How significant was Stresemann in the recovery of Germany after 1923? Explain your answer.
Gustav Stresemann became Chancellor of Germany in 1923 when Germany was in a state of
chaos, suffering from hyperinflation and invasion by the French in the Ruhr. Stresemann was
important in the recovery of Germany after 1923 by overcoming the Ruhr crisis, stabilizing
politics in Germany, and creating greater acceptance in the international community. On the
other hand, these achievements were reliant on US loans and the economy did not recover, and
politics was still a problem It can be seen that Stresemann was not significant in the recovery of
Germany after 1923.
One reason Stresseman was significant in Germany’s recovery is because he overcame the Ruhr
crisis. Evidence to support this includes that by 1928, Germany had returned to pre-war
production levels. In 1923, hyperinflation through the Ruhr crisis caused severe damage to the
economy, and at this time Stresseman took charge of the government. Stresseman had fixed these
problems through the Dawes plan, where he took loans from America to support German
businesses and infrastructure, as well as increasing international trade. Another important aspect
of the Dawes plan is through reparations payments, in which Germany would pay more in years
which the economy was better, and less in which it was in recession. This not only strengthened
a German economy, but also improved international relations through trade.
The state of politics in Germany also improved. Evidence to support this is that there were no
attempted revolutions by other parties after 1923, when Stresseman took over. As Stresseman
was right wing, he was generally more supported as he had the support of nationalists. In
addition, he was a better politician than Ebert, who led the former government. As a result, by
improving Germany’s situation and also due to his skills, he was able to gain more support from
the general public, which led to a stable political environment after 1923.
Lastly, Stresseman made large changes in foreign policy, most notably through the Locarno
treaties. This was an agreement between France, Germany, and Belgium to maintain Germany’s
Western borders. This improved relations with the aforementioned countries, and eventually led
to Germany being accepted into the League of Nations in 1926. There, he was able to make
further strides into improving Germany’s economic state through renegotiating reparations. As a
result, Stresseman was able to change some of the Treaty of Versailles as he regained trust
within foreign countries.
However, one shortcoming of Stresseman is that he caused over-reliance on American loans.
Evidence to support this is that he took 800 million marks in loans to recover a Germany after
hyperinflation. This was an extremely risky strategy, as the Americans could recall these loans or
ask for repayment at any time, even if Germany was not ready to pay for them. This was the case
during the 1929 Depression, where American bankers and businessmen that lost huge sums of
money asked for the loaned money back. As a result, businesses went bankrupt, which meant
people lost jobs, leading to an eventual rise in unemployment. This put them in a situation
potential worse than before Stresseman took charge. However, this was out of control for
Stresseman as he had passed away before the depression and was not there to control the
damage.
Another reason Stresseman was not significant in the recovery of Germany after 1923 was that
although he might have solved some of Germany’s economic problems, new ones arised with his
solutions. Evidence to support this includes that inequality and unemployment increased up to
6%. As Stresseman poured so much money into industry, the people who profited from this were
the factory owners and landowners, who were mostly already wealthy. Meanwhile, the middle
and lower class suffered from the consequences. Farmers did not have sufficient demand for
their goods, which meant they did not have enough money to pay back their loans. Small
business owners also were pushed out by large department store owners, who took a significant
amount of their customers. As a result, these lower and middle class people started to feel bitter
towards the government as they did not improve their situation. On the other hand, lower income
factory workers were able to benefit from investment into industry which helped their economic
situation.
Although Stresseman did have some shortcomings and could not aid everyone during his time in
charge, he did significantly more than any government had previously done. By overall
improving Germany’s economic situation, he was able to help most people, even if it was reliant
on American loans. His shortcomings were a result of uncontrollable factors, such as the stock
market crash. Had he not done anything after the catastrophe of hyperinflation, the effects of the
Great Depression could have been significantly worse.