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History > 3b: Controlling The Economy 1933-45 > Flashcards

3b: Controlling The Economy 1933-45 Flashcards

1
Q

What were Hitler’s goals for the economy?

A
  • Ensure reasonable standard of living (popular policy to gain support)
  • Rearmament
  • Autarky (wanted to avoid impacts of a naval blockade as seen in WW1)
    (War preparation)
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2
Q

What was he ‘primacy of politics’?

A

Believed concepts eg supply and demand were insignificant and though economics should serve his political objectives. Wanted economics to serve the good of the race.

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3
Q

What period were the Nazis attempting economic recovery?

A

From 1933-36, during which period Hjalmar Schacht was Minster of Economics (maintained from theWeimar period)

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4
Q

What were examples of indirect stimulus that the Nazis used to stimulate the economy?

A

Cut taxes on farming, small businesses and heavy industry.
(Businesses had more money available to buy goods and employ workers.)
Gave grants eg to newly weds, businesses etc

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5
Q

What direct measures did the Nazis use?

A

Financed work creation schemes

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6
Q

Which establishment involved in work creation was established in June 1933 and hw much money did it commit to public works schemes?

A

The Reinhardt Programme, committed 1,000 million RM eg to road building (autobahns), bridge repairs etc

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7
Q

How much did governmen spending on work creation increase by from 1932-33?

A

Over 500 million RM

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8
Q

How many jobs had been created by 1934 and what percentage were from government schemes?

A

2.8 million jobs, 20% through government schemes directly

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9
Q

Why did businesses have confidence in the Reichsbank?

A

Schacht was the president and was respected by businesses, so they were willing to accept government grants and tax breaks etc

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10
Q

How many people were unemployed by 1934 and then 1936?

A

2.7 million 1934
1.6 million 1936
(Compared to 6 million n 1932)

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11
Q

What other methods did Nazis use to show the fall in unemployment?

A

Invisible unemployment eg women encouraged not to work + not counted in stats, Jews not counted and barred from jobs eg the Civil Service (Law for the Restoration of the Professional Civil Service 1933)

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12
Q

What were Mefo Bills?

A

Mark GmbH placed orders for military goods, paid with Mefo bills, which were IOUs allowing the government to delay payments until late 1930s (designed to hide the government’s rearmament.) Started in 1333. In total, financed 1/5 of all military spending from 1933-39.

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13
Q

What were the key features of Schacht’s New Plan 1934?

A

Import quotas, trade agreements

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14
Q

What goods received import quotas?

A

By Usmmer 1934, strict imports on goods eg wool, cotton, leather etc but no restriction on stee/ military supplies needed for armaments

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15
Q

How many new departments were created in the Ministry of Economics to issue licenses?

A

25 by August 1934. Importing goods without a license was illegal.

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16
Q

When did balance of trades come back into balance?

A

1935

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17
Q

Where were new trade agreements formed?

A

With developing countries eg Peru and Brazil. Advantages over trade with Britain and USA were that Germany could get more favourable deals due to having a stronger economy. Able to use barter deals - traded without money leaving.)

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18
Q

What were the successes o the New Plan?

A

Allowed economy to grow, solved balance of trade by 1935. Fortunate neither USA or Britain limited trade due to import quotas.

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19
Q

How did the textile industry suffer from the New Plan?

A

Failed to recover to Pe-depression levels due to strict quotas on importing materials eg wool and cotton. (employed 20% of industrial workers)

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20
Q

What was the crisis of 1935-36 (Guns v Butter debate)

A

German agricultural problems led to economic crash. Poor harvests 1934-35 led to food shortage. Butter was rationed 1935. Bread rationing was considered, although this wold have been extremely unpopular.

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21
Q

During what period did the Nazis work to create a Command Economy?

A

1936-39, as a result of the guns v butter debate the Nazi economic policies radicalised.

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22
Q

What were the aims of the Four Year Plan?

A

To prepare the armed forces for war by 1940 and ensure the German economy would achieve autarky in the same period.

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23
Q

Who was the head of the Four Year Plan?

A

Goering, making him head of the Four Year Plan organisation. Schacht remained minister for economics and so there was great conflict between Goering’s increased military spending and Schacht’s import controls (polycratic regime).

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24
Q

How did the four year plan show radicalisation of economic policy?

A

It gave Goering, a committed Nazi, an economic role. Schacht resigned from minister of economics in 1937 and as president of the Reichsbank in 1939 and so Nazis had complete control over economic policies.

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25
Q

What power did the Nazis have over businesses?

A

They could set production targets and were able to nationalise businesses that didn’t meet them.

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26
Q

How much did coal production increase by from 1936 to 38?

A

By 60 million tonnes, a success of the FYP.

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27
Q

Which foods did Germany become self sufficient in?

A

Bread, potatoes and sugar.

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28
Q

How much did steel production increase by from 1936 to 38?

A

Over 3 million tonnes, due to nationalisation of steel companies. However, the steel was produced from uneconomical German iron deposits and therefore cost more than imports would have.

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29
Q

In 1937, how much of the required steel by the military was produced?

A

Only 300,000/750 000 tonnes per month

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30
Q

Why did Germany only produce 20% of the ersatz oil it required in 1939?

A

There were labour shortages by 1938, with an estimated 20-30,000 extra miners being needed to mine coal.

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31
Q

Why did aircraft production decrease in the first year of the plan?

A

Goering rejected plans to introduce production lines as he thought this wold destroy German craftsmanship.

32
Q

How much was ersatz rubber increase by from 1936-38?

A

500%, however it was expensive and it would have been more efficient to have imported rubber.

33
Q

When did military leaders advise that they would be ready for war?

A

1943

34
Q

Why was the economy on the brink of an inflation crisis in 1939?

A

To pay for rearmament, the government had pumped money into the economy. No consumer goods were made, so the money imply pushed up prices.

35
Q

Why was Germany able to rearm?

A

By keeping the standard of living low.

36
Q

How much of the population did the working class form?

A

46% in 1933

37
Q

Why did conditions fall for the working class?

A

Hitler destroyed the union movements in order to prevent strikes and remove the workers’ influence over pay and conditions. Power to set wages/ resolve disputes was given to regional trustees of labour, appointed by the Ministry of Labour.

38
Q

How many hours did the average working week rise by under the Nazis?

A

Rose from 43 to 47 hours (increased by 4)

39
Q

How much lower were average hourly wages in 1933 compared to 32?

A

3% lower

40
Q

How much lower were average hourly wages in 1939 compared o 1932?

A

2% lower

41
Q

When did DAF (German Labour Front) replace trade unions?

A

1933, acting as consolidation of NAzi power by merging al independent trades unions.

42
Q

Volksgemeinschaft (People’s Community)

A

Thought me to good society was that all classes were working towards the good of the Aryan race. Middle and working class Aryans should be taught to see that their race was more important than their class.

43
Q

When was the KdF (Strength Through Joy) programme founded and why?

A

1933, in order to use economic policy to gain popular support. It’s purpose was to provide leisure to working people. It subsidised sports activities, theatre and opera tickets, organised touring orchestras to play in factories, subsidised hiking trips, set up art exhibitions etc

44
Q

What was the KdFs budget by 1937 and how many short holidays had it subsidised?

A

RM29 million an 1.7 millions

45
Q

What were the failures of the KdF’s services?

A

Holidays had basic facilities with little privacy and many tickets for concerts/ operas were bought by middle class instead of working class individuals.

46
Q

How much did the number of women in the workforce increase by from 1933-39?

A

From 11.4 million to 14.8 million. Encouraged to take clerical jobs in order to release men for work in munitions.

47
Q

What was the average woman’s wage compared to a man’s?

A

Half, and women were often employed to the jobs with lowest pay and status. Eg Female textile workers in Waldenburg earned under half of the average woman’s wage, with many such people forced into prostitution.

48
Q

How did firms (industrialists) benefit from the Nazi policies?

A

Destruction of trades unions kept workers wages low and allowed firms to increase the working day. They also received government contracts to produce munitions, military uniforms etc

49
Q

What was the status of IG Farben (a chemical company) and why by 1939?

A

They had over 200,000 employees and was worth over RM1.6 billion (therefore one of the largest businesses globally) due to prospering from its involvement in the Four Year Plan.

50
Q

Why did some industrialists protest?

A

Thyssen, owner of United Steel works, objected to having to mine unprofitable steel. This led to him being placed in a concentration camp and the company being nationalised.

51
Q

How much of the population did farmers make up in 1933?

A

29% of the total workforce, with 1/3 of people living in rural areas.

52
Q

Who was the Minister of Agriculture?

A

Darre

53
Q

What reforms did Darre introduce to ‘protect’ farms?

A

Price controls on food and the Reich EntailFarm Law, making it illegal to sell small and medium farms, preventing family farming being bought out by land owners.

54
Q

How did price controls and the Reich Farm Entail Law disadvantage the farmers?

A

Reduced profits, making it difficult for farmers to pay wages. Food sale was also supervised by the Reich Food Estate, which took an u to 25% cut. As land couldn’ be sold, banks refused to offer loans based on their value. Finally, women couldn’t inherit farmland.

55
Q

Why was agriculture not seen as a key problem?

A

In the short term, Hitler saw rearmament as the priority in order to gain lebensraum later on, which could provide land for agriculture.

56
Q

Which were the four centres of economic power in Germany in the first years of the war?

A

The Four Year Plan Organisation was responsible for organising labour and producing munitions.

Fritz Todt’s Ministry of Munitions also responsible for organising labour an producing munitions.

The Ministry of Economics allocated economic resources across government departments.

The SS ran slave labour camps producing munitions, raw materials and consumer goods.

57
Q

What was the effect of the polycratic system?

A

There was chaos and a lack of coordination between the economic policies.

58
Q

Why was there conflict between leading Nazis, business owners and military leaders?

A

Goering and other Nazis set unrealistic targets and encouraged businesses to work in uneconomic ways. Military leaders fought over resources.

59
Q

What roles did Goering have and how did this affect his work?

A

Head of the Luftwaffe, head of the Four Year Plan, field Marshall in the army, minister for Prussia. Meant he was unable to complete all tasks effectively, and also wouldn’t delegate due to fear of power loss. Also biased in allocating resources eg prioritised the Luftwaffe.

60
Q

When did Hitler order a massive expansion of arms production?

A

On the eve of war, 1938-39

61
Q

How many planes did Hitler want to increase the Luftwaffe to? (Impossible plans)

A

21,000 planes, although the Luftwaffe never exceeded 5,000 planes.

62
Q

Why was it harder to extract foreign resources than they had anticipated?

A

There was a shortage of skilled labour and drilling machinery that prevented oil being extracted from Soviet oil fields after the invasion of Stalingrad.

63
Q

Why did Hitler invade the Soviet Union in 1941?

A

The Nazis made military plans on the basis of the success of their (unrealistic) economic plans. Goering assured Luftwaffe would supply the army, however it was too small to met this need.

64
Q

Allied economies

A

In 1941, Germany was fighting against the USA, Britain and the Soviet Union, thee of the most powerful global economies.

65
Q

What are examples of diversion of resources from the direct objective of fighting a war?

A
  • The Final Solution, 1942
  • Goebbels’ propeganda eg making films such as Kolberg, 1945, designed to increase morale and requiring the recall of 10,000 troops from the front line
66
Q

How much had Germany spent on weapons by 1940 compared to Britain an why?

A

$6 million compared to $3.5 million, ($2.5 million more) but Britain had produced 50% more aircraft. This was due to the German army continually updating weapons. Convinced that egret super weapons could win the war eg focused resources on V1 and V2 rockets.

67
Q

What products did Germany continue to produce until 1943?

A

Consumer products like cosmetics, in contrast to Britain endearing the production of non-essential products like lipstick in 1939.

68
Q

How much did the meat ration drop below in 1942?

A

500g a week. Food shortages due to farm labourers joining the army.

69
Q

When was Todd killed?

A

February 1942

70
Q

What did the decree Speer persuaded Hitler to issue in March 1942 recognise?

A

That arms production was the top priority and gave Speer undisputed economic authority.

71
Q

In what ways did Speer try to rationalise the economy?

A

Est. a Central Planning Board to co-ordinate economic organisation.
Introduced production lines.
Prevented conscription of skilled workers into the army.
Excluded military leaders from industrial decisions.
Encouraged employment of women.
Made use of slave labour from concentration camps.

72
Q

How much did was production increase by from 1942-44?

A

It trebled. Eg ammunition production increased by 97%

73
Q

How much id war production fall by December 1944 to January 1945?

A

60%

74
Q

What factors caused Germany’s economic collapse?

A

Enemy troops were advancing so Germany lost territory and resources, air raids were destroying factories, roads and canals. As the Red Army advanced, refugees entered Germany placing a greater strain on resources.

75
Q

What policy did Hitler order in the final stage of war?

A

The scorched earth policy, to prevent German factories and farms falling into enemy hands. Speer worked against this in order to save factories and farms to support any surviving Germans.

History (7 decks)

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