8. Nazi Germany: The Economy (1933-1945) Flashcards
What economic problems did the Nazis face when they came to power in 1933?
- There was 6 million people unemployed at the time.
- National income had shrunk by 39%
- 50,000 businesses had gone bankrupt
- Industrial production had fallen by 40%
- Wages had fallen between 20-30%
- 6.6 billion debt
What policies did the Nazis introduce to reduce unemployment in Germany?
- The Reich Labour Service was a Nazi government agency aimed at reducing unemployment.
- Number of schemes to create work such as reforestation and motorisation
What policies did the Nazis introduce to improve Germany’s agricultural (farming) industry?
- Import tariffs were increased on agricultural produce, making German agricultural products cheaper
- Reich food estate (RNS) was set up to regulate food production.
How did businesses benefit from the economic policies of the Nazis?
- Small businesses were supported under the Nazis e.g. the 1933 law for protection of retail trade stopped building of new department stores and expansion of old ones.
- Big businesses benefited from the abolition of trade unions and creation of the one union
What policies did the Nazis introduce to manage international trade?
- ‘New plan’ in January 1934 which gave the government control over all aspects of trade, tariffs adn currency exchange.
- Bilateral trade agreements with eastern European countries which involved exchange of goods rather than paying for imports
- Mefo bills scheme was introduced t finance government spending
What policies did the Nazis introduce to achieve autarky (economic self-sufficiency) in the early years of their rule (1933-36)?
- Import tariffs were increased on agricultural produce to make German agricultural products cheaper.
- Schacht introduced a New Plan in Jan 1934 so the government can control trade tariffs and currency exchange in all aspects, so that there would be less excessive imports from abroad.
- The government were given the power to allow and disallow all imports.
- Germany began to trade with Easter European countries so they could exchange goods for kind, rather than pay for them.
Identify three key pieces of evidence which suggest that the German economy recovered in the early years of Nazi rule (1933-1936).
- Unemployment went from 29.9% 1932 to 7.4% 1936
- All farm produce in the cuntry provided by German farmers increased from 68% 1928 to 80% 1934
- By mid 1936, industrial production had increased by 60%
Identify three pieces of evidence which suggest that economic recovery was limited in the early years of Nazi rule (1933-36).
Germany was still not economically self sufficient
Schact was forced to choose between food or raw materials to ensure Germany was borrowing as little money as possible.
By 1935 many countries were demanding proper payment
What is a “command economy”, and why did the Nazis introduce this in 1936?
A “command economy” is one where the state, not business or agriculture, decides what and how much to produce.
The Nazi’s worked towards this from the start, setting up state control over industry and agriculture as they rebuilt the economy. The first Four-Year Plan ran for just three years, until 1936. In 1936, the state had high foreign debts because of raw material imports for rearmament and work creation.
What were the NSDAP’s aims for the economy between 1936 and 1939?
- To regulate imports and exports
- To control the key sectors of labour
- To increase the production of raw material
- To develop ersatz productions
- To increase agricultural production
Identify two successes of the second Four Year Plan (1936-39).
- Jam consumption trebelled (1928-1938)
- Production overall increased
Identify two pieces of evidence which suggest that the Nazis had not achieved their aim of autarky (economic self-sufficiency) by 1939.
- Still reliant on imports for 1/3 of supply of raw materials
- Were not able to import food and weapons in preparation for war
How did the economy become more centralised after April 22, 1942 (during the Second World War)?
The Central Planning Board was set up to distribute raw materials, decide on whether to build a factory or extend an existing one and to organise transportation.
It had a variety of committees and Hitler was the only person who could override the Board’s decisions.
Identify three pieces of evidence which suggest that the Nazi war economy was effective during World War Two.
- Ammunition production increased by 97%.
- 55% of the workforce was involved in war-related projects.
- There was more than a three-fold increase in war production from 1942 to the second half of 1944.
Identify three pieces of evidence which suggest that the Nazi war economy was ineffective during World War Two.
- Loss of land that had provided raw materials.
- Allied bombings wiped out factories, mines, towns and transport links.
- Sabotage by foreign workers, for example, deliberate ‘mistakes’ that damaged equipment and machines.
