Weimar Germany Instability: Economic Weaknesses
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How important were weaknesses in the economy as a reason for instability in Weimar Germany up to 1923? Explain your answer.
ESSAY
The weaknesses in the economy were an important factor in the instability experienced in Weimar Germany up to 1923. The aftermath of the First World War saw a significant drop in national income, war debt amounted to $40 billion, and there were food and fuel shortages. High unemployment rates immediately after the war added to the economic woes. The Treaty of Versailles further exacerbated the situation, as it took away 10% of German territory, all its colonies, and significant resources such as coal. The coal-rich Saarland was run by the League of Nations, and coal was also given to France. Additionally, reparations were set at £6.6 billion in 1921, leading to the depletion of German gold reserves and causing inflation. Failure to pay reparations in 1922 resulted in the occupation of the Ruhr by French and Belgian forces, halting production and trade. The government's decision to print money to pay striking workers then led to hyperinflation, resulting in a worthless currency, loss of pensions and savings, and increasing prices. This economic turmoil was further exacerbated by the introduction of bartering in many areas. Overall, these economic weaknesses were instrumental in contributing to instability in Weimar Germany.
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How important were weaknesses in the economy as a reason for instability in Weimar Germany up to 1923? Explain your answer. Yes First World War saw national income drop below pre-war levels; war debt at $40 billion; food and fuel shortages; high unemployment immediately after the war; Treaty of Versailles took 10% of German territory away and all of its colonies reducing trade and vital resources (40% of its coal); coal-rich Saarland run by LON and coal given to France; reparations set at £6.6 billion in 1921; used up German gold reserves and caused inflation; failure to pay in 1922 led to Ruhr occupation and halts in production and trade; printing of money to pay striking workers caused hyperinflation; led to worthless currency, loss of pensions and savings and increasing prices; bartering introduced in many areas, etc. No More important – political instability at end of war – "stab in the back" myth and November Criminals blamed for Armistice; social problems included 600000 widows and 1.5 million soldiers to find work for; chaos on streets in some cities like Berlin including Spartacist Uprising; impact of terms of treaty, Kapp Putsch; Munich Putsch (could also be a Yes argument and linked to economic problems); left-wing uprisings in Ruhr and Bavaria; use of freikorps and political violence and assassinations; weak constitution led to coalitions and rule by emergency decree by Ebert, etc.