To what extent did the period 1924 - 1929 represent a golden age in Weimar Germany?

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To what extent did the period 1924 - 1929 represent a golden age in Weimar Germany?

The period 1924 – 1929 can be seen as one of recovery and stability with the economy recovering remarkably quickly from hyperinflation and no further political uprisings.  However if you look more closely, faults can be found in the political arena and flaws become apparent in the German economy.  The new culture of the Republic was also creating political splits.

The German economy had recovered extremely quickly from hyperinflation but only with the help of loans from America. These were short-term loans and came when the Dawes Plan was implemented in 1924. The loans were used for investment into industry and in the welfare state and were seen as attractive alternatives to high domestic tax. But these short-term loans were often used to finance long-term capital projects with the assumption that it would be easy to renew them as payments fell due.  This increased Germany’s vulnerability to Wall Street fluctuations as loans were often quickly recalled. Another problem in the German economy was the Cartel system of co-operation between businesses, which was supposed to enhance efficiency of industry. However the cartels carved up the market and fixed prices. Limited consumer demand also meant industry was focusing more on non-consumer industries and so rearmament was renewed. Furthermore, the cartels supported the political right wing and acted as an anti-progressive force  towards the Republic and socialist tendencies. When the government began imposing compulsory arbitration between companies and workers the number of strikes was reduced. However, cartels were also forced into taking a rigid and authoritarian stance so as not to concede too much to workers.

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This ‘Golden Age’ of the Weimar Republic also saw new innovative techniques in industry and Fordism seized the country. This mass production process was more efficient than in Britain and “by 1929 Germany had become the world’s 2nd industrial power behind United States” (Bookbinder). Despite this increased production there was no enlarged volume in foreign trade so, even with consumer demand filling part of gap, mass production was not entirely useful. Real wages and standard of living both rose in this ‘Golden’ age.  But the increased income only paid for the higher cost of the raised standard of living - ...

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