Nazi economic policies, 1933-39 Flashcards
Was the German economy stable when the Nazis took over in 1933?
No - economy had shrunk by 40%
. 8 million people were unemployed
Who was a dominant figure when regarding the Nazi economic policy 1933-36?
Schacht
What did Schacht focus on?
Focused on job creation and stimulating growth through use of government policies and expenditure
How did the economy improve in the years 1933-36?
. Public investment tripled and government spending increased by 70%
. Public work schemes saw the construction of autobahns and houses
. Armament schemes - provided employment
What did Schacht design to pay for these measures?
The New Plan:
. Mefo Bills
. Establishing trade agreements with other countries such as Romania
Was Schacht’s New Plan successful?
Yes:
. Unemployment fell
. Production increased by 90% between 1932 and 36
What was however, the underlying problem that Schacht did not manage to solve?
Balance of payments - Germany was importing more than it exporting leaving it short in foreign currency
Why did Schacht and Hitler not get along?
Hitler wished to focus policies upon his main concern of building a fearsome military machine
What did Goering come up with to be able to fight a major war?
The Four Year Plan
What was autarky?
A self-sufficient economy - plan involved:
. increased production in agriculture and raw materials
. Ersatz - artificial materials - of worse quality
How did The Four Year Plan target Hitler’s policy of expansion?
Massive expansion of armaments was planned
Was the Four Year Plan successful?
Partially:
. Massive rearmament occurred and in some areas huge expansion was achieved
. Yet, autarky was not attained - by 1939 a third of raw materials were still imports
How were workers affected by Nazi policies?
.Job creation schemes - reduced unemployment
. Nazi’s benefit programmes improved working families’ standard of living
. Work hours increased
By 1938…
2.5 million families enjoyed increased benefits
