4. recovery or illusion of recovery

This page considers whether the apparent political and economic recovery that Weimar enjoyed between 1924-1929 was genuine or in fact an illusion.

1. The Stresemann era: domestic and foreign policy Recovery or illusion of recovery?

2. The Stresemann era: domestic and foreign policy Many accounts of Weimar Germany from 1924-1929 describe a ‘golden age’ , part of the story of the Roaring Twenties . Certainly compared with the 1923 crisis Weimar’s economy improved, however the extent to which this was a real recovery causes historical debate.

3. The Stresemann era : domestic and foreign policy There were certainly strengths in the Weimar economy from 1924-1929 . During this period, average wages consistently increased (in actual terms, real terms and after tax). In addition (until 1928 ) the number of strike days fell, suggesting improving worker satisfaction.

4. The Stresemann era: domestic and foreign policy Industrial production also increased substantially, with industry, coal and steel seeing improvements (albeit still below 1913 levels). The Dawes Plan had helped too. Until 1927 , reparation payments were lower than 1923 as a percentage of Germany’s GDP.

5. The Stresemann era : domestic and foreign policy However there is also a range of evidence that Weimar was in fact greatly struggling and being kept afloat simply by loans from the USA. From 1924 to 1929 , average unemployment increased (especially in 1926 ). Germany’s economy growth also fell behind Britain, France and the USA.

6. The Stresemann era: domestic and foreign policy Certain groups in Germany were facing particular difficulties. Farmers saw price falls from 1927 , costing them profits and contributing to rising unemployment . The cost of welfare benefits increased too, and even higher taxes could stop a growing budget deficit .

7. The Stresemann era : domestic and foreign policy The middle classes also had economic concerns. Many of them disliked paying higher taxes at the same time as welfare benefits increased. Also the success of trade unions meant that some saw a reduction in the economic advantage they had over working class people.

8. The Stresemann era: domestic and foreign policy Conservatives blamed Weimar for economic problems, partly linking this to Versailles problems but also the costs of a growing welfare state. Some left-wingers blamed the elites for not investing more in their companies, or the government for not using subsidies effectively.

9. The Stresemann era: domestic and foreign policy Historians’ views Paul Bookbinder: “By 1929 Germany had become the world’s second industrial power behind the United States. Real wages rose, and the standard of living for many increased.” William Carr: The extent of the boom “has been exaggerated and superficial prosperity and growing international structure masked a chronic state of political weakness .” Ruth Henig: By 1928 there was “disillusionment with the Republic” among almost all groups. Stephen Lee: The stability of the Weimar economy and political system “was partly illusory.”