Between 1924 and 1929 Germany’s economic recovery was all down to investments in German industry, and the business boom, which followed the investments (loans). After the Dawes plan (1924), Germany was not under as much severe pressure and economic strain of the reparations payments, and this along with the economic boost from American investments helped Germany to finance a long term industrial revolution which created mass industry in Germany. The financing of the industrial expansion included new facilities for the German people, and a variety of public works schemes including, apartment blocks, opera houses, and sports stadiums. All of which provided employment and an increase in popular support of the Weimar republic.
German industries made the most of the American influences, and industry doubled its overall production between 1924 and 1929. Companies made good use of the innovative techniques involved with ‘Fordism’ and established a very powerful, and technologically advanced industrial equilibrium. All of these dramatic changes in German industry created further more employment, and guaranteed an extensive investment in social and welfare services, as well as a rapid pay increase for German state employees. These factors of Industrial revolution and economic stability helped gain continued support from many in Germany for the Weimar republic, as all were in favour of the new stream of employment and the pay increases involved with industry, these factors lead to a welcome change in the standard of living for most Germans as they were able to enjoy the new prospect of stability.
However, this economic recovery was built upon foreign investments, and borrowed money. The recovery was based to excessively on these factors, and this left German industry, and prosperity in a very vulnerable position, as Germany would be affected by any major fluctuations in the American economy. The economy had bought about many short-term advantages but the economic recovery was very fragile, as it was ‘living on borrowed time, and borrowed money’. We must also realise that German economy cannot have been as successful due to it’s second crisis seen after the wall street crash in 1929, Germany was again crippled by the return of loans and repayments to America, even though their industry had doubled in its ‘Golden age’. So, German economic success relied heavily upon the American investments and loans.
As with the economic stability of Weimar Germany, we see the political system of the republic to be generally stable. From 1924 we see no real major threats or attempts to overthrow or to topple the Weimar Republic. This is in great comparison to the problems faced before 1924, politically, as we see many extremist uprisings e.g. 1919 The Sparticist movement, and the 1923 Munich Putsch. During the period of time between 1924 and 1929 the lack of extremist uprisings was evident. The Reichstag elections show clear decline in the amount of support for the extremist parties e.g. the seats held by the Nazi party declined from thirty-two to twelve. And general figures show that the amount of seats held by radical parties had fallen from 187 seats to 49, and moderate parties seats had increased from 237 to 285. This statistical evidence supports the confirmation of political stability. This deteriation of popular support for the extremist parties is also evident when we see the actions of the falling extremist parties, as they have to collaborate in order to gain more support.
However, these extremist parties were still around, plaguing their coalitions within the Reichstag, and the Republic did still suffer from these threats from the left and right wing political parties, who were biding their time.
By the beginning of 1929, the prospect of the survival of the Weimar republic looked ambiguous. The Weimar republic had improved the economy of Germany vastly, creating a stable and very effective economical state. The revolutionised economy had made way for the vast and new availability of jobs, and social benefits. The Republic had managed to satisfy the economic needs of the country, and had made a big improvement from the crisis it had been in during hyperinflation. Political stability was also in a very good way, with masses of gained support from the German people for the moderate parties who supported the Weimar Republic, and the decline in support for the Radical parties who had not been able to gain enough support to enable an uprising during 1924-1929. However, political and economical success lay upon two time bombs. Germany’s political state rested upon its great support, but radical parties still remained in large numbers, and the Weimar Republic had not yet under gone another extreme situation, so the extremist parties waited for a political disaster before their strike, and what better excuse than the Wall Street Crash. The Wall Street Crash was also the basis for the flaw in the German economy, as it was vulnerable to fluctuations in the American economy, this was the reason for the complete downfall of the Republic.
