How did Hitker's economic polciies preare Gemrany for war? Flashcards
Intro- When Hitler came into power, unemployent was already..?
decreased from 5.7 millioon to 3.6 m >Hitler reduced it further to 1.6m by 1934, which shows success of his economic policy
Broad sense of economic recovery>feeling of confidence
Funding for rearment programme (Schacts mefo bills) which allowed Germany to prepare for war
Hitler’s early ecnomic policies did or didn’t fail to prepare Germany for war?- Schact
Schact- established the Rentenamrk>stabilised currency>allowed Germany to trade with other coutries>increase exports
Mefo Bills (credit notes) which were used by the governemt to fund the increased governemt expenditure>stimuakte demand (delayed real payment)
Schact’s comapny>gave out bills to services supplying the governemtn (pay them back in 5 years)
This funded half the reamrnent programme and disguised military expenditure
Howver, althoguh high gov.expen needed at first, it put severe straisn on economy>reuslted in budget deficit>actually a need to decrease akrms expenditure
Judgenent: Although the high gov. expenditure reuslted in economic problems it was necessary to reflate the economy.
Hiterl’s early eocnomic pllicies- 4-year plan?
-aimed to amke Germany ready for war within 4 years
-aimed to achive total autarky- make Germany self-sufficent in food/production
-wanted to lose its dependance on other countries
Failed: still depended on 1/3 foreign impts for raw materials like iron/oil by 1939
took Germany 6 tonnes fo coal t prodcue 1 tonne of oil, howver di manage to exploit Austrian steel and worth remebering Hitelr meant it as a series of plans for a war mid-1940s not a specific one- so they were dodomed to fail (shown by Hitler outlined vast programmes which went beyond the demands of Blitreig)
Hitler’s early economic policies: guns or butter?
Easrly as 1935- Htielr was putting resources into rearmament priogramems- contributed to balance-of-payemtn problems
guns or butter- which referred to putting money into arms works instead of supplying consumer goods like food>debate as to how far Hiter was concenened about this
Mason- need to supply both guns and buitter- hindered rearmanet priogramme>strain on it stopped them from demanding sacrifice from german people>led to social unrest>pushed GErmany into war
Overy- distinguish between 1933-36 (impotant to increase gov.epe>stimualte demand and after 1936- remarment had to be a priority. State controls were used to prevent infaltion
Judgement; The problem was that thedecision for a war caused a crisis as local shrot-term expected wr became a long-term total war which the economy wasn’t ready for.
Later economic policies when Britian/France unexpectadly declared war..? (change of aopproach)
-Germany had taken over vital resources (Austria/Czech) during appeasment -allooed Hitler to build up for war
Delcaration of war by Britian/France in 1939 wasn’t expected
reuslted in Hitler hasty chaneg of appraoch- changed to immediate economic mobisilation>this policy coukdn’t remedy major deficiences of war material
Battle of Britian- couldn’t reaplce planes lost
poor co-ordination/confusion between branches)
For 2 years- military requiremtd didn’t meet economy- USSR 2/3 of troops with inadequte equipment- primarily due to organsiation-lots of boides with differne jobs- produced confusion
Judgement : Worht remebring during Blitreig peroid, Gemrny enjoyed man successes due to resources they ahd exploted previously
Failure of hsi economic poicies came to light later in..?
Dec 1941- Goering’s massive beaucratci strucutre ahd faied
Dec 1942- organsition became more effective- state contorls relxed?mroe exports>increased output during a massivw Allied bombing camopign (pridcton rose form 1942-44)- Overy- example of remarkabel achievments of Speer- but still didn’t use reosuces from conquered kands efficently enough
bombing resulted in resources being diverted to building of ant-aricraft installations
Judgement: If not for bombing, Germany might have out-produced USA/USSR so it was not until military isuation detoriated rpaidly in 1945 (Germany was beign starved of resources- Alleis encirclement) Hitler’s economic policies had proved uneffective
Conclusion..?
I think the incrweased war production (during Allied bombing), down to Speer’s achievments did help GErmany a lot but by then it was too late and by 1945 the economy ahd failed Germany.
