15.Economic Policies (S4)

Question 1

What is ‘economic autarky’?

Answer 1

The economic independence or self- sufficiently.

Question 2

Name 3 factors under Schacht which helped the regime stimulate economic recovery?

Answer 2

• Pumping money into the economy to build homes and autobahns (motorways)
• Giving tax concessions and grants to particular groups
• Giving subsidies to private firms to encourage them to take on more workers
• Putting controls on wages and prices to control inflation
• Introducing the ‘New Plan’ to control Germany’s foreign trade
• Taking the first steps towards rearmament, using an ingenious methods for financing the expenditure: The Mefo Bill

Question 3

Name 2 ways the Nazis tried to reduce unemployment (battle for work)?

Answer 3

• Spent money on building autobahns and public buildings
• The Reich Labour service was introduced in 1935 for young, unemployed men to train and receive a small salary
• Reintroduced conscription in 1935

Question 4

What were the genius Mefo bills and how did were they work?

Answer 4

Companies could be paid with a ‘guaranteed promise’ and (after a delay) when they chose to exchange the bill for real money, they made a small amount of interest. This gave the Nazis time to re-arm as they didn’t have to ‘pay’ for the service right away.

Question 5

What was the conflict of priorities known as between the Nazis and Workers?

Answer 5

‘Guns or butter’

Question 6

What was Goering’s 4 year plan?

Answer 6

The aim to make Germany ready for war within 4 years.

Question 7

Was Goering a good choice of Minister for Economics by Hitler?

Answer 7

No. He didn’t really understand the economy very well and he was more concerned in making his Goering Steelworks business profit for himself.

Question 8

Then why did Hitler choose him?

Answer 8

Hitler liked him and he was a war hero.

Question 9

How did the Nazis creatively prevent the shortage of raw materials? Give 2 examples.

Answer 9

• Collected scrap metal form people’s homes/ public spaces
• Park railing and lampposts were removed and melted down
• Pots and pans were collected by the Hitler Youth

Question 10

Did they achieve their goal of the 4 Year Plan?

Answer 10

No, in 1939, Germany still imported one third of its raw materials.

Question 11

What propaganda tools did the Nazis use to encourage workers? Give 3 examples.

Answer 11

• Advertising campaigns for products such as the ‘people’s receiver’ (radio) and the ‘people’s car’ (Volkswagon)
• Cruise ship and other holidays to the best workers/ managers
• Paid time off to compete in company sports teams
• Free shows (e.g. dance/ music) for workforces and their families

Question 12

Why was there a flaw in the statistics stating that unemployment had decreased? Give 2 examples.

Answer 12

• Economic recovery had actually begun before the Nazis took power in Jan 1933.
• The reduction of employment may have been due to policies forcing women to leave their jobs
• The DAF wasn’t really a ‘job’ but whilst in it you didn’t count as unemployed
• The reintroduction of conscription in 1935, meant that young men were technically employed
• Jews, women and other undesirables were excluded from the workforce

Question 13

Name a food item that declined in consumption and an item that increased.

Answer 13

High values items decreased: E.g. Meat, fruit and eggs

Cheaper foods increased: E.g. Rye Bread and potatoes