Economic Policies Flashcards
What did the Nazis want?
Economic Autarky
How did Germany stimulate the economy under schacht?
• Pumping money into big projects
• Subsidies to private firms
• Putting in wage and price controls
• ‘New plan’ to control trade and payments
• Mefo Bills
How many employed at Autobahn peak?
125,000
What did unemployment decrease from 1933-39?
6 million to 200,000
What was the battle for work?
• More money spent on building
• Loans and tax relief encouraged employment
• 1935 Reich labour service introduced
What was the Reich Labour service?
• Unemployed young men compelled to do six months labour
• Military conscription reinstated 1936
What was Schachts new plan?
• Placed contrôle on imports
• Negotiated trade agreements
• Controls on foreign currency
What were Mefo bills?
• Could be brought by companies
• Interest on the loans so companies wouldn’t cash them in (4%)
• Rearmament could be started even though they didn’t have funds
Was Schacht successful?
• Food shortages
• Rising prices
• Lower living standards 1935-36
• reduced unemployment
Why was Goering and the four year plan favoured?
Hitler wanted rearmament and Schacht disagreed
What were the 4 year plans goal?
• Rearmament
• Economic autarky
How would the 4 year plan be achieved?
• Creating a managed economy
• Setting production targets
• New state owned industry, Goering steelworks
• Increasing production of key commodities
• Encouraging Ersatz research
What were the 4 year plan results?
• Did not meet the targets
• 1939- still imported 1/3
• 1939- economy under severe strain
Who benefited the most from the 4 year plan?
• Industrial elites
• I.G.Farben increased profits from 71 to 240 million reichsmarks
Who lost out in 4 year plan?
• German people
• Ruhr steelworks
What was invisible unemployment?
• Married women couldn’t work
• Conscription reintroduced
• Occasional employment counted
Proof living standards decreased
• Workers wages had increased deductions
• Prices rose
• Hours increased
• Diets declined
Proof living standards increased
• Employers managed to get around wage increases
