Economic development and policies, 1933-45

Question 1

What economic problems did the Nazis face when they came to power in 1933?

Answer 1

• There was 6 million unemployed people at the time.
• National income shrunk by 39%
• 50,000 businesses went bankrupt
• Industrial production fell by 40%
• Wages fell between 20-30%
• 6.6 billion debt

Question 2

What policies did the Nazis introduce to reduce unemployment in Germany?

Answer 2

Reduced unemployment:

• RAD work schemes for unemployed men and women, provided manual work .
• Road-building schemes, tied to increased car and truck manufacture, created work and improved communications.

Question 3

What policies did the Nazis introduce to improve Germany’s agricultural (farming) industry?

Answer 3

Alfred Hugenburg, the minister of agriculture, increased import tariffs on agricultural produce, making German produce cheaper.
He banned banks repossessing farms from farmers in debt, to keep them farming and made margarine manufacturers put butter from German farmers in their margarine .

Question 4

What was the significance of the Reichsnahrstand (Reich Food Estate, RNS)?

Answer 4

It regulated food production and distribution of farm produce, as well as setting prices and farm wages. The RNS could fine people up to RM100,000 for not conforming.

Question 5

Who set up the RNS?

Answer 5

Richard Darre.

Question 6

What policies did the Nazis introduce to achieve autarky (economic self-sufficiency) in the early years of their rule (1933-36)?

Answer 6

1. Import tariffs were increased on agricultural produce to make German agricultural products cheaper.
2. Schacht introduced a New Plan in Jan 1934 so the government can control trade tariffs and currency exchange in all aspects, so that there would be less excessive imports from abroad.
3. The government were given the power to allow and disallow all imports.
4. Germany began to trade with Easter European countries so they could exchange goods for kind, rather than pay for them.

Question 7

Identify three key pieces of evidence which suggest that the German economy recovered in the early years of Nazi rule (1933-1936).

Answer 7

• Unemployment went from 29.9% 1932 to 7.4% 1936
• All farm produce in the cuntry provided by German farmers increased from 68% 1928 to 80% 1934
• By mid 1936, industrial production had increased by 60%