For those asking about the Golden Years, here is a plan I made for the following question:
'How far do you agree that the period 1924-1929 can be described as one of economic and political stability?'
Political and economic stability:
-Stresemann's foreign policy: (shows improved foreign political stability)
Dawes plan 1924 which was significant in getting the republic out of hyperinflation, the Dawes plan consisted of three major points- acceptance of German reorganization of the German currency, the new Rentenmark was introduced and printing was strictly limited in order to prevent the type of hyperinflation that happened prior with the Reichsmark. Hjalmar Schacht was to be currency commissioner and the new currency was tied to mortgage bonds and agricultural assets in order to increase stability. The Reichsbank was also set up, under Allied supervision and finally the reparations payments were now to be made annually at a fixed price, over a longer period.
Locarno pact 1925 - Stresemann feared that the Anglo-French friendship could lead to a military alliance. In order to counter this concern,he proposed an international security pact for Germany's western frontiers.Both Britain and the USA backed the idea. The main points of the Locarno pact were: a mutual guarantee agreement accepted the Franco-German and Belgian-German borders. These terms were guaranteed by Britain and Italy, the demilitarization of the Rhineland was recognized as permanent and the arbitration treaties between Germany, Poland and Czechoslovakia agreed to settle future disputes peacefully.
Entrance into the League of Nations 1926 - Germany had originally been excluded from the League of Nations but was invited to join in 1926 following their improved relationship with the allies, the Locarno pact had a significant impact in their entrance into the league.
The Treaty of Berlin 1926 agreement with the Soviet Union to remain neutral in the event of an attack by a third party.
The Young Plan 1929 Stresemann's final diplomatic success -a further revision of the scheme of reparation payments, Germany now agreed to continue to pay reparations until 1988 and the total sum was reduced to £1850 million.
Evidence for domestic political stability:
Support for the extreme left and right parties decreased -the DNVP peaked in 1924 with 103 seats but decreased to 73 in 1928. The Nazis lost ground in both elections and were reduced to only 12 seats by 1928. The KPD remained below their performance of May 1924.
Support for the parties sympathetic to the Republic maintained their share of the vote - the SPD made substantial gains, winning 153 seats in 1928. Following the 1928 election a 'Grand Coalition' of the SPD,DDP DVP AND Centre parties was formed under Hermann Muller, the leader of the SPD. Over 60% of the Reichstag supported this coalition - finally the start of a stable democracy?
Social welfare policies - In 1927, a compulsory unemployment insurance covering 17 million workers was created, which was the largest scheme of its kind in the world.
Hindenburg Presidency 1925 - controversial as he had anti-socialist views (also used in argument against) or in-between argument. He remained loyal to the constitution and carried out his presidential duties with correctness. Those nationalists who had hoped that his election might lead to the restoration of the monarchy or the creation of a military-type regime were disappointed. It is argued that Hindenburg acted as a true substitute kaiser /Ersatz-kaiser seen by monarchists as fulfilling the role of sovereign. In this sense, Hindenburg gave Weimar some respectability in Conservative circles.
Evidence for economic stability during the 'Golden Years':
as mentioned under Stresemann's foreign policy - a new currency managed by Schacht was introduced, as well as the setting up of the Reichsbank greatly improved the prior issue of hyperinflation, finally having a currency that was relatively stable.
by 1928 pre-war production levels were reached - this was the result of the use of more efficient methods of production, particularly in coal-mining and steel manufacture and also because of increased investment.
Between 1925 and 1929, German exports rose by 40%, such economic progress brought social benefits as well. Hourly wage rates rose every year from 1924 to 1930 and by as much as 5-10% in 1927 and 1928.
The years 1924-1929 were not economically and politically stable:
evidence for political instability:
The coalition governments were evidently not stable, there had been 7 different governments in 7 years (1923-1930). This was due to the fact that no party had the majority of the vote meaning parties with conflicting ideology and political goals had to work together.
There was never any possibility of a coalition including both the SPD and the DNVP because the SPD believed in parliamentary democracy whereas the DNVP fundamentally rejected the Weimar political system. The Communists, KPD, remained totally isolated. A right-centre coalition of Centre,DVP and DNVP created a situation in which the parties tended to agree on domestic issues but disagree on foreign affairs. A broad coalition of SPD, DDP,DVP and Centre meant that these parties agreed on foreign policy, but differed on domestic issues.
Therefore, it was impossible to create a coalition with a parliamentary majority that could also consistently agree on both domestic and foreign policy.
As a result, towards the end of this period people were getting cynical of the political system and there was a rise in fringe parties.The KPD also began gaining votes towards the end.
The DNVP was in government in 1925 and 1927-1928 despite being a far right party with strong anti-Semitic orientation. Really a democratic government?
The Young Plan in particular, but other foreign policy would have created some political instability - the far right were opposed to this as well as the Locarno, Berlin treaty as they would have weakened Germany's strength as a nation. The Versailles Treaty and war guilt was still an issue.
Very important evidence to show this was the referendum held in Germany on 22 December 1929. It was a failed attempt to introduce a 'Law against the Enslavement of the German People'. The legislation, proposed by German nationalists, would formally renounce the Treaty of Versailles and make it a criminal offence for German officials to co-operate in the collecting of reparations. Although it was approved by 94.5% of those who voted, voter turnout was just 14.9%, well below the 50% necessary for it to pass.
Hindenburg Presidency 1925 - It is believed Hindenburg had no real sympathy for the Republic or its values. Those around him were mainly made up of anti-republican figures, many of them from the military. He preferred to include the DNVP in government and, if possible, to exclude the SPD. From the start, Hindenburg's view was that the government should move towards the right, although it was really only after 1929 that the serious implications of his outlook became fully apparent for Weimar democracy.
evidence for economic instability:
The Dawes plan - loans from the US provided short term economic benefits but were never ideal - as seen in the Wall Street Crash that occurred in 1929.
Unemployment never fell below 1.3 million in this period.And even before the effects of America's financial crisis began to be felt, the number of unemployed workers averaged 1.9 million in 1929.
Economic growth was uneven - in 1926 production actually declined. In overseas trade, the value of imports always exceeded that of exports.
Agriculture - grain production was still only 3/4 of its 1913 figure, and farmers, many of whom were in debt, faced falling incomes.
Germany also faced fundamental economic problems - they relied on its ability to export to achieve growth but world trade had declined and the loss of valuable resources in Alsace-Lorraine and Silesia due to the Treaty of Versailles proved significant. Fall in world prices affected agriculture. Changing population meant there were more school leavers, meaning unemployment was naturally likely to increase. Savings and investment were discouraged,savers had lost a great deal of money in the Great Inflation acting as a disincentive for future investment.Government budget deficit also increasing - unstable long term economic growth due to the level of government expenditure.
Conclusion: When looking at the golden years in isolation it is clear that it is not economically or politically stable, it just appeared to be the case when comparing this period to the previous 5 years and next 5 years in which instability was extreme. Deceptively stable?