15 - Economic Policies Flashcards
Did Hitler have an economic plan when he became chancellor?
No but he did have clear aims
Why did Hitler want to boost the economic situation in Germany
Knew that boasting the economic situation would boost the Nazi party’s power and popularity
What were the key aims of NAzi economic policy
Create a economy capable of sustaining a major rearmament programme and geared to the needs of future war
Reduced unemployment
Continue recovery from great depression
What was unemployment in jan 1933
6 million
What was unemployment in jan 1935
2.9 million
What was unemployment in jan 1939
302,000
What were the methods used to reduce unemployment
Public work schemes started by Von Papen and Bruning were extended
Building barracks, motorways, water conservation schemes
Regulations to use labour not machines
Arguments that unemployment didnt actually decarease
Women no longer included in the statistics
Unemployed were forced into the work given by the government or be classsed as ‘work shy’ and put ina. Concentration camp
Jews lost their citizenship in. 1935 and were therefore not included in the figures
Many young men removed from the figure when conscription was introduced in 1935
In what ways did the Volkswagen project reflect Nazi ideology
‘Peoples car’
Announcement brought great happiness and surprise
Cemented concept of volksmeinschaft
Was new and exciting - foreshadowing a future
Why was the four year plan created in 1936
HItlers initial policies had been succesful with confidence restored and unemployment reduced.
What were the aims of the 1936 four year plan
Ensure Germany was ready for war within four years
Make germany as self sufficient as possible in food and industrial production, a policy known as autarky
What was autarky
Making Germany as self sufficient as possible in food and industrial production
Why did Germany want to achieve autarky
So they didnt have to depend on other countries
How successful was autarky in 1939
Initially achieved by increasing Germany’s production of key commodities such as iron and food
They still depended on foreign imports for 1/3 of its raw materials especially iron ore, oil and rubber.
What was Goering’s role in the economy
WHen Hitler became impatient with Schacht’s cautious attitude her put Goering in charge of the new organisation; the Office of the four year plan.
This made Goering a major economic figure in Germany.
Evidence that there was an economic miracle
The reduction in unemployment.
29.9% in 1932 to 0.5% in 1939
Real wages increased by index numbers from 88.5 in 1932 to 111 in 1940
Peasants protected from rising industrial prices and falling income from goods
Production increased
Evidence that there wasn’t an economic miracle
Many were put in mundance work that didnt match their skills or ability
By 1939 oil production was 40% of what they had hoped for
Workers lost freedoms
Enforcements were harsh
Economy was chaotic swung low foreign currency reserves, in a deficit
Why wa style National Labour service so harsh?
They wrote military style uniforms and lived in camps near to where they were working and received only what we would term pocket money
What did the government did in teh agriculture industry
Took some early measures to help peasants, with higher prices and cancellation of some debts.
However wee more concerned with larger more efficient estates who food production was vital for autarky
Why did the government care about agriculture
Necessary in the quest for a more self sufficient Germany
Evidence that governments agriculture policy was succesful
Intially protected farmers with controlled prices
Arable farmers benefited from subsidies
1928-38 production increased
How did the four year plan help the agriculture industry
Reduced fertiliser prices, gave subsidies for mechanisation and grants for new cultivated land
Evidence the regime didnt help agriculture industry
Later prices went below market levels and were increasingly resented
Livestock farmers were later hit by shortages and the high cost of fodder
Farmers harmed by a flight for extra land and extra labour had to be drafted in
What did the government do to industry
Bought under state supervision in the interests of national unity.
The state controlled most resources but industry remained largely privately owned
Large firms had to join cartels and they expanded to meet government requirements
What did hitler want to focus on regarding industry
Tanks, planes and heavy industry
Evidence the government failed to help industry
Over 3000,000 small businesses unable to compete went bankrupt
What did the Nazis aim for transport
New technology in transport would symbolise. New modern germany
Emphasis on technology like planes
Would help them prepare them for war
The nazis saw the need fo trilways for their future plans to transfer Jews and troops as well as supplies
Evidence the Nazis were successful in improving transport
Over 2,000 miles of roads were created by 1938
Roads boosted employment and stimulated car production
Progression had military value, showing the world Germanys developments (prestige)
What did the government do to help trade
Less of a focus on trade, more focus on autarky
Imports controlled by the government as well as foreign exchange due to severe shortages
Was there growth regarding trade?
No major growth in foreign trade in the 1930’s, Schacht’s deals were replaced with a focus on autarky
How was finance raised under the government?
Increasing taxes and various forms of credit
What was the governments economic policy?
High taxation and High expenditure
Spent on public investment, public works, growing welfare provision and expanding the costs of the military
Impact of nazi economic policy’s on big businesses
Subsidies were given to large companies to employ more worker
Those businesses involved in the rearment indsutry did particuarly well whilst smaller traders did worse
What was the situation of German agriculture in 1933?
In a depressed state
Many farmers felt alienated during the Weimar Republic by governments during teh Weimar Republic by governments who favoured urban classes
Hwo did teh Nazi’s view farmers
Glorified them as a key group
The Nazi ‘blood and soil’ idoelogy idolised farmers as the ‘life spring’ of the nation.
For the Nazis the pure aryan peasants was key to the nations racial health and the finest upholder of traditional moral values
How did farmers incomes change 1933-36
Increased by 41%
What was the impact of the Reich Food estate
Created a huge bureaucracy enforcing petty rules much resented by farmers, its controls on the sale of produce and the limitations imposed on the farmers choice of crops were highly unpopular due to the restriction of freedom
Failures of the economic policies in helping farmers
Money allocated to clear farmers debts mainly went to larger firms
Strict wage controls meant the gap between rural and urban wages widened
The regimes preparation for war always took priority over farmers interests
The reich food estate created bureaucracy
Statistical evidence that the regime failed to help farmers
Between 1933 and 1939 1.5 million agricultural labourers moved to towns and cities to find work
Did the economic policies help families?
Some benefits were of real assistance to poor families
The volskawagen, though not taking place until after WWII created a lot of excitement for families
What happened to small traders under Nazi economic policies
Did much worse as bigger businesses boomed
The nazis never kept their promises to help smaller businesses compete agaisnt larger ones
How did the Nazis alienate workers
Removing their political representation and their independent unions
Why was it important for the nazis to win over wokers
To achieve their ambitions of autarky and rearment
What was the KDF
‘Strength through joy’
Created to organise workers leisure time, offering subsidised ‘package holidays’.
What did the Reich Labour service (RAD) do?
Set up to improve working conditions in factories and provide a greater range of amenities such as sports grounds
Meant all men aged 18-25 had to do six months labour
What group was leats impressed with Hitler’s economic miracle?
The working class
How much were workers wages raised by 1939
1%
