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Economic development in Germany after the First Word War (between 1919 and 1933) - Essay Example

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Germany’s economy particularly writhed following the First World War in comparison to some other countries like France and the United Kingdom who recuperated relatively fast. This was because of the treaty known as the Treaty of Versailles which obligated Germany to emolument…
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Economic development in Germany after the First Word War (between 1919 and 1933)
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Economic development in Germany after the First Word War (between 1919 and 1933)

Download file to see previous pages... Instantaneously after the First World War, Germany began making efforts of recuperating from their effects of war through social expenditure. The Germany government commenced projects that involved enhancing the transport sector, starting gas works and also trying to revolutionize their power plants. This was an attempt to lessen the escalation in the rate of joblessness which was becoming worse to the country’s economy (Huefner & Woergoetter, 2008). The working class in German got greater political and social representation in the society. Those people, who came from humble backgrounds, for example those in the army, were promoted in their jobs and they started earning better wages.
There was equally an explosion in trade unionism in German. The socialist and trade union movements in Germany became much stronger than they were in 1914. These unions no longer concentrated in banning strikes among their employees but they also adjudicated for peace so that there would be no repeat of the war that had resulted in the loss of millions of families as well as leaving most of the men who had taken part in the war wounded.
The social spending subsequently started growing with the government using 65 marks for each inhabitant by 1925 as compared to the expenditure of 20.5 marks in the year 1913. By the year 1929, the government’s expenses were more than one hundred marks per inhabitant. The German government took control over banks and they literally controlled the money that flowed in and out of the banks. The government also took control over foreign trade as well as the manufacture and sale of food. The production and sale of armaments was equally put under the government control. Maximum prices for various goods were set by the government so as to raise more revenue to meet its ever increasing demands. Apart from all these, the franchise enterprise was ...Download file to see next pagesRead More
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