Continuing political
and economic problems

Political Problems

• Due to political representation, extremist parties, such as the Nazis, were able to get seats in the Reichstag.

• The Locarno Treaty may have addressed many of Germany’s borders, however, its borders with countries in Eastern Europe had not been settled.

Economic Problems

• Farmers' wages fell dramatically as the agricultural industry did not improve.

• The Dawes Plan American Loans left the German Economy hanging by a very thin thread as they could be recalled at any time.

• Germany was losing money each year as it was spending more money on importing products than it was earning through exports.

• There was quite a lot of poverty as the unemployment rate rose to 1.9 million. This not only meant individuals did not earn money, but it meant Germany was earning less.

• The Government expenditure was higher than the amount received in taxes.