3. Nazi Economy

Question 1

What were the 3 Nazi Economic Aims?

Answer 1

• To make Germany an autarky (economically self sufficient.
• To reduce unemployment.
• To rearm Germany.

Question 2

What plan was active from 1934 - 1936, who made it and why?

Answer 2

• In 1934, Hjalmar Schact became Minister of Economics.
• He created The New Plan to help rebuild the German economy after the Great Depression.

Question 3

What happened in the New Plan? (X4)

Answer 3

Hjalmar Schact did many things during the New Plan:

• He introduced cuts to welfare spending.
• He put limits on imports.
• He made trade agreements with other countries - exchanging raw materials for finished goods.
• He put targeted spending on key industries.

Question 4

What was Guns vs Butter and how did it come about?

Answer 4

The new plan was largely successful and the economy was on its way to recovery by 1935. However, Hitler now wanted more focus put on rearmament. Schact opposes this idea and the argument is referred to as Guns vs Butter. By 1936 Schact had been largely sidelined.

Question 5

What plan ran from 1936-1939, who ran it and why?

Answer 5

• In 1936 Herman Goring replaced Schact and introduced the Four Year Plan, with the intention of making Germany ready for war.

Question 6

What happened in the Four Year Plan?

Answer 6

• New factories were constructed such as the ‘Herman Goring Reichswerks’.
• Import levels were further reduced.
• Higher targets were set for the production of essential raw materials.
• Industries were encouraged to create ersatz - these were synthetic replacements for raw materials.
• While there was some progress, by 1939 Germany was still importing 1/3 of its natural resources. The drive for autarky had failed and it became apparent that the only way to meet the shortfall would be to invade other countries.

Question 7

What did the Nazis do to women and Jews in terms of unemployment?

Answer 7

Professional women and Jews were removed from their jobs. They also did not count as being unemployed.

Question 8

What did the Nazis do in terms of Conscription?

Answer 8

In 1933 there were 100,000 men in the army. In 1935 conscription was introduced and by 1939 the army had 1.4 million members.

Question 9

How many jobs were created in the Rearmament and Ersatz industries?

Answer 9

As Germany prepared for war 1000s of jobs were created in the Armament and Ersatz industries.

Question 10

What did the Nazis do in terms of Public Works?

Answer 10

The 1933 Reinhard Project aimed to build autobahns, waterways and railways. A second scheme gave tax incentives for projects in rural areas.

Question 11

What did the RAD do?

Answer 11

The RAD built schools, hospitals and motorways. A six month membership for all men aged 18-25 became compulsory after 1935. While no wages were paid, workers received food and a small amount of spending money and wore military style uniforms. Members were removed from the unemployment register.

Question 12

How did the Nazis impact unemployment?

Answer 12

Unemployment fell from 26% to 1% 1933-39.

Question 13

How many apartments and autobahn the Reinhard Programme build?

Answer 13

1.8 million apartments and 4000km of autobahn.

Question 14

How did switching to the production of armaments affect the German economy?

Answer 14

The choice to switch the economy to the production of
armaments after 1935 weakened it.

Question 15

What created inflation in Nazi Germany and what did it do to the economy?

Answer 15

The printing of 12 billion marks worth of ‘Mefo Bills’
created inflation, and by 1939 the economy was
heading towards crisis.

Question 16

What happened to the death rate in Nazi Germany?

Answer 16

The death rate rose in the period 1933-39.

Question 17

What was there a shortage of and how did it affect the German People?

Answer 17

There was a shortage of specific types of foods,
especially fats, some Germans were suffering from
malnutrition by 1939.

Question 18

What do historians believe that Hitler had to do to prevent economic collapse?

Answer 18

Some historians have suggested that Hitler had to go
to war in 1939 so as to prevent an economic collapse.

Question 19

What happened to small businesses in Nazi Germany and why?

Answer 19

Because of price and rent freezes 20% of small
businesses closed.

Question 20

Was Ersatz effective for the Nazis?

Answer 20

Ersatz was expensive and the products were inferior to the
originals.

Question 21

What did Nazis stop publishing and why?

Answer 21

The national debt was huge - the Nazis stopped
publishing the figure as it became so big.

Question 22

What was there a shortage of and why in terms of workers?

Answer 22

There was a shortage of agricultural workers as many moved to the
towns and cities for work.

Question 23

What was the DAF and who was it run by?

Answer 23

The German Labour Front. This was the Nazi organisation that replaced trade unions, which were banned in May 1933 because they could interfere with Hitler’s plans. It was run by Dr Robert Ley.

Question 24

What did the DAF do in terms of worker’s rights?

Answer 24

Workers could not strike, bargain for wages or change or leave their jobs unless through a government organised ‘labour exchange’.

Question 25

Who did the DAF’s ‘Councils of Trust’ side with?

Answer 25

The DAF was meant to represent workers, but in most
cases it’s ‘Councils of Trust’ sided with employers.

Question 26

How many hours did German workers have to work in Nazi Germany?

Answer 26

By 1939 many German workers were working more
than 70 hours a week.

Question 27

What was the KdF, what was its aims, when was it set up and who was it run by?

Answer 27

The Strength Through Joy (KdF) scheme was set up in November 1933.

Its aims were to make workers support Hitler by offering them rewards and to keep them occupied outside the workplace with organised leisure activities.

It was also run by Dr Ley.

Question 28

What did the KdF do?

Answer 28

Activities and rewards included:

+ Evening classes

+ Theatre trips

+Picnics

+ Broad range of mass participation sporting events

+ Very cheap or free holidays. There were walking holidays in Switzerland and skiing holidays in Bavaria.

+ Two big cruise liners were built to sail people around the Canary Islands for only two weeks’ wages.

+ The KdF also started a savings scheme for workers who wanted to buy the Volkswagen Beetle, known as the “People’s Car”.

+ They were to save 5 marks per week until 750 marks had been paid into the scheme.

Question 29

What was the SdA and what did they do?

Answer 29

The role of this organisation was to help Germans see that work was good and that everyone who could work should do so.

It also encouraged factory owners to improve conditions for workers, for example better lighting and washing facilities.

Question 30

How many workers received a Volkswagen car?

Answer 30

No worker ever received a new Volkswagen as
materials were needed for the war.

Question 31

What happened to public services after money was redirected into rearmament?

Answer 31

As money was redirected into rearmament some
public services declined and there were reductions in
the amount of hospital beds and doctors per head of
population.

Question 32

What health promotions did the Nazis introduce?

Answer 32

The government introduced health promotions such
as:

+ Being the first government in the world to introduce
screening for breast cancer

+ They also discouraged
smoking and heavy drinking.

Question 33

What did the Nazis do in terms of wages?

Answer 33

Real wages rose by 20% under the Nazis while wages
grew slowly the cost of many goods actually fell and
rent freezes and low taxes meant people felt better
off.

Question 34

What did the Nazis provide in terms of healthcare?

Answer 34

The government provided universal health care.

Question 35

What did the Nazis do in terms of paid holidays?

Answer 35

The Nazis doubled paid holidays from 3 to 6 days a
year.