1933-45 - Economy

Question 1

In the final days of Weimar, what was the peak of unemployment?

Answer 1

Peaked at 6 million

Question 2

What were Hitler’s aims?

Answer 2

Full employment Major expansion of public works, Beauty of Work, defence economy, autarky and acquisition of living space.

Question 3

When did Hitler more or less achieve his goal of full employment?

Answer 3

By 1939

Question 4

How was the major expansion of public works meant to come about?

Answer 4

directed by state and paid for by deficit spending

Question 5

What was Beauty of Work?

Answer 5

The Nazis set up the SdA (Beauty of Work) to help Germans see what work was good, and that everyone who would work, should.

Question 6

What was Autarky?

Answer 6

Germany should be self-sufficient, and not rely on imports from other countries

Question 7

When was the Recovery period of the German economy and who was the main person in it?

Answer 7

1933-36 - Schacht

Question 8

How did Schacht reduce unemployment?

Answer 8

Increased public expenditure and investment
Tax concessions and grants
Women and Jews encouraged/forced out of the work place
Destruction of trade unions and dynamic government created confidence
Government subsidies for companies that took on workers
RADE (Youth Service) took the young off the unemployment list
Cyclical improvement in the world economy

Question 9

When was conscription introduced and what was its impact?

Answer 9

1935 for all 18-25 year old men for two years - further decreased unemployment

Question 10

What was deficit financing?

Answer 10

Government would spend money to expand the economy, consequently the economy would grow and the subsequent tax revenues should cover the Governments finances

Question 11

What were Mefo bills?

Answer 11

Credit notes that were converted into RM after 5 years. They funded about half of Germany’s rearmament programme during 1933-38. They helped disguise military expenditure and avoid inflation in the short term.

Question 12

Who brought about the end of reparation payments?

Answer 12

Bruning

Question 13

What was the balance of trade problem?

Answer 13

By 1934 - Germany was importing more than it was exporting. As a result, foreign currency and gold reserves were reducing.

Question 14

How did Schacht tackle the balance of trade problem?

Answer 14

Through the New Plan and a series of bilateral trade agreements with other countries such as the Balkan states; strategic raw material imports would be part paid through barter to save scarce foreign currency

Question 15

How successful was Schacht in tackling the balance of trade probelm?

Answer 15

This was only partly successful due to increased rearmament. Schacht resigned as Economic Minister in 1937 and the Reichsbank in 1939.

Question 16

When was the Rearmament phase of the German economy and who spearheaded it?

Answer 16

1936-39 - Goering

Question 17

When was Goering put in charge of the Office of the Four-Year Plan?

Answer 17

September 1936

Question 18

What was the aim of the Four-Year Plan?

Answer 18

Aimed to have Germany ready for war in 4 years by focusing on rearmament and autarky, especially in food and industrial production

Question 19

What did the Office of the Four Year Plan do?

Answer 19

Issued regulation regarding foreign currency, raw materials, labour and prices

Question 20

What role did the government play in private industry?

Answer 20

Set targets for private industry to meet in production and the development of ersatz products such as Buna (artificial rubber)

Question 21

What reflects Germany’s failure to achieve autarky?

Answer 21

By 1939, Germany was still dependent on foreign imports for one-third of its raw materials especially iron ore, oil and rubber.

Question 22

What territory did Germany acquire?

Answer 22

In 1938, Austria (hydro-electric power, iron ore, forestry and cattle) and Czechoslovakia (industrial production including the Skoda armament works; copper, textiles and chemicals.

Question 23

By the summer of 1941, how much of the labour force was employed in war related work?

Answer 23

55%

Question 24

When was Fritz Todt appointed Minister of Armaments and Munitions and what did he achieve?

Answer 24

1940, the Todt Organisation had 250,000 building Atlantic Wall defences by 1940

Question 25

When was the invasion of the USSR?

Answer 25

1941

Question 26

How was the development of tanks?

Answer 26

For the invasion of the USSR, Hitler had 3,500 tanks, just 800 more than he’d had in September 1939.

Question 27

Why was there infighting?

Answer 27

The Ministry of Armaments existed alongside three other government ministries - Labour, Economics and Finance - and the Office of the Four Year Plan - all wanted their priorities to dominate

Question 28

When was Albert Speer appointed Minister of Armaments?

Answer 28

February 1942

Question 29

What improvements did Speer make to the war economy?

Answer 29

Decree issued punishing arms manufacturers who made false claims for labour and raw materials.
Prioritised war demands
Brought in greater standardisation in the use of ammunition
Half a million women taken out of domestic employment and deployed for the war effort
Increased use of three shifts a day

Question 30

How did Speer deal with the Gauleiters?

Answer 30

Used links with Hitler to boost his authority e.g. threatened a Gauleiter with no coal supplies if he did not help with food supply

Question 31

Why was Speer only partially successful?

Answer 31

Military conscription of skilled workers continued to disrupt production despite Hitler’s promise to intervene in May 1943
Nazi infighting
Continued allied bombing
Hitler continued to interfere

Question 32

Give an example of how Speer was impacted by Nazi infighting.

Answer 32

Speer hoped that his associate, Hanke would be made Labour Deployment Commissioner. However, Bormann and Lammers successfully blocked the appointment.

Question 33

Give an example of how Hitler interfered with Speer.

Answer 33

Resources were directed to the V1 and V2 projects, rather than production of jet aircraft such as the ME262 fighter.

Question 34

Within six months of Speer’s appointment, what evidence was there that he was successful?

Answer 34

Ammunition output rose by 97%; tank production by 25% and arms production by 60%