Economy Flashcards
When was Albert Speer made minister of armerments
1942
What happened to military expenditure from 1936 to 1939
Military exposure went from 25% of the GNP to 49%
What was the decrease in consumption of goods in 1939
Decrease by 20%
What changed did Speer make
> brought women to work in factories
used forced labour efficiently
prevented engineers from being conscripted
How did Hitler solve unemployment ?
Used tax concessions to boost car industry, increasing by 40%
Conscription was made mandatory in 1935 which took a majority of young men out of unemployment
The voluntary labour service took 500,000 and gave them jobs
What was the voluntary labour service and when was it set up?
1931, It was a scheme to get men to do work that would benefit the country - such as building roads and motorways etc.
What was the law for the reduction of unemployment?
It was used to give money to women about to marry if they left their jobs to open space in the labour force
What policy did Schacht follow?
Deficit financing which increased government spending by 70$
What is deficit financing
A policy where the government spends more than its income to promote an economic boost
What was the New plan and when did it get introduced
1934: It’s aim was to create an emphasis on heavy industry to prepare Germany for war. It meant the government could decide what was being imported and promoted heavy trade with countries in South America.
What was the New plan and when did it get introduced
1934: It’s aim was to create an emphasis on heavy industry to prepare Germany for war. It meant the government could decide what was being imported and promoted heavy trade with countries in South America.
What was Mefo bills?
Credit notes given to manufacturers to help prevent inflation. They raised funds by offering them at 4% interest,
What issues had arrived in 1936
Despite funds being raised for rearmament, there was an increased demand for imports that created unbalance.
This led to Schachts resignation as he had adopted the phrase “Guns or Butter” claiming they needed to focus on production of consumer goods rather than rearmament, Hitler disagreed
Who replaced Schacht in 1936
Göring
What did Goring set out to achieve?
Autarky - self sufficiency
How did Goring set out to achieve autarky?
Wanted to increase agriculture and heavy industry, introduce ersatz and regulate imports and exports to focus on rearmament.
What is ersatz?
Substitutes for consumer goods that could only be achieved through foreign imports - examples such as coffee substitutes
What key war industries were increased under Goring
Synthetic rubber, fuel, oil, and iron ore
What issues did Gorings 4 year plan have?
They did not meat targets for rubber and oil, and still relied on 1/3 of raw materials from foreign support. This meant that the economy was not ready for total war which Hitler had set out for.
What was unemployment at by 1936
Just 1.6 million
How much did military expenditure increase between 1939 and 41
100%
How much of the work force worked on military by 1941
55%
What was the construction of planes increased to by 1941 from 1939
8290 to 10,780
How many tanks were built between 1940 and 1941
Just 800
