Economic Impact Flashcards
Economic recovery through re-employment
-When Hitler came to power in 1933, Germany was badly affected by the Great Depression, with 6 million jobless Germans and a farming crisis.
-Hitler set up the Reich Labour Service, which made it compulsory for males aged 18-25 years to work on public work projects.
-To achieve autarky, he banned imports and created industries to look for substitutes.
-Positions that were formerly occupied by Jews or women were given to Germans.
-He started massive public building programmes, such as the construction of autobahns or highways.
-All these helped to create more jobs and unemployment fell to only 1/4 million in 1939.
-This boosted the economic recovery and provided many Germans with the means of livelihood. This in turn helped them recover from the effects of the Great Depression and saved them from hunger, poverty and economic hardship.
-This raised the morale of the people, which increased the support for the Nazis.
Hence, with the creation of jobs, Hitler delivered on his electoral promise to bring economic recovery.
Thus Hitler’s rule was successful in resolving the economic crisis and lifting the people out of poverty.
Economic recovery due to militarisation
-In 1935, Hitler introduced conscription and expanded the army.
-He also started the modern airforce, Luftwaffe.
-Hermann Goering’s 4-year plan, which aimed to get Germany ready for war in 4 years, saw massive amounts spent on the production of war materials such as weapons and uniforms.
-All these measures created many jobs for the unemployed and boosted economic growth.
-As a result, the unemployment rate fell drastically and people now had the means of livelihood to meet their basic needs.
Thus Hitler’s rearmament and militarization programme helped to create jobs and lift the people out of the economic crisis.
Control over trade unions
-Hitler imposed a wage freeze on all workers in 1935.
–He banned trade unions and forced all workers to join a worker’s organisation called the German Work Front, where workers were strictly controlled by the Nazis.
-Though workers could not be sacked on the spot, they were no longer allowed to strike or bargain for higher pay or better work conditions.
-Workers could not change jobs without the government’s permission.
-All workers were given ‘work books’ in which employers made comments about them.
-Though the economy improved in general, it was achieved at the expense of workers’ wages and benefits.
-Though the ban on trade unions resulted in fewer strikes and greater industrial peace, it also meant that workers lost a platform to protect their interests.
-The workers also lost the freedom to change jobs.
Hence the Nazis’ strict control and monitoring of German workers meant a loss of freedom and affected them adversely.
Control over worker’s leisure time
- To win the support of workers and to control their leisure time, the Nazis set up the ‘Strength Through Joy’(KdF) programme to provide cheap recreational activities such as cruises and sports events for workers.
- The ‘Beauty of Labour’ programme was set up to improve working conditions such as the provision of washing facilities but the workers had to indirectly pay for them.
- Hitler also started a scheme to encourage Germans to save 5 deutsche marks a week to buy a Volkswagen car.
- The KdF programme was very popular, as it made it possible for ordinary workers to afford social activities that they previously could not. They benefited from a wide range of recreational activities planned for them.
- As a result of Nazi control over workers’ free time, the workers led highly controlled lives, constantly being watched by the Nazis.
Rise of rich industrialists
-To achieve autarky, Hitler banned all imports.
-Under the Four-Year Plan, Hitler subsidised industries important to Germany, such as oil and steel. Companies that produced these were given huge government contracts to produce these goods.
-He also spent huge amounts on rearmament.
-The issue of government contracts to companies of subsidised industries benefited their owners, as it boosted their incomes. In return, they continued to give financial support to Hitler.
-Companies involved in the production of war materials also thrived and it boosted the incomes of the industrialists who owned these companies.
Thus the Nazis were able to control the rich industrialists who thrived under Hitler’s leadership by giving them huge contracts and winning over their support in return.
