Controlling the Economy Flashcards
Who was responsible for the economic recovery under the Nazis?
Due to Hitler’s lack of experience, recovery attempts were left to prominent bankers and civil servants.
What was the plan for economic recovery?
Increase the amount of capital circulating in Germany by investing heavily in the economy in order to create more job opportunities.
What were the policies of economic recovery?
The government established the RAD that required any man between the ages of 18-25 to work for at least 6 months working on roads, reforestation, land reclamation and construction of houses.
Why was the RAD risky?
It increased government spending by 70%, however, it improved the unemployment situation considerably.
Why did the unemployment figures look impressive?
They excluded women and Jews from the workforce.
What is a command economy?
It is government control of the important economic decisions that would usually be made by independent business leaders and industrialists on a supply and demand basis.
What are the key decisions of a command economy?
- How many workers for each industry should have?
- How much a certain industry must produce
- What products should be imported and exported internationally.
- What raw materials should be produced at home rather than imported.
- What crops should be grown at home
What was Hitler’s ‘Four Year Plans’?
These were plans for the economy. Hitler intended Germany to have an economy fit to support the country if war should break out. This should make Germany autarkic so that the trade embargoes and blockades would not be as devastating as WW1.
How were workers protected?
They were protected by the DAF, who guaranteed a certain amount of holiday to workers and organised recreational activities through the ‘Strength through Joy’ programme eg. holiday resorts and leisure retreats.
What were the economic mistakes made by the Nazis?
The Nazi government refused to make wartime measures, (allowing women in the workforce).
What were the war reforms?
To dismantle the Command economy and to relax the restrictions placed on industries in order to create an industry of self-responsibility. Other reforms included allowing to work in factories and preventing skilled labourers being called up to fight as well as a more effective use of concentration camp prisoners.
What was the result of the war reforms?
Ammunition production increased by 97% and total arms production increased by 57%.
