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How Far Did The Weimar Republic Recover Under Stresemann Essay

1060 Words5 Pages

In august 1923 Gustav Stresemann became Chancellor of Germany and foreign minister. Stresemann went along the way in resolving the problems of the Weimar Republic. Stresemann promised to carry on paying reparations and to stop passive resistance to help solve the problem of the French invasion of Ruhr. Stresemann also solved hyperinflation as goods were being produced. Gustav introduced a new currency and changed the useless German marks to a new currency called the Rentenmark. This solved the problem of the currency losing value and hyperinflation. He agreed to the Dawes plan. This allowed the Germans to start paying off their reparations and spread their payments over a longer time. Stresemann also agreed on the Young plan in 1929 which reduced …show more content…

Under the Dawes plan in 1924 , America would lent 800 gold million marks to Germany to be invested in factories and in the long term provide huge numbers of jobs and further investment from abroad. The Dawes plan also spread the reparation payments to a level which Germany could afford. By 1928 Germany had finally achieved the same levels of production a before the war. Stresemann increased the wages for industrial workers and state employees. This typically meant that there was a higher standard of living for many Germans. Stresemann negotiated the Young plan in 1929. This is linked to the fact that Germany was a part of the league of nations in 1926 which usually meant that Stresemann was able to negotiate with the allies more peacefully. This would increased the time limit Germany had to pay back the reparations. Stresemann who agreed to all these acts helped to get Germany back on track economically and bring in a brighter future. However, this economic boom was precarious. The US loans could be called at short notice which could cause destruction to the German economy.Unemployement was an issue. 6 percent of the working population was unemployed by 1928. Small businesses, shopkeepers both were threatened by large department stores and businesses. Most of the time, peasant farmers didn't have enough demand for their food so they usually couldn't keep up with their

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