The Stability Of The Economy Of 1924-9 For Germany

The years of 1924-9 for Germany were years of deceptive stability. Stability refers to a well established and firm state. In this context, stability within Germany would be a firmly established political system, a strong economy, no threats from external forces and no major divisions which would have massive implications on Germany. Germany appeared to be in a state of economic recovery but had concealed the ulterior fundamental problems that continued to exist. Germany’s economy as an entirety and parts of German society were still suffering. There was an increase of stability in law and order but there was no strengthening of the political structure of parliamentary democracy. Additionally, German society was extremely divided because of

The Dawes Plan had provided Germany large loans to cover their deficit. This over-reliance on international loans undermined Germany’s economy significantly. It was dependent on foreign powers rather than self-preservation which had implications. These implications had led to another financial crisis for these were short term loans that could be demanded to be paid back instantly. Additionally, according to statistics exports rose by 40% in 1925-9. However, economic growth was uneven in 1926 and declined. Moreover, imports had exceeded exports. Exports had been difficult to export because of the increase of tariffs imposed by other countries. Imports exceeding exports conveyed that the German economy was not producing a sufficient amount of money that they are expected to in order to maintain a stable economy. Additionally, there was an extensive unemployment and salary reduction problem. 1.9 million people were unemployed and the agricultural industry had been in decline. The decline of the agricultural industry led to salaries below the 44% national average. The reduction of salaries had severe consequences on the farmers who were already suffering from debts. This had a wide scale impact on German society for farmers covering 1/3 of the German population. This period had been superficial stability due to the German economy’s dependence on foreign loans, high unemployment rates and economic instability

The new era of toleration had arrived in Germany. German film industry was the most advanced in Europe. There was a powerful and strong impression of the new Weimar culture between the traditional one. The new functionalism within Germany received a lot of international and domestic attention. However, this new culture had polarized the society within Germany.Many conservatives clashed with the liberalists of Germany. The society had become extremely divided; people were appalled by the modern mass culture. An international perspective had seen the emergence of new functionalism to be a paradigm for the media world but within that emergence of new functionalism came divisions within German society. These divisions within society had implications of the capabilities of advancing the country which caused severe instability socially and culturally.

The compilation of the unstable factors politically, economically and socially proved that these years were deceptive stability. The German economy relied on foreign loans which had major consequences for the future. The Weimar government continued through the years with no major attempt to strengthen the government.The society of Germany had been extremely divided. The accumulation of all these important systems in a country led to the decline of