ECONOMIC & EMPLOYMENT POLICIES Flashcards
How was Hitler helped financially in 1932?
End of reparations.
What was Hitler able to build on, that Schleicher originally created?
Public Works Scheme.
What had Hitler promised in 1933?
To solve the unemployment problem within four years.
How many Reichsmark were invested in the Nazi employment schemes?
One Billion.
How much did car production increase by? How did this happen?
40%
Encouraged by tax concessions.
What was introduced in 19(), which helped to employ unemployed youth?
1935 0Introduction of conscription.
How many men did the____ Labour _____ employ?
VOLUTNARY LABOUR SERVICE 500,000.
What was the result of unemployment by 1938?
Virtually full employment.
How much had unemployment fallen to by 1934? When did it fall again after that?
2.5 million in 1934.
1936, following the introduction of conscription.
What was the downside of the Reich Labour Service?
Was not only poorly paid, but involved hard labour.
What was Schacht appointed in 1934?
Minister of Economics.
What did Schacht encourage? What was this policy called?
Heavy state spending.
Deficit Financing.
What did deficit financing result in for the government?
70% spending rise.
How did the Nazis avoid inflation?
Through the introduction of Mefo bills. (credit notes used to pay the armants factories e.g Krupps to produce arms - allowed secret rearmament, allowed gov to run up a deficit, and could be exchanged for RM)
How was the import problem worsening by 1936?
- not achieving autarky
- not creating enough exports to keep up as all was going towards rearmament
- Raising of funds for rearmament, created demand for imports.
Who did Hitler appoint after Schacht? As what?
1936
Göring as Commissioner for Raw Materials and Currency.
What was the aim regarding production in the four year plan?
GOERING
Increase armaments production and also achieve autarky.
How did the four year plan set out to achieve autarky? (3)
Increase agricultural and industrial production, develop ersatz (inferior, cheaper subs of a product) and regulate imports and exports.
What type of economy was Hitler working towards?
Total war economy.
What was one of the main aims of the four year plan?
To increase the production in key war industries.
What was built in order to achieve the desired increase in production?
Large plants (such as refiners, aluminium plants etc)
When were Austrian companies taken over? Under what?
1938.
Anschluss.
By 1939, when war broke out, how much did the Germans still rely on foreign supplies?
One-third of its raw materials and therefore not ready for total war.
How much of the workforce were employed in rearmament?
One-quarter.
Where was there shortages due to large-scale rearmament?
Food, consumer goods and raw materials.
Balance of trade had become difficult to finance.
What did these shortages in consumer goods, food and raw materials result in?
Discontent among the working-class.
How much of German investment had been directed toward rearmament?
Two-Thirds.
Why was Hitler forced into war before he was economically ready?
Due to diplomatic developments that brought in France and Britain.
What was the downside to the fall in unemployment?
The position of many workers declined, as they were stripped of their rights including negotiations over pay and conditions.
What were independent trade unions replaced by?
The German Labour Front (DAF).
What did the DAF arrange?
Wages and working conditions.
How much did working hours increase by?
Increased from 43 hours per week in 1933 to 47 by 1939.
Why was the ‘Strength through Joy’ movement established?
Aware of the need to win support of workers.
What was the ‘Strength through Joy’ movement?
NOV 1933
State welfare organisation to gain the support of workers and improve conditions and morale in the workplace.
What did the ‘Strength through Joy’ movement offer workers as an incentive?
Real benefits of sports facilities, cultural visits and holidays.
What was the reality of the ‘Strength through Joy’ movement and the benefits it promoted?
Only offered to loyal workers and therefore, had limited impact.
Overall, what was the reality of the fall in unemployment?
Virtually eradicated, however, it was achieved only because one-quarter of the workforce was employed in rearmament.
How much of Germany’s GNP was spent on rearmament?
17% in 1938-39.
What did this focus on rearmament create?
Economic problems, such as, production bottlenecks, competition for scarce resources, labour shortages and a growing threat of inflation.
Despite the increase in production, what was the result?
Production targets were not met and imports were still needed, which continued to drain the financial resources of the country.
What did Schacht create to help unemployment?
1935 National Labour Service (RAD) - extension of Weimar’s public works’ schemes
What did RAD use unemployed men to do?
Build government-funded motorways, hospitals, schools etc e.g Olympic Stadium 1936.
When did RAD become compulsory?
Men: 1935
Women: 1939
How much did the army increase due to conscription?
From 0.4 million in 1935 to 1.4 million in 1939.
How much was spent on rearmament?
46 billion marks.
