Was The Weimar Republic A Sick Economy

Essay:
Weimar was 'a sick economy' unable to carry out redistribution of wealth and resources. To what extent do you agree with this statement?
The Weimar Republic was a period in German history which occurred between 1919 and 1933 which was when the government was a democratic republic governed by a constitution. The end of the Weimar Republic occurred when Adolf Hitler took control. Under the Weimar constitution, Germany was divided into 19 different states. Many people had equal rights, because all citizens had the right to vote for members of the Reichstag of for the German Parliament and for their president. The president’s job was to appoint a chancellor. Many historians will agree that the Weimar Republic was a brilliant idea and on
Stresemann had temporarily made strong political and economic nations. But all of Stresemann’s political stability was bought at a price. The price was the subject of Germany to Western financiers and more especially to New York Stock Exchange buisnesses. Germany was humiliated by foreign creditors because it was under constant supervision and this resulted in financial slavery. Another problem that Germany encountered was that its fate depended on American prosperity. Germany’s ability to pay their reparations depended on its acquirement of foreign loans. So if Germany was to stop payment at any point, its international credit would collapse; and with it the whole political system which Stresemann had built up. On the 24th of October (called “Black Thursday”) there was panic selling on the New York stock exchange reacting to the business crisis that was taking place in America. Thus when the stock market collapsed on Wall Street on Tuesday 29 October 1929 (Black Tuesday) it resulted in disastrous effects for many financial markets. The German economy was especially vulnerable because its economy was built of mainly foreign capital which was generally loans from the United States of America and it was very dependent on foreign trade. When the USA asked for its loan repayments from Germany the world market for Germany exports ceased. As production levels fell, many German workers were let go from their jobs. There were approximately two and a half million people unemployed within Germany at this time. Along with this banks were unable to keep up with the money that they were losing and savings accounts were wiped out. Inflation followed which ruined the lives of many Germans and destroyed the