Economic development and policies Flashcards
from revision bookelt
What evidence is there about the state of the German economy when the Nazis took control?
- Economy had shrunk by 40%
- 8 million unemployed
- Agriculture was in recession
- Demand for German Goods was low
What was the name of the man in charge of the economy in Nazi Germany, 1933 to 36?
Hjalmar Schacht
How did Schacht Help farmers get reasonable prices for their produce?
he introduced subsidies on tariffs on imported goods
How much did the public investment increase by?
Public investment tripled
What was built under the public works schemes?
Autobahns motorways, houses and public buildings like libraries and schools
What did shot create to help pay for the government spending?
Mefo bills - Government produced IOUS which could be used by the government as a kind of extra currency. Recipients could exchange mefo bills for real currency after five years
Which countries did Schacht arrange Bilateral trade with?
Southeast European countries (Balkans) like Romania and Yugoslavia
What two pieces of evidence suggest Schacht’s economy reforms were successful by 1936?
- Unemployment fell to 1.5 million
- Production increased by 90%
What was the major weakness in the German economy that was failed to solve?
Trade. Imported more than exported which created a shortage of foreign currency.
What is the name for the ‘war economy’ Hitler wished to create?
Wehrwirtschaft
Why did Hitler remove Schacht from power in 1936?
Hitler and Schacht Disagreed about military spending. Schacht Wanted to focus on developing exports to address Germany’s trade problems whereas Hitler wanted to focus on preparing the economy for war.
What did the phrase ‘guns or butter’ refer to?
It highlighted the economic choice in the mid 1930s between rearmament and consumer goods.
Who replaced Schacht as economics minister?
Hermann Goering Who was prepared to go along with Hitler’s version for the economy.
What is aurtarky?
A self-sufficient economy (I.E. production of raw materials and food) not dependent on foreign loans.
What’s ersatz?
Substitute materials that are made to make the German economy less reliant on foreign imports e.g. artificial rubber, oil. Helps them achieve auto key
What were the two key elements of the 1936 four year plan?
- To increase production in agriculture and raw materials E.g. steel, iron (partly through ersatz) To reduce financial cost of importing goods.
- To massively expand armament production
What was the main weakness of ersatz products?
They were inferior quality and 1/3 of raw materials still had to be imported
Did the four year plan achieve autarky by 1939?
No! Ersatz Could not replace all the raw materials the Nazis needed however Germany’s reliance on imports had not increased.
What evidence is there that the Nazis failed to mobilise the economy during the war?
Armament production remained very low. Germany’s Air Force only increased from 8290 (1939) to 10,780 (1941) While Britain had troubled over the same period 21100.
Why was economic mobilisation so slow during the war?
Poor coordination and inefficiency. There was lots of political infighting between leading Nazis and several different agencies, they often worked against each other.
Who did Hitler appoint to improve Germany’s armament production in 1942?
Albert Speer (Previously Hitler’s personal architect)
How did Speer improve Germany’s war production after 1942?
- Employed more women in arms factory
- made efficient use of concentration camp prisoners as workers
- Prevented skilled workers being lost to military conscription
Name three pieces of evidence that Speer improved the production of armaments?
Within 6 months in 1942:
- Ammunition production increased by 97%
- Tank production rose by 25%
- Total arm production increased by 59%
by nineteen forty four German war production increased threefold
Why did the Nazi economy ultimately fail to meet the demands of total war?
The effects of the Anglo-American bombing prevented Germany from increasing its levels of arms production further. Bombing destroyed factories making weapons, leading to breakdown in communications and forced Germans to divert resources to build underground industrial sites.
When was the first four year plan announced and what was its aims?
1933 and aimed to achieve autarky and combat unemployment and agriculture.
