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Front Page  Titles (by Subject) Inflation and Political Crisis: Germany - Literature of Liberty, July/September 1979, vol. 2, No. 3
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Inflation and Political Crisis: Germany - Leonard P. Liggio, Literature of Liberty, July/September 1979, vol. 2, No. 3 [1979]Edition used:Literature of Liberty: A Review of Contemporary Liberal Thought was published first by the Cato Institute (1978-1979) and later by the Institute for Humane Studies (1980-1982) under the editorial direction of Leonard P. Liggio.
Part of: Literature of Liberty: A Review of Contemporary Liberal Thought, 20 vols. 19781-982
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Inflation and Political Crisis: Germany
“Inflation, Revaluation, and the Crisis of Middle-Class Politics: A Study in the Dissolution of the German Party System, 1923–1928.” Central European History 12 (June 1979): 143–168. The massive German inflation of the 1920s was one of the main factors responsible for the weakening of the party structure of the Weimar Republic. While both the onset of the 1929 depression and the rise of National Socialism greatly accelerated the dissolution of Germany's bourgeois parties, they did not begin the process but rather continued to intensify factors of disintegration which had been present since the foundation of the Weimar Republic. The established bourgeois parties, such as the German Democratic Party, the German People's Party, and the German National People's Party, proved unable to come up with effective programs to combat the inflation. Instead they tended to dissolve into their constituent social and economic factions. The inflation proved particularly onerous for those on fixed incomes such as pensioners and for members of the liberal professions. Political controversy over how to handle the inflation intensified after a Supreme Court decision of November, 1923 rejected the principle that “mark equals mark” applied to fulfillment of contracts. That is to say, debts could not be settled for their nominal monetary amount; the discount in value had to be considered. The Cabinet of Cancellor Wilhelm Marx split over how to respond to this decision. One party, headed by Hans Luther, wished to disregard it on the grounds that attempts to recalculate debts would impede economic recovery. Another group wanted to respect the court's decision. German society was also polarized by the issue. Various groups sprang up to agitate for measures in line with special economic interests of various sorts. As the inflation progressed, the position of the bourgeoisie worsened and the party structure became irreparably damaged. |
