Political confrontation over these issues was bound to erupt under less favorable circumstances. The social upheaval and redistribution of income caused by the war and subsequent demobiliza tion abundantly refueled the controversies. Those controversies were, however, strongly connected to the political structure of the recently unified empire.
The party that eventfully took control of government during this volatile time was the based of conflicted coalition of the elite bousaises and the largo interested liberals. This Certer left party was forced to comprises on budgetary issue with labor party always wanting increase worker benefits through government spending the capitalist unwilling to raise capital. The result was defect spending that over extended the already abundant supply of German capital. Riel and Schram argue that the Reichstag had the responsibility to make hard sacrifices but the awkward coalition prevented long term policy from forming. .
The Reichstag, could not exercise any effective influence on politics (nor on economics) the Weimar system of republican, democratic rule appealed only to the majority of the SPD and the bourgeois Catholic and left liberal parties. Not surprisingly, the new republic was unable to resolve such an extreme polarization in the short term. During the inflationary period at this time, the government even refrained from a highly necessary increase in taxation. It was afraid to lose still more popular support. ( p75).
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Another intresting artcle that Niall make is the Weimar government once experiencing inflation decided not curtail the deprecation of the mark is that would strengthen the assets of property owners and nullify debt. During the Ruin occupation Weimar's economist became increasing frustrated by the Allied demand for speculated payments and theorized that inflation would allow them repay not only the foreign debt owed in reparations but also US private loans they after the war.