9 - Nazi economy 1933-1939

Question 1

What was Nazi policy and what was the reaction from the elites??

Answer 1

Many welcomed the Nazis and policies as they were beneficial.
No labour unions
Political stability
Economic Revival

Later increased gov intervention was annoying.

Question 2

Who is Hjalmar Schacht??

Answer 2

President of the Reischbank
Economics Minister from August 1934
Controls on wages and prices to control inflation
“1934 New Plan” Foreign trade and improve payment balance.

Hitler trusts elitist to help and shows they support him

Question 3

When and What was the New Plan??

Answer 3

1934
Imports grew faster than exports
Trade agreements with Balkan States and South America - Germany paid with reichmarks meaning suppliers could only spend them on German goods

Question 4

What was a Mefo Bill??

Answer 4

Military expenditure via credit notes to avoid borrowing inflation.
Bills exchanged for cash at banks.
4% interest per year if they didnt cash in for four years.

Rearmament not funded by Gov or on Gov spread sheet.

Question 5

What is Autarky??

Answer 5

Self sufficiency
National pride
Preparation for war

Food and raw materials

Question 6

What is Autarky in practice??

Answer 6

Propaganda - Buy german goods, eat german food
Save for future investment
1937 - collection of scrap metal from homes, gardens and public spaces
Collection committees

Question 7

Who benefiited and failed from the four year plan??

Answer 7

+ was I.G Farben 1935 - 71 million profit
1939 240 million profit
- Ruhr valley steel and iron firms who were bypassed and replaced by Hermann Goring steelworks

Hermanns was the largest enterprise in Europe.

Question 8

What was the result of the four year plan??

Answer 8

Didnt meet proaganda
claims or regime targets
1939 - 33% of raw materials are still imported and resources focused on consumer goods not war as economy was a strain.