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Nazi Germany - A Level Democracy and Dictatorship in Germany 1919-1963 Unit 2 > How far did the German economy recover by 1939? > Flashcards

How far did the German economy recover by 1939? Flashcards

1
Q

What does Autarky mean?

A

The aim for self-sufficiency in the production of food and raw materials, especially when at war.

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2
Q

Why was the banking system a priority for Schacht’s economic policies?

A
  • It had been weakened by the Wall Street Crash and depression.
  • The banks also controlled the amount of debt people had.
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3
Q

Why did Schact take control of interest rates?

A
  • If interest rates remained high it would add to debt the government had to pay off.
  • By keeping interest rates low they wouldn’t need to pay off as much debt although, it would also mean that people wouldn’t make money on their savings.
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4
Q

Why were local authority debts prioritised?

A

Because if they were paid off over a longer period of time. Then money would be available to invest in local services which would satisfy the German population.

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5
Q

Who was Hjalmar Schacht?

A

President of the Reichsbank who directed German economic policy - responsible for the Rentenmark.

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6
Q

What was Hjalmar Schacht a part of?

A

The economic elite and not a member of Nazi Party.

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7
Q

What did Hjalmar Schacht believe?

A

In steady growth and a stable currency.

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8
Q

When was the worst of the Depression over by?

A

1933.

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9
Q

What was assistance for farming and small businesses in Schacht’s economic policies designed to do?

A

Stimulate growth and reward loyal supporters.

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10
Q

Why were tariffs put on imported goods?

A

To protect German farmers.

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11
Q

What did the Reich Food Estate offer to support what?

A

Subsidies to support agriculture.

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12
Q

What did the Reich Entailed Farm Law do?

A

Debts were reduced offering land ownership security (debts were reduced by tax concessions and lower interest rates).

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13
Q

What else did Schacht’s economic policy assistance for farming and small businesses do?

A
  • Allowances to encourage rehiring of domestic servants.
  • Grants for house repairs.
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14
Q

What does tariff mean?

A

A customs duty or tax levied on imports of merchandise goods.

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15
Q

What does subsidies mean?

A

A type of government expenditure for individuals and households, as well as businesses with the aim of stabilizing the economy.

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16
Q

Who was state investment started under?

A

Von Papen.

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17
Q

What was the Reich Labour Service (RAD) in Schacht’s economic policies?

A
  • Employ 18-25yr olds (members not counted in unemployment figures.)
  • Involved 6 months of unpaid work, mainly in military construction projects.
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18
Q

When was the compulsory military conscription?

A

1935.

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19
Q

(5 points)

What else did state investment involve in Schacht’s economic policies?

A
  • Reforestation.
  • Land reclamation.
  • Motorisation (developing a vehicle industry).
  • Infrastructure.
  • Building projects (housing sector and public buildings).
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20
Q

What was the impact of state investment under Schacht from 1933-1936?

A

Triple public investment & increase government expenditure by 70%.

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21
Q

What was the impact of state investment under Schacht on employment?

A

Increase in employment:

  • Jan 1932 = 6 million.
  • 1936 = 1.6 million.
  • By 1936 the economic recovery was well advanced and then emphasis began to turn even more towards rearmament.
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22
Q

What was the aim of Bilateral Treaties under Schacht’s New Plan of 1934?

A

Promote trade and save foreign exchange, mainly with SE European countries.

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23
Q

How did Schacht improve state investment?

A

Kept taxes relatively high and encouraged private savings in state savings banks.

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24
Q

What were the Mefo Bills under Schacht’s New Plan of 1934?

A

Special government money bills (like a credit note) they were guaranteed by the govt. and were held for up to 5 years at 4% interest.

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25
Q

What was the Bilateral Treaties under Schacht’s New Plan of 1934?

A
  • Barter agreements were set up rather than imports being paid with money.
  • The Soviet Union agreement was set up in 1935.
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26
Q

What was the Regulation of the Reichsmark currency under Schacht’s New Plan of 1934?

A

Germany agreed to purchase raw materials from all countries it traded with if Reichsmarks were used to buy back German goods ~ protected their income.

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27
Q

What is a benefit of Mefo Bills under Schacht’s New Plan of 1934?

A

They disguised and delayed govt. spending.

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28
Q

From 1935 onwards, Hitler became impatient for what and what did this lead to?

A

Rearmament and to be war ready in 4-5 years much faster than businessmen and economists had expected ~ economic debate: guns vs. butter.

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29
Q

Which 2 men were in charge of Nazi economic policy?

A

Schacht and Goring.

30
Q

Can you name the 4 main aims?

A
  • Reduce unemployment.
  • Autarky.
  • Rearmament.
  • Get Germany out of recession.
31
Q

(4 points)

What did the New Plan of 1934 under Schacht involve?

A
  • Strict government controls over spending and to reduce imports.
  • Reduce imports.
  • Protecting German currency.
  • Mefo bills - credit note.
32
Q

What did the Four Year Plan of 1936 under Goring involve?

A
  • Autarky.
  • Rearmament.
33
Q

By 1936, unemployment was down to…

(Impacts of Schacht’s New Plan, 1934)

A

1.5 million from 6 million in 1932 ~ successful.

34
Q

Who had been removed from government positions and not included in unemployment figures to allow what?

(Impacts of Schacht’s New Plan, 1934)

A
  • Women and Jews ~ negative.
  • Women/Jews/conscripts were not included in unemployment figures ~ negative
35
Q

Industrial production had increased by what under Schacht’s New Plan in 1934?

A

60% ~ positive.

36
Q

Gross National Product (GNP) had grown by what under Schacht’s New Plan in 1934?

A

40% ~ positive.

37
Q

Government spending rose by what due to the demand for rearmament imports?

(Impacts of Schacht’s New Plan, 1934)

A

70% ~ negative.

38
Q

What did more raw materials being imported than exported lead to?

(Impacts of Schacht’s New Plan, 1934)

A

Money shortages ~ negative.

39
Q

What did prioritising heavy industry mean?

(Impacts of Schacht’s New Plan, 1934)

A

Demands for rearmament meant that there was limited income for the country ~ negative.

40
Q

How successful was Schacht’s New Plan of 1934?

A

Not very successful.

41
Q

What did Göring came into conflict with Schacht lead to?

(Impact of Göring’s Four Year Plan, 1936)

A

Schacht’s resignation in 1937 ~ negative.

42
Q

What did Göring become?

(Impact of Göring’s Four Year Plan, 1936)

A

An economic dictator ~ negative.

43
Q

Why was The Four Year Plan was not fully supported by business leaders?

(Impact of Göring’s Four Year Plan, 1936)

A

Believed that there should be some rearmament but not at the expense of the standard of living in Germany ~ negative.

44
Q

What was there an increase in?

(Impact of Göring’s Four Year Plan, 1936)

A

Agricultural and industrial production as well as ersatz products ~ positive.

45
Q

What was the IG Farben producing?

(Impact of Göring’s Four Year Plan, 1936)

A

Chemicals ~ positive.

46
Q

What was the Siemens?

(Impact of Göring’s Four Year Plan, 1936)

A

Electrical production ~ positive.

47
Q

What was the Daimler-Benz?

(Impact of Göring’s Four Year Plan, 1936)

A

Transport and aircraft ~ positive.

48
Q

Who’s influence reduced as the economy came under political control?

(Impact of Göring’s Four Year Plan, 1936)

A

Business leaders.

49
Q

Why was Industrial production negative even through production rose?

(Impact of Göring’s Four Year Plan, 1936)

A

Targets = not met and foreign supplies were relied upon by the outbreak of war in 1939 ~ not ready for total war.

50
Q

What does Ersatz mean?

A

Substitute.

51
Q

How successful was Goring’s Four Year Plan of 1936?

A

Successful in rearmament but failed in autarky.

52
Q

(3 points)

How were the workers negatively affected by Nazi policies?

(Other than DAF - German Labour Front and working hours)

A
  • Working class consumption - desirable goods e.g. tropical fruits less affordable.
  • Workers were also expected to pay tax, insurance and DAF contributions.
  • Index of wages decreased (wages in one year) - 1928 = 125, 1938 = 106.
53
Q

What were banned in 1933 and replaced with German Labour Front (DAF) led by Robert Ley?

A

Trade Unions.

54
Q

How much did membership of the German Labour Front (DAF) increase from 1933-1939 and what did this mean for workers?

A
  • 5 million in 1933 to 22 million by 1939.
  • Workers = firmly under their own control ~ could deal with strike action harshly and removed the rights of the workers to protest.
55
Q

How much had working hours increase from 1933-1939 and what did this mean for workers?

A

43 hours in 1933 to 47 hours in 1939 ~ workers were put under pressure to work overtime.

56
Q

How did the average management salaries growth and working class consumption positively affect workers?

A
  • Average management salaries grew from RM3700 to RM5420 between 1934 and 1938. Profits were up from 2.8% to 6.6% over the same period.
  • Working class consumption - basic goods more affordable, e.g. bread and butter.
57
Q

How much had unemployment reduced to in 1938?

Who weren’t included in unemployment figures?

A

0.5mil

Women, unemployed men working in forced labour schemes and Jews.

58
Q

What was the Beauty of Labour (SDA), incorporated by the DAF?

A

A working conditions subsection ~ were responsible for providing cleaner working environments, meals, exercise and smoking-free rooms.

59
Q

What did the DAF’s Strength through Joy (KDF) provide?

A

Recreational activities to millions of German workers.

These included:

  • Cultural trips.
  • Education.
  • Sports facilities.
  • Holidays.
60
Q

In 1934, how many workers were going on SDF holidays and how much had this risen to by 1939?

A

1934 = 2.3 million workers were going on KDF holidays. By 1939 this had risen to 10.3 million.

61
Q

Who had been the biggest supporters of the Nazis and why?

A

Peasants and Farmers ~ due to the claims that they would provide relief after the economic problems plaguing the sector since hyperinflation.

62
Q

What did the Nazis do to support the aim to restore the rural population’s prominence:

What were written off and what were small farmers given?

A
  • Farm debts and mortgages were written off and small farmers were given low interest rates.
63
Q

What did the Reich Entailed Farm Act of 1933 do to support the Nazis’ aims to restore the rural population’s prominence?

A

Forbade any division of land ~ ensure farms were of an efficient size for production ~ farmers = pass on their estate to one child ~ providing for their remaining children = difficult.

64
Q

What did the Reich Food Estate of 1933 do to support the Nazis’ aims to restore the rural population’s prominence?

A

Supervised every aspect of food production, specifically prices and working wages ~ regulations were stifling.

65
Q

What did the government maintain tariffs on and what did this do to support the Nazis’ aims to restore the rural population’s prominence?

A

Imported goods to encourage a reduction in imports.

66
Q

At first farmers benefited from an increase in prices which meant that their incomes also improved, why was there growing disillusionment by 1936?

A

Was the result of increasing rural to urban migration which was the result of promises of higher wages.

67
Q

What were landowners fearful of?

A

Nazi plans to interfere with their land ownership.

68
Q

Nazis were unconcerned with landowners’ activities and didn’t threaten the economic interests of their large estates.

Why did this change in 1945?

A

The east of Germany was occupied by the Soviets ~ large estates were broken up to fit in with collectivisation.

69
Q

Who were the largest sector of society to vote for the Nazis between 1930-33 and why?

A

Mittelstand (Middle Class) ~ swayed by the propaganda posters ~ hoped to benefit from the Nazi regime after a woeful 1920s which was dominated by big businesses.

70
Q

What did the Mittelstand benefit from and what did this lead to?

A

Confiscation of Jewish businesses ~ gaining low interest rate loans and the banning of new department stores, often Jewish-owned.

71
Q

Why did the Mittelstand continue to decline?

A

Couldn’t compete with the costs of larger businesses ~ made worse by Nazi economic policy focus on big businesses for rearmament

72
Q

Who were trading regulations introduced to protect?

A

Small craftsmen.

Nazi Germany - A Level Democracy and Dictatorship in Germany 1919-1963 Unit 2 (5 decks)

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