Mary Fulbrook

A History of Germany 1918 - 2020


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World War – was at first organized only at the local level. After the return of the war veteran Ernst Röhm from Bolivia to head the organization in 1930, the SA remained somewhat unruly and, in conventional political terms, more radical than Hitler’s conception of Nazi ideology was to be. Nor were all Nazi leaders united on a clearly definable ‘ideology’ in any case. An important figure with ideas somewhat different from those of Hitler was Gregor Strasser, whose role in Nazi party organization was strengthened in 1925 when Hitler was banned from making speeches in public. Strasser, who had considerable organizational skills, played a key role in spreading the Nazi party organization across broad areas of Germany, beyond the original Nazi heartland in Bavaria. In some areas, particularly in northwest Germany, the NSDAP had a more ‘revolutionary’ or radical flavour.

      Economic Crises and the Collapse of Democracy

      The Weimar Republic had suffered since its inception from major economic problems. The means of financing the First World War – through loans and bonds rather than taxes – had laid the foundations for postwar inflation, which had been fuelled and exacerbated by government policies in connection with reparations in 1922–3. Even after the stabilization of the currency in 1923–4 and the revision of reparations arrangements with the Dawes Plan, the Weimar economy was far from strong. For one thing, it was heavily reliant on short-term loans from abroad. These could rapidly be withdrawn, with far-reaching consequences – as indeed occurred after the Wall Street Crash of October 1929. For another, as Harold James has put it, ‘Weimar’s economy suffered from an inherent instability, and like any unstable structure required only a relatively small push to bring down the whole structure’.4 On both the industrial and agrarian fronts there were difficulties. Workers were heavily reliant on state arbitration to back wage claims that were disputed by employers, and, on some interpretations, relatively high labour costs contributed to the problems of the Weimar economy. Whatever one’s view on the question of whether wages were ‘too high’ in an era characterized by ‘Taylorism’ and ‘Fordism’ (the attempted rationalization of labour and enhanced productivity through the introduction of American time-and-motion studies, assembly-line methods and the like), distributional struggles certainly contributed to Weimar’s political problems. Nor was all well on the agricultural front, and the difficulties in the agrarian sphere were to play a major role in the rise of Hitler. From 1924, when the agricultural protectionism introduced at the beginning of the war came to an end, there was a need for rationalization in agriculture. From the mid-1920s onwards, agricultural indebtedness increased, and every year there were greater numbers of bankrupt estates: a heightened political radicalism among farmers resulted. Agrarian elites also came to bring considerable pressure to bear on President Hindenburg – himself a Junker with experience of indebtedness – in the final intrigues leading to the appointment of Hitler as chancellor.

      The Grand Coalition of 1928–30, including the SPD, led by Chancellor Hermann Müller, was the last genuinely parliamentary government of Weimar Germany. Plans had already been made for its replacement by a more authoritarian alternative – essentially presidential rule through a chancellor and cabinet lacking majority support in Parliament – several weeks before its actual collapse. Having survived earlier crises, the Müller administration fell over the issue of unemployment insurance in the wider context of economic recession and rising unemployment. In October 1929 the Wall Street Crash prompted the withdrawal of American loans from Germany, and heralded a phenomenal rise in bankruptcies and unemployment in the following three years. With rising numbers out of work, unemployment insurance could no longer be paid at the level decreed in the unemployment insurance legislation of July 1927. Müller’s coalition government was unable to reach agreement on the issue of whether to raise contributions or lower the level of benefits. Foundering on this issue, the last cabinet of the Weimar Republic to rely on parliamentary support was replaced by a presidential cabinet under Chancellor Heinrich Brüning, which, lacking majority support in Parliament, was to rule by presidential decree.