To what extent were the years c1925-1929 a time of Economic and Political stability for the Weimar Republic?

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Inny Atwal

To what extent were the years c1925-1929 a time of Economic and Political stability for the Weimar Republic?

In Germany the period between 1925 and 1929 was often referred to as the 'golden age' of the Weimar Republic. Germany had recovered after the First World War and was enjoying 'relative stability' under the power of Gustav Stresemann. Internationally, Germany was also improving as immense economical recovery had taken place and there were no attempted putsches.

However, it can be argued that the so-called 'golden age' wasn't an appropriate name for this period as there were still many weaknesses, which later brought on problems for the Weimar Republic, such as economic and political instability. Therefore, it was better known as being a period of relative stability.

Economically, the mid to late 1920's were years of prosperity and contentment in Germany. It was receiving loans from the United States under the Dawes Plan. This allowed the German industry to develop to meet the increased demand for goods after the introduction of the new currency. In 1929 the exports had risen by 40% from 1925 levels. As more goods were produced, exports rose, which led to the labour force increasing and unemployment decreasing. Therefore, the working class benefited from this and trades unions won the right to an increase in wages. As a result of this people wee buying as many luxury goods as they had in 1913, which was a sign of increased prosperity.
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On the other hand, the Weimar Republic was also considered as being economically unstable between 1925-1929. This was because Germany had to rely on loans from the United States to help increase production and improve the German industry in order to pay back the reparations payments. Therefore, attracting foreign investment. However this could easily be withdrawn at any time. Some products such as coal were costing just as much to produce, as they were to sell. Between 1927-28 Germany was importing more than it was exporting. These deficits meant that it was losing a lot of money.
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