Nazi economic Policy Flashcards
What was Hitler’s short term aims when he became Chancellor?
-Promise to solve state of economy, including that of unemployment
What was Hitler’s long term aims when he became chancellor?
-create a war economy “Wehrwirtschaft”
What was the battle for work scheme?
-attempt to reduce unemployment
=state funded projects to get people to work
e.g Between 1933-1938 2000 miles of Autobahns built
e.g 1935 Reich Labour Service (6 months labour farming or construction for young unemployed men)
In spring 1933 how many Germans were unemployed?
6 million (in reality, closer to 8 million)
by August 1939 what was unemployment at in Germany?
100,000
= a so called “economic miracle”
What was the role of Hjalmar Schacht?
1933= President of Reichsbank
1934= Minister of Economics
gave tax concessions and grants to particular groups to increase consumer demand
controlled wages and prices to avoid high inflation
rearmament through use of mefo bills to conceal payments
=Known as the New Deal
How successful was the New Deal?
Unemployment in 1946 down to 7.4% compared to 25% in 1933
however….. (was it really)
During this period there had been a world economic recovery from 1933
furthermore, 1933 marriage Loan Scheme meant some women voluntarily gave up jobs
as well as 1935 Reich labour Scheme being compulsory work for only 6 months
= still “INVISIBLE UNEMPLOYED”
When was the New Plan?
1934
What was the New Plan?
Germany in trade deficit and balance of payment crisis due to increase imports and exporters struggling on the tariff on German goods
-Schacht’s response in sep 1934= New Plan
-importers needed government clearance before buying overseas
-controls on access to foreign currency
-Gov gave priority to imports vital for rearmament
=crisis solved at expense of food supply= “guns and butter” not possible
When was the four year plan?
1936
What was the four year plan?
=Goering took full control of the economy which had become focused on rearmament
Schacht heavily protested and the costs and loss of “free market” growth but was ignored and later resigned as Minister of Economics in 1937
How much money was going on rearmament between 1937-1938?
10 billion rentenmarks
How much money was spent on rearmament between 1938-1939?
17 billion rentenmarks
What was the concept of autarky?
A self-sufficient Germany
How was Autarky to be achieved?
-A managed economy, controls on labour supply, prices, raw materials and foreign exchange
-grants for farmers to grow more food
-focus on home produced raw materials
-new state-owed industrial plants
-increased production of iron, steel and chemicals
How did Propaganda present Autarky as?
A battle in which the whole community had to participate
Campaigns to buy only German goods etc= produced a patriotic duty to all German citizens
Hitler youth collected scrap metal
Speeches and radio broadcasts claimed that the battle for work had been won by 1936
What were the Results of the four year plan?
-targets not met
by 1939 1/3 rd of Germany’s raw materials were imported
trade deficit still rose to RM 42 million by 1938
= By 1939 economy under serve strain
However, economy had been successful enough to conquer Poland and West Europe……. so arguably in fact main priority achieved? As in Hitler’s theory, the remaining resources could be found in the conquered territory so autarky no longer required How did th
How did the Industrial Elites paly a role in building the Nazi economy ?
Nazi economic policy = required support form “big businesses”
as Schacht’s approach to recovery relied on cooperation of major industries, however once the Four Year plan began industrial elites lost influence over the party though, they did still benefit finically
state some leading figures in the steel industry who gave support to the nazis
Gustav krupp and Fritz Thyssen
How did the Nazi’s reward economic cooperation by large companies?
=rewarded by government contracts and large profits
e.g IG Farben chemical industry leader 1935-1939 profited from 71 million to 240 million RM
State an example of a company that failed to cooperate with Nazi regime and what happened to them
The Reich Association of Germany Industry (RDI)protested about the potential impact of Nazi policies on export industries = company split up and subsumed by Nazi party economic departments
State some examples of successful companies in the automobile industry
- Henry Ford antisemitic and supported of the Nazi
-Volkswagen “People’s car” (however not so affordable nor accessible as everyone claimed)
=By 1939 Germany was not the mechanised, mobile society that Hitler hoped it would be
What happened in regards to agriculture?
Peasants and small farmers had been attracted to the Nazi promise of financial aid and the Nazi ideological belief of “blood and soli”
Improvements:
-many farmers debts and mortgages written off
-1933 Reich Entailed Farm Law gave security to occupiers of medium- sized farms to preserve “the farming community as the blood source of the German people”
-1933 Reich Food estate
=supervised every aspect of agricultural production and distribution
Why did the Reich Entailed Farm Law cause resentment?
Made it much harder to divide land for inheritance
From 128 to 1938 how much did agricultural production increase by?
20%
The Nazi economic miracle between 1933-1939 was merely a propaganda myth. Assess the validity of this view.
-Propaganda had at this point become so embedded in society, that even if any short or long term economic policy was unsuccessful, the propaganda ministry would portray it as an “economic policy” and it would be readily accepted by the German society without any contrary belief.
Unsuccessful:
Battle for work
1935 Reich Labour scheme
New Plan
Arguably successful/ an economic miracle in short term
Concept of Autarky
creation of a Wehrwirtscahft
Successful invasion of Austria/ Poland
Economic Miracle
Result of economic cooperation by big industrialist, arguably helped to achieve an “economic miracle”= but in reality they were doing it entirely for their own gain and not truly for economic growth or prosperity
