Economy in Nazi Germany Flashcards
what was ‘guns and butter’?
- german economy slogan
- butter was the improvement in living standards, 1933-36
- guns was war and rearmament (needed people and stability) 1936-39
what were the main points of Hjalmar Schacht’s economy?
- state investment
- trade agreements with other countries
- tried to limit imports
- the ‘New Plan’
- work-creation schemes
who was Hjalmar Schacht?
President of the Reichsbank and Minister of Economics from 1934-37
why did Schacht increase state investment?
- expanded and refined the Weimar’s policies of state investment which had been started in 1931
- hoped it would stimulate demand for goods and expand income, and lift Germany out of economic recession.
- allowed the Nazi state to slowly take control of industry. as gvt spending channelled through industry
what was the impact of trade agreements with other countries under Schacht?
- supplied raw materials
- meant that Germany relied on other countries which slowed rearmament
- this didn’t matter to nazis as they would eventually take over those countries
when was the ‘New Plan’?
September 1934
what was the ‘New Plan’?
- to grow the economy to provide the basics for rearmament
- promoted autarky so Germany would be less vulnerable to fluctuations in the world’s economic situation, and more able to sustain a long war.
why was autarky an aim for the Nazi economy?
in WWI they suffered from all kinds of shortages due to Allies blocking the flow of goods into the country
when was the first work-creation scheme announced?
1st June 1933
what was the RAD?
- Reich Labour Service
- used unskilled or unemployed workers to complete large-scale government projects
- government heavily invested in projects that would require large amounts of labour (eg constructing schools, hospitals, roads)
what kind of things did the RAD do?
- reich labour service
- Autobahn system, planted forests, mended headges, dug farm drainage ditches, 1936 Olympic stadium)
how many men did the creation of the autobahn system create work for?
over 80 000
when was the RAD made compulsory, and for how long?
1935, for at least 6 months, as part of rearmament policy
who was employed by the RAD?
men 18-25 y/o
did work creation schemes help unemployment?
- largely successful in reducing the number of unemployed, but those ‘employed’ had little choice over what they did, what they got paid, and where they worked.
- wages fixed at a lower level than they had been prior to the Wall Street Crash and were not up for negotiation.
- maximum working hours per week were increased from 60 to 72.
- limited choice of profession open to workers in Germany - Many forced to work as laborers or in factories for the war effort.
- people who refused to work listed as ‘work-shy’ - horrific treatment by Gestapo, or put in concentration camps.
what were the main points of Hermann Goering’s economy?
- regulation on imports (food price increased) and exports of goods
- achievement of economic self-sufficiency specifically in raw materials needed for rearmament
- retraining the labour force with industrial skills
- rearmament
who was Hermann Goering?
Commissioner of the Four Year Plan 1937-38
when did the four year plan begin?
started in 1936 - aimed to be completed in 1940
what was the aim of the four year plan?
to re-orientate the economy towards rearmament and war preparation
why was goering made commissioner of the four year plan?
freed Hitler from his reliance on non-Nazi economists to stabilise and recover the economy since 1933
why was Schacht opposed to the four year plan?
- believed that economic revival should have been continued to improve living standards and Germany’s international position
- opposed Hitler using economic stability to launch into full-scale rearmament programme, as he was concerned that Hitler’s policies would undermine his economic achievements
from 1936-39, how much industrial development came from war preparation?
2/3
how much was invested in war preparation, under goering, by both state and private companies?
6.4 billion Reichsmark
why was unemployment almost completely eradicated by 1938?
investment demanded employment - jobs in steel, textiles, shipbuilding
- production of raw materials eg rubber, oil, coal - new industrial plants
BY 1939, what % of the german workforce were women, compared to england? and what does this show?
37.3% of the German workforce were women - in comparison to 26.4% in the same year in England
- Rearmament prioritised above all else, even ideological ideals
how did the nazis attempt to achieve self-sufficiency?
made artificial substitutes (petrol from coal, coffee from acorns, makeup from flour)
what is the Determinist viewpoint of big business in Nazism?
- claims that Nazi rise to power and policies in power was a reflection of the agenda of big businesses
- they supported Hitler because they wanted to use his power to control the masses to increase support for their own interests.
- hoped that Hitler would destroy the political left and suppress the trade union movement, giving them freedom to operate how they liked.
what is the Compliant viewpoint of big business in Nazism?
- whilst big businesses weren’t enthusiastic about Weimar, this didn’t necessarily translate into support for Hitler.
- Many big businesses only supported the Nazis as an alternative to communism, and would have preferred a more moderate conservative government.
- Nazis focus on Autarky meant that they were increasingly isolated in Europe which created huge problems for some export-based industries, removing their ability to trade.
- Where big business interests and the Nazis political goals clashed, the Nazis prioritise their own political achievements
major industrial managers’ wages increased by what % under nazis?
50%
what were some limitations of nazi economic policy?
- four year plan not achieved in its entirety
- Autarky was not achieved
- conditions for workers did not improve - workers total income never reached the levels that it had been prior to Wall St Crash.
- success of Hitler’s economic policies and plans primarily limited by its own aggressive foreign policy, which brought a major war earlier than had been intended.
what did the failure to achieve autarky mean for the economy?
- shortage of raw materials and from 1938
- shortage of labour needed to increase the amount of raw materials being produced.
how did Nazi workers’ experiences vary?
depending on which industry they worked in
- industries directly connected to the war effort worked longer hours, for similar pay
- industries not directly connected to the war struggled to thrive, often placing their workers on short time contracts.
- almost all workers experienced a drop in dispensable income and ability to buy food, which became more scarce and more expensive as the war went on.
