debate surrounding the Golden Era in the Weimar Republic is an interesting one and lacking in historical works, it is key to examine the historiography of the Weimar republic as a whole. Furthermore, to understand why historians focus on other periods in the Weimar’s history in particular the consequences of the treaty of Versailles and the consequences of the Wall Street crash in 1928 which led to its collapse.
Germany and its Economy Known as the "fair" capital, Germany lies in the center of Europe and in the center of the European home market. Approximately two thirds of the top international fairs take place in Germany. Germany is successful. A leader in world trade, Germany is the third largest economy in the world and the biggest market in Europe. It wasn't always this way though; European power struggles wounded the country in two devastating World Wars in the first half of the 20th century and left the country dominated by the victorious Allied powers of the US, UK, France, and the Soviet Union in 1945.
The country of Germany is one of the strongest economies in Europe as a whole. A brief history and overall status of this country is going to be explained giving examples and demographics. Along with my understanding of the information, I will try to help you understand the importance of this country’s overall macroeconomic stance that contributes to today’s wealth of the European Union.
As soon as he came into power, Kaiser Wilhelm tore the democratic features that his liberal father helped develop. Real power no longer resided in the Reichstag, but almost solely in the Kaiser and his small sphere of military advisors. Encouraged by his military advisors, the Kaiser began massive ship building programs and militarized the populace. The rich Prussian tradition was restored. Germany’s behavior not only resulted in an arms race with traditional German enemies, but also alienated Germany’s close friend, Britain. German Chancellor Bethman-Hollweg summed up the Kaiser’s policy in this way: “Challenge everybody, get in everyone’s way and, in the course of it all, and weaken nobody.” By 1907, Britain, France, and Russia had formed the Triple Entente—brought together by their mutual apprehension of Germany rising
Continuing into the first chapter, the introduction on to explain the basic background of the story. After World War II, Germany became divided into two parts: West Germany, or the Federal Republic of Germany (FRG), and East Germany, or the German Democratic Republic (GDR). West Germany was controlled by the British, French, and American allied forces. East Germany was controlled solely by the Soviet Union. The division of Germany was supposed to be temporary to help speed up the reconstruction after the destruction of the war. However, the permanent division was a result of the Cold War. The Western allies all agreed on a common currency for their occupation zones, but the Soviet Union refused to participate. The tension continued to build, and the Western allies decided to declare their zones the “Federal Republic of Germany,” while the Soviets declared their zone the “German Democratic Republic.” As with the rest of Germany, the city of Berlin was also divided between the Western allies and the Soviet Union. In 1961, Germany became physically and totally divided when the Soviet Union built the Berlin Wall around the three Western sectors to keep their residents from travelling there. The FRG drafted the Basic Law as the temporary foundation of the new state. Under this Basic Law, the FRG developed one of the strongest political institutions in German history. On the other hand, even though the
Severe economic problems arose in Germany essentially due to the punitive provisions of the Treaty of Versailles. “The German government began to print money to pay its bills.” (McKay, 872). In order to make up for the massive debt and reparations connected to the Treaty of Versailles, the government started to print loads of money. The influx of money across Germany due to newly printed bills caused prices to rise. Money became rather worthless with an abundance of it, which hurt many people’s incomes. Hyperinflation soon occurred, which put the economy in a weak position and further contributed to the downfall of the Weimar Republic.
Fulbrook, Mary. A Concise History of Germany. 2nd ed. United Kingdom: Cambridge University Press, 2004. Print.
Richard Bessel’s article stresses the political structure of Weimar Germany as the cause of its failure. Its structure was flawed in numerous ways, all of which contributed to its inevitable failure. First of all, the problems within Germany due to the First World War were massive. This caused economic, political and social problems which first had to be dealt with by the new Weimar government. The loss of the war had left Germany with huge reparations to pay, and massive destruction to repair. In order to gain the capital needed to finance efforts to rebuild, and repay the Allies, the economy had to be brought back to its prewar levels. This was not an easy task.
After years of trying to unify as one nation and countless failures, the German people now believed that they themselves were among the superior races of the world and it was Germany’s destiny to become the greatest nation the world had ever seen. Under Bismarck’s rule the economy boomed. The German Industrial Complex, powered by its heavy war production, made many men and the nation itself very wealthy. This wealth and prosperity led to an intoxicating feeling among its people, a feeling that they were the next great world
Despite the favourable outlook of Germans regarding reunification, its initial stages were unsuccessful in establishing a foundation which Germany could answer the people’s dreams of peace, prosperity and unity. The collapse of communism in Europe signified a change in people’s ways of thinking due to the fact East Germans had experienced suppression for forty years. Subsequent to the collapse of the Berlin Wall and the March 1990 free elections, a positive outlook for the future and belief in freedom began to proliferate amongst East Germans. German Chancellor Kohl took an optimistic outlook for the future, and believed German free enterprise would create ‘economic miracles’ . This new method of thinking was growing within the East of Berlin before the problems of reunification that soon grew within society.
...After we consider all these points mentioned we begin to see how everything worked and connected to form one huge disaster for Germany. We start to see how all these things played a part, the reparations led to unemployment that led to no money that led to overprinting of money. How the huge consequence of the reparations led to the unsuccessful paying of it leading to the French invasion of the Ruhr which led to strikes and therefore no products to trade with. How the unstable Weimar government led to extremist parties that damaged the economy further and brought inflation to its highest. The effects were probably the worst, the starvation coupled with the disease epidemic that killed people off and the worthless tonnes of paper notes roaming around the nation. It all in all was a very bad time in Germany one that they always found it hard to recover from.
Prior to unification in 1871 the territory that would become Germany was comprised of thirty-nine independent states and city states joined together in a loose German Confederation. The most powerful among these states was Prussia, both geographically the largest state and that with the largest population. The influential politicians and policies that came out of Prussia were instrumental in the gradual formation of a united Germany. Beginning with the rise of Napoleon, the nineteenth century was a time of incredible change which dramatically altered the political balance of Europe. In order to understand the factors that culminated in official German unification on January 18 1871, it is necessary to examine the preceding decades. No single factor can be credited for the unification of the German states. Rather, the combined forces of social change, economic strength within a unified customs union, the moral justifications provided by nationalism, Bismarck’s careful manipulation of internal politics and the advantages gained through military action resulted in the unification of Germany.