Why was the Weimar Republic (1919-1933) not an economically prosperous government?

The Wiemar Republic was not economically prosperous because in 1923 it experienced hyperinflation. This is when inflation reaches over 11% but in this case inflation got so high money was practically worthless. People were taking their wages home in wheel barrows and couldn't afford to feed their families. The years after 1924 when a new currency were brought in were more stable but by no means prosperous, the economy relied on american loans following the Dawes plan of 1924 and even that was strictly to pay for structural improvements. Also in 1929 the Wall Street Crash happened in america leading them to demand repayment of the loans and destroying the German economy. This crash led to a fall in German exports of 61% and a collapse of the German banking system. Unemployment skyrocketed as businesses were shredding labour to recover costs and this continued up until 1933, made worse by the harsh economic policies of Chancellour. Heinrich Bruning. Therefore should argue the Wiemar republic was not economically prosperous- it saw two colossal economic disasters in it's years and the so called 'golden years' were only golden due to american loans that would eventually cause another economic crash .

AE
Answered by Anna E. History tutor

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