Nazi Economy Flashcards
What was the economic situation when Nazis took control
Economy had shrunk by 40% with 8 mil unemployed
Were reparations still being payed when the Nazis came into power
No, Brüning said that Germany could not pay at a conference in Lausanne, and the allies agreed that the depression made it impossible to keep payments up so they cancelled them. However Germany still owed to the countries they independently borrowed from
When did Germany fail to pay its debts to the USA and why was it now as big a problem for the Nazis as opposed to any previous governments?
They failed to pay USAs debts in 1934 and trade with the USA collapsed. However this didn’t matter much to the Nazis as they were not intending to continue with foreign trade. They made the new plan that allowed Germany to reduce imports and exchange in goods with other countries
What was the new plan and who was in charge of it
Schacht was given dictatorial powers over the economy in which he introduced the new plan in sept 1934. This allowed the govt to control all aspects of trade, tariffs, capital and currency exchange in hopes to reduce the amount of imports that Germany was doing. The government, from this point forward, decided which imports were allowed or to be prohibited.
What imports were cut with the new plan
Raw cotton and wool but metals were permitted at the same level to satisfy the demands on heavy industry
What was the aim of the 4 year plan and when was it first introduced?
Aim was to achieve autarky as soon as possible. Most important targets were agriculture and unemployment. It was announced on the 1 January 1933
How did Nazis create employment and seem to reduce unemployment figures.
Firstly businesses were already employing people again by the time the Nazis came into to power as the depression was getting better. They also manipulated the unemployed statistics as they removed Jews and prohibited them from working in the civil service and applying for unemployment relief. This took them off the unemployment stats. Married women who left work or were sacked were also not counted in the employment statistics. Reich Labour service (RAD) were work schemes for unemployed people. Paying well below minimum wages and extremely basic living necessities. This took around 400 00p of the unemployment register as well as conscription that removed all 18-25 yr olds. 100 000 in 1933 - >1.4m In 1939
How did autobahns help the Nazis
Nazis used propaganda to stress how the autobahns ended unemployment and that these new roads could move goods around the country as fast as possible
What did Alfred Hugenburg do to manage agriculture
Agriculture was necessary for Autakry, so during the first 4 year plan there were agricultural reforms. The minister of agriculture, Alfred Hugenburg, increased import tariffs on agricultural produce, which made German produce cheaper. He banned banks that would repossess farms owned by farmer in debt so farming could continue. Alfred Hugenburg resigned in may 1933
Who replaced Alfred Hugenburg and what did he do?
Richard Darre, who introduced the Reich food estate. This regulated the food production and distribution of farm produce. It also settled prices and farm wages. The fine to not follow these conditions would go up to 100 000 RM. They also made work schemes so that young women on farms as well as building projects.
What are the stats for food that farmers produced before the nazi regime then during it?
1928 - farmers provided around 68% of all produce for the country
1934 - it was 80%
How did the Nazis manage businesses and workers?
Businesses such as I.G. Farben supported Nazis whereas those who were more dependant on exports were less happy. Some stores made 80% less in 1934 than in 1929 as the 1933 law for the protection of retail trade stopped the building of new stores and the ability to expand. During weimar, trade unions caused lots of hassle, disputing for wages. This caused much loss of working days. Businesses expected Hitler to crack down on trade unions and some hoped for better jobs and a better pay. So on 1 may 1933 Hitler made a socialist workers festival which was an official holiday. 2nd may Hitler banned all parties leaving only 1, the DAF. Joingin it was voluntary but not being a member made it incredibly difficult to obtain work. The DAF allowed businesses to exploit thier workers more as they could set their own working conditions
What was the problem with the new plan and the trade between south Eastern European countries of 1935 - 1936
They were starting to demand cash rather than trade goods for goods, such as Bulgaria who were demanding cash now instead of goods for their oil. By this time Germany was still not fully self sufficient and raw imported materials were still vitally needed. Food also needed to still be imported as there was a growing shortage of fats and meats so in 1935 schacht had to choose between food or raw materials to import.
What is command economy?
Where one state, not business or agriculture, decides what and how much to produce
When did goering replace schacht and what did he do?
4 sept 1936 - he intraduced the new 4 year plan which focused heavily on Autarky and the preparation for the war. His office for the 4 year plan had 6 departments, raw material production, agriculture production, distribution, labor, prices, and foreign exchange matters. Matierals that’s Germany couldn’t produce themselves were replaced with substitute products and synthetic alternatives. For example rubber was replaced with Buna. Substitute products were also exptemely inefficient as 6 tons of coal would make only 1 ton oil. However it was essential for rearmament so it was prioritised
