9. Economic and Foreign Policies, 1933-39 Flashcards
Why were economic policies a priority for the Nazi Party?
They wanted a stronger economy so they could afford rearmament
What issues did the Nazis face in terms of rebuilding the economy ?
- Lack of raw materials
- Limited foreign currency
- Skills shortage
What was the public works programme?
Hitlers fix to unemployment included building hoses and the autobahn
What did the government give to private companies in order for them to hire more people ?
Subsidies
What did the improving economy lead to that was not good?
A balance of payments problem, Germany were importing more than exporting
What were Mefo Bills?
Money given by the government to pay companies, which would be turned into Reichsmarks in 5 years
What funded half of Germanys rearmament ?
Mefo Bills
How many people were unemployed in 1932?
6 million
How many people were unemployed at the end of 1933?
4 milllion
What increased as wages increased?
prices
What was Germany’s national income in 1932 ?
42.6 million
What was Germany’s national income in 1938?
79.8 million
How much did big businesses income rise because of the Nazis?
116%
What were the two programmes introduced to improve workers conditions and lives?
- Strength through Joy
- Beauty of Work
Who was Hjalmar Schacht?
Hitler’s banker
How did Schacht help Hitler come to power?
He was apart of the group that persuaded Hindenburg to appoint hitler
What role did Schacht have in Weimar ?
He was Director of the Reichsbank and helped set up the Rentenmark
What Plans did Schacht introduce?
- Mefo Bills
- New Plan
What role did Schacht take in March 1933?
President of the Reichsbank
Economic Minister
Why was Schacht crucial to Hitler and the Nazis?
He had connections with Germany’s elite and big buisnesses
When did Schacht resign from his roles?
1939
How did Schacht rebel against Hitler?
He made links with the German resistance
When was Schacht sent to a concentration camp?
July 1944
What happened to Schacht at Nuremberg?
He was acquitted
Why did Schacht fear the Nazis were spending too much money on rearmament?
- Growing budget deficit
- balance of payments gap
When was Goering put in charge of the German economy?
1936
What was the basis of the Four Year Plan ?
- Build a strong army
- Make Germany mostly self-sufficient in food and industry
What is an autarky
Country that is mainly self-sufficient in food and industry
What did the Four Year Plan do to big buisnesses?
It set them targets that they were expected to meet
