16 Economic Developments

Question 1

What were the main stages of the impact of the Depression?

Answer 1

Bruning and the impact of the Wall Street Crash
The July 1931 banking crisis
The Depression under Papen and Schleicher

Question 2

What was the impact of The Wall Street Crash under Bruning?

Answer 2

1. Us loans and investments stopped
2. Export markets disappeared, bankruptcy, prices and wages fell.
3. Mounting unemployment and falling tax produced a 1,700 million mark budget deficit by the end of 1929

Question 3

When was the Wall Street Crash?

Answer 3

October 1929

Question 4

What was Bruning reaction to balance payments?

Answer 4

Tried to implement Deflation and austerity measures.
Cut govt spending
Tried to balance their spending with income tax

Question 5

What was the impact of burnings methods?

Answer 5

Unemployment was high, increasing demand for unemployment benefits, forcing him to cut benefits and salaries.

Question 6

what happened to agriculture under Bruning?

Answer 6

shelters due to agricultural influence I govt, food prices were kept artificially high.

Question 7

what was the 1931 banking crisis?

Answer 7

weimar govt decided to set up a customer union with Austria.

angered the French and they withdrew their currency from Austrian banks

the same happened in Germany resulting in their biggest bank Danatbank collapsing and others being vaunrable

Question 8

what did Bruning do after the banking crisis?

Answer 8

negotiated a moratorium to end the reparations payments with US president Hoover in 1932.

Question 9

how haw burning replaced?

Answer 9

his plan for agrarian socialist was disliked by Hindenburg and lost his position before he could put into place.

Question 10

who replaced Bruning?

Answer 10

Papen

Question 11

what was unemployment at in 1932?

Answer 11

6 million

Question 12

what did papen introduce to try and curb unemployment?

Answer 12

issued an emergency decree in sep 1932 offering tax rebates to employers that employ, end compulsory arbitration. approved by employers, opposed by trade unions

Question 13

what did Schleicher attempt to win over the trade unions after papen’s emergency decree?

Answer 13

programme of public work, price fixing and restoration of wage relief cuts. however this alienated industries and large landowners

Question 14

what was he economy like before hitler took over?

Answer 14

the economy was starting to improve once hitler became chancellor, due to some revival in work trade, not he chancellors.

Question 15

why did hitler interface agricultural policy?

Answer 15

to address the need of peasants (29% of working population) and the smaller working traders

Question 16

what were hitler’s agricultural policies? when?

Answer 16

March 1933: all peasant debts were suspended
May 1933: Law of Protection of Retail Trade, forbade setting up new department stores
July 1933: the Reich food Estate. guaranteed priced for farm produce, high tariffs of food
October 1933: Reich Entailed Farm Law. Prohibited to sell/confiscate/divide or mirage a farm between 7.5-10 hectares

Question 17

define Wehrwirtschaft

Answer 17

an economy to provide foe Germany’s needs in a future war as to establish and spread a racial state. great importance to hitler.

Question 18

what did Wehrwirtschaft lead to?

Answer 18

a need for rapid economic recovery and rearmament. and the appointment of Schacht as president of reichbank in ‘33’ and minister of economics in ‘34’

Question 19

in what 3 ways did Schacht develop the economy between 1933-6?

Answer 19

1. reduce unemployment
2. stimulate economic growth
3. address balance of payments

Question 20

what other measures were there to help combat unemployment?

Answer 20

1. 1933: discouraging females to work
2. 1935: reintroduction of conscription
3. recruitment into RAD

Question 21

what is RAD?

Answer 21

Reich Labour Service.

18-25 sent to work on various civil, military and agricultural projects for 6 months before military service

Question 22

what were Mefo Bills

Answer 22

were a means of ‘deficit-financing’. credit is given to the govt and paid back after 5 years with interest.

made 50% of govt expenditure

Question 23

how did Schscht reduce debts?

Answer 23

paid foreign debt in Reichmark or bonds, this failed as the creditors opposed this move. lead to schacht’s New Plan

Question 24

what was the New Plan? when?

Answer 24

Sep 1934: increased govt regulations on imports, trading with less developed countries, central and southeast Europe.

Question 25

what was the New Plan’s Impact?

Answer 25

increased trade means more Reichmark in foreign countries, encourages he purchase of German goods due to exchange rates

Question 26

how else did Schacht improve the balance of payments?

Answer 26

1. suppressed trade unions so there is no disputes

2. banning strikes an creation of the DAF

Question 27

what other factors were involved in the economic improvement by 1939?

Answer 27

1. end of reparations tanks to burning
2. work creation schemes made before 1933
3. unemployment had begun to fall after June 1932

Question 28

what failures were there in Nazi Economic Policy?

Answer 28

1. reserves in foreign policy remained low, still a deficit and a bigger deficit after 1936 after schacht became less influential.
2. rearmament strained the economy
3. wages increased but so did prices of food

Question 29

why was Schacht replaced?

Answer 29

he wanted to slow down rearmament and cu public spending as it was straining the economy but I was what hit er wanted.

Question 30

who replaced Schacht? how long?

Answer 30

Goering 1936-42