Chapter 15-Economic Policies Flashcards
Role of Hjalmar Schacht during 1930s
President of Reichbank and Economics minister.
What was the battle for work?
To help reduce unemployment, money was spent on roads and public buildings. Increased industrial production through loans and tax relief to private companies.
What was introduced in 1935 for unemployed men?
Reich Labour Service- unemployed men were compelled to do 6 months labour in farming or construction.
What was the New Plan 1934?
Place control on imports and access to foreign currency. Trade agreements with foreign countries where Germany was supplied with raw materials and food payed in Reichmarks. This currency could only be used to buy German goods.
Usage of Mefo Bills
Government could pay for their military equipment using credit notes. These bills can be exchanged into Reichmarks. Ensured private companies they would get their money. Bills would have 4% annum interest if they kept them for 5 year term.
What new set of problems were found in German population?
Food shortages, rising prices and lower living standards.
Economic Autarky
Economic independence or self-sufficiency.
Leaders
Hjalmar Schacht
Hermann Georing
Why were the Germans aiming for economic autarky?
So they were ready for war within 4 years.
4 year plan 1936
Plan was rearmament and economic autarky.
How did they achieve the 4 year plan?
-have a managed economy, controls on labour supply, prices, raw materials, foreign exchange.
-set production targets for private companies
-establish industrial plants: HG steelworks
-increase production of iron, steel, chemicals
-encourage research and investment in products
Propaganda campaigns persuade Germans to do what?
But only German goods, eat only German food and use only German raw materials.
What were German told to save?
Pots and pans, scrap metal, garden fences, iron lampposts, park railings.
