Stresemann was chancellor and foreign minister in August 1923.
Stresemann's first significant policy measures were undertaken to regain control over money- he introduced the Rentenmark in Oct 1923 and the various forms of 'emergency money' were banned.
The govt also used emergency decrees to control rents, wages and prices, which also helped to stabilise the currency.
The recovery of business: Big businesses were more able to ride out economic problems. In the early 1920s, however, many small businesses collapsed; in 192; there were more bankruptcies than in the pervious five years altogether.
Trade recovery: At first it was difficult for Germany to establish trade links. Germany suffered from heavier tariffs initially as part of the reaction of many other countries to Germany's part in the war.
- But with Germany's admission to the League of Nations; German exports were back to their 1913 levels of ten billion marks by 1926 and by 1929 exports were 34% higher than in 1913.
Agriculture: Framing was still a significant employer in the 1920s; between a third and a quarter of all workers were agricultural workers.
- Many small farmers were heavily in debt and could not afford to pay the interest on their loans or even, in some cases, their taxes.
Govt spending: The new economy was built on foreign loans, many of them short term.
- As well as borrowing heavily, the govt also spent heavily. It subsided grain production, it subsided industry and it spent heavily on social welfare, providing housing and benefits for the poorest.
The Great Depression 1929-32:
- Unemployment rose and wages fell by 20-30%.
- The govt failed to cope with the Depression because it could not make decisions or act quickly
- The coalition collapsed and was replaced in 1930 by one led by Chancellor Bruning, who suggested cuts in govt spending, wage cuts and higher taxes.
- One of the few benefits of his policies was that, as Germany's depression deepened, it was clear to all countries that it would not be able to meet any reparation payments or even repay loans from other countries.
- His policies in the years 1930-32 did not work; they simply deepened there recession.
- Industrial production fell, prices fell and exports fell, all by around 50%. Unemployment rose to its highest level ever in 1932.
Changing living standards 1918-32:
- During ww1 there were several shortages
- Allied blockages of ports stopped supplies getting into Germany.
- Food shortages meant 'alternative foods' such as ,K-Brit' bread made from potatoes, oats and sometimes even straw, were common.
- Malnutrition was common
- The Weimar govt inherited a country where the standard of living, especially for the poor, was very low.
- The Weimar govt provided benefits for the poorest. It regulated pensions.
- Many families lived in cramped housing with shared toilets and washing facilities
- Skilled workers and low- level clerical workers also experienced rising unemployment and many ended up spending all of their saving and having to claim benefit.
- Many ended up losing their business and sometime their homes too