Entirety of History Flashcards
What were the competing economic agencies?
4 Year Plan Organisation
Ministry Of Munitions
Ministry Of Economics
SS Economic and Commerical Enterprises
Were Nazis coordinated in their government?
No, (Broszat) officials would compete for economic resources, with Goebbels, Himmler, the Military, Todt etc, and disagreed on methods
Were Hitler’s economic ambitions feasible?
No, he placed too much faith in the natural superiority of the Germans to come up with unachievable solutions
What were the problems with the German Armaments?
It was inefficiently organised and struggled to meet the demands of total war. Although well made, was too costly
Who was Armaments Minister in 1942 and what was their role in the economy?
Albert Speer, became a dominiant figure in the economy and was bale to rationalise war production much more efficiently. In March 1942, Hitler issued a decree directing that arms production was the top economic priority and giving Speer extensive powers over the economy
What board coordinated the economy?
Central Planning Board
What did Speer change?
Established the Central Planning Board to coordiante the economy
Introduced modern production lines to speed up production
Prevented skilled workers from being conscripted
Gave industrialists priority over Nazi members in production decision making
Encouraged employment of women
Established the Armaments Commission to oversee standardisation of armaments
Exploited slave labour
What else did Hitler want other than Rearmament?
Living Standards to maintain and to avoid consumer standards
What effect did rearmament have on the economy
Struggled to maintain consumer goods and services
Living standards fell compared with pre-depression Germany, the amount of meat, fish, eggs, tropical fruit and beer all fell sharply between 1927 and 1937
Compared to during the depression manys living standards improved sharply
Depended on social class, regional location and especially cultural/ethnic identity
What was the T4 campaign?
Euthanise disabled babies and children under the age of 3 in 1939
Extended in 1940 to hospitals and institutions for the old, terminally ill or those with mental health disorders
Around 70,000 died under the T4 programme
What happened to “Asocials”
Reeducated at Hashude (a confined housing estate of 78 families)
What was the treatment like of Jews, Roma and other ethnic minorities in peacetime?
Forbid employment in state positions and certain professions (medicine, law.) Overtime these measures became more radical culminating in confiscation of property and deportation to the East during WW2.
Did living standards rise from Nazi policies to reduce unemployment
Briefly, real time wages briefly rose. Strength Through Joy and Beauty Of Labour led to some benefits such as cheap holidays, loans, medical care cleaner, quieter factories etc. as well as the chance to save for a new car (VW Beetle)
However, wages were regulated after Goerings 4 year plans
Shortage of consumer goods
Real wages shrank necessitating the working of overtime, made worse during the war
Working hours increased over time and the war made big demands of workers
What were farmers life like in Nazi Germany?
Propaganda prioritised the German Farmer/Peasant as the purest member of the “volksgemeinschaft”
Reich Entailed Farm Law attempted to preserve the faming community as the blood source of all German people.” It prevented the breakup of farms less than 125 hectares into smaller units and protected smaller farmers from debt and repossession.
However, although this carried some benefits, inheritance was an issue and they could not sell their land to larger farmers
The Reich Food Estate did guarantee prices for farm produce but also forced farmers into producing to government rules and regulations. This created significant resentment
The class became disillusioned, high expectations but poor outcomes
What was middle class life like in Nazi Germany
Major industrialists generally benefitted from Nazi economic policies, especially during the war.
Likes the destruction of trade unions and the new-found ability to keep wages low and control working hours
Some major industrialists objected to Nazi interference however as well as the nationalisation of some industries (steel for example). Others like and fed directly into the 4 Year Plan, I.G. Farben worked closely with the Nazi
Lower Middle Class did less well. They were overlooked in favour of big business although many appreciated the destruction of the unions and economic revival pre WW2
Who was the economics Minister from 1949-1963?
Ludwig Erhard
In what year was the Investment Aid Law passed which provided government subsidies for industrial development?
The Construction Law
In what year was the Collective Bargaining Law on Industrial Relations passed, giving unions legal rights to bargain on behalf of their members, take industrial action, and allow workers to participate in the decision making process in the workplace (co-determination?
1949
Which act of 1952 provided compensation to the victims of wartime bombing from a 5% tax rise on individuals with a net worth of more than 5000DM?
Equalisation of Burdens Act
In what year was the Pensions Act which provided a significant rise in pensions passed?
1957
Which 1955 Law broke up Cartels and Monopolies
The Anti-Trust Law
What were the key problems to the German Economy postwar?
Physical destruction of property and infrastructure
Homelessness
A worthless currency
What did the western zones do to fix the key problems to the German Economy postwar?
Currency and Tax reforms and ended price controls
Marshall aid provided by the USA also helped fund improvements in infrastructure and industrial development
What was prioritised by Adenauer and Erhard between 1949 and 1955?
Unemployment, inflation, rebuilding projects and the integration of millions of Germans from eastern Europe.
What war helped German Exports and why?
Korean War. This created a need for South Korean war supplies and these were met mostly by the USA which switched some production away from consumer goods. West Germany was not allowed to produce war supplies for South Korea but was able to fill some gaps in consumer goods exports, from the USA
Was unemployment and inflation beginning to fall or rise in 1950?
Rise
What economic model was Erhard a key proponent of?
Social Market model
What was a social market model?
Middle Way between unregulated free market and government direction towards social reform and welfare spending on the other.
Businesses were allowed to develop independently but the government intervened to protect the vulnerable and redistribute the wealth through taxation and public spending.
What characterised the German Economic Miracle
Rising Exports
High Industrial Production
Shrinking Unemployment
High levels of Private Savings
High Private Consumption
Rising Profits
The rise in production of the Volkswagen Beetle
What laws and policies helped bring about the economic miracle
Work creation schemes (1950)
The Investment Aid Law of 1952
The 1950 Construction Law
The 1952 Equalisation of Burdens Act
The 1957 Pensions Act
The 1949 Collective Bargaining Law on Industrial Relations
The Anti Trust Law (1955)
Creation of the central bank (1957)
Reduction of trade tariffs through creation of the ECSC and EEC
What was the Investment Aid Law and what year was it created?
Provided government subsidies for industrial development, 1952
What was the Construction Law and what year was it created?
Gave government grants to the Lander and cities for large scale building projects, 1950
What was the Equalisation of Burdens Act and what year was it created?
Provided compensation to the victims of wartime bombing from a 5% tax rise on individuals with a net worth of more that 5000DM. This effectively redistributed wealth in the FDR, 1952
What was the Pension Act and what year was it created?
Provided for a signigicatnt rise in pension provision. Adenauer’s government supported welfare reform generally, 1957
Was was the Collective Bargaining Law on Industrial Relations and what year was it created?
Helped maintain positive relations between workers and employers. It gave trade unions legal rights to bargain on behalf of their members and to take industrial action. It also allowed workers to participate in the decision-making process in the workplace (co-determination,) 1949
What 2 bodies reduced trade tarriffs in postwar Germany?
ECSC and EEC
The FDR was a founder member of both the ECSC and the EEC based on greater European economic integration including monetary union (from 1978 onwards)
The FDR came to become the dominant member of the EEC through its strength as a trading nation and continued to press for closer European integration
