Germany’s problems by 1929?
Explain your answer, using both interpretations and your knowledge of the historical
context [16 marks + 4 marks SPAG]
I agree somewhat with Interpretation 1, that Stresemann had largely solved the economic
problems facing the Weimar Republic by 1929. I do not agree fully that Stresemann had
solved all of Weimar Germany’s problems by 1929 as Interpretation 2 focuses on the
ongoing resentment that the German people had towards their government and the policies
made as Stresemann solved few of the social problems.
Interpretation 1 comments on Stresemann’s successes in relation to stabilising the
economy, improving the standard of living and the success of the Dawes loan for industrial
progression. Stresemann introduced a new currency, the Reichsmark, which helped to end
the period of hyperinflation as it allowed ‘the value of the currency’ to be ‘maintained’.
Economic security led to an increase in wages, ‘wages doubled’, and unemployment was at
a low. This encouraged foreign banks to loan money to German borrowers, which was used
to build new infrastructure and businesses. Industrial output doubled between 1923 and
1928, regaining ‘its technical and organisational lead’. ‘The Dawes’ Plan in 1924 had
Germany agreeing to pay as much as it could afford in reparations each year. This combined
with the Youngs Plan 1929, which reduced the total reparations debt from £6.6 billion to £2
billion and extended the repayment time by 59 years, meant that the government could
lower taxes, leading to an improvement in the standard of living for the German people and
an increase in the amount that could be invested by the government into public
infrastructure.
However, Stresemann did not solve some of the social problems in Weimar Germany, as
shown in Interpretation 2. Many German people still deeply resented the Treaty of
Versailles and were furious that Germany had joined the ‘League of Nations’ as they viewed
it solely as ‘the enforcer of Versailles’. Many thought that the ‘Locarno’ Pact was more
beneficial for ‘the French’ than themselves as it stated that Germany would not attack
France or Belgium and would peacefully settle disputes – it did not prevent France or
Belgium from attacking them. It also confirmed the borders that were dictated in the Treaty
of Versailles, officially giving away German land. Nationalists opposed ‘the Young Plan’ as it
meant that Germany’s finances were not fully in the government’s control and that the
reparation repayments of £50 million annually would be ongoing until 1988. The Kellog-
Briand Pact did not reverse any of the terms of the Treaty of Versailles, leaving Germany still
restricted with reparations, lost land and military constraints. In the German people’s eyes,
‘Stresemann…achieved little because Germany remained occupied and disarmed.’
Therefore I somewhat agree with both Interpretation 1 as I do not think that Stresemann
had solved all of the problems facing the Weimar Republic by 1929. He had been highly
successful dealing with the economic and political issues such as the reparations
repayments, foreign relations and stabilising the economy, however, he made little progress