Nazi economy Flashcards
3 main methods of economic recovery
- Reich labour service
- Cutting taxes on small businesses, families, hevay industry
- New plan 1934
How much was invested in the Reich labour service
1 billion
How much did the labour service decease unemployment
1932-36 5 million–> 2 million
Drawback of the reich labour service
Expensive
increase debt
harder to fulfil rearmamanet
Positive and negative impacts of cutting taxes to help recovery
Stimulated economy by giving more spending money
- production rose
wages rose 7%
Increased imports
Balance of trade crisis
When was the New plan and what was it?
1934
Protectionist policies eg import quotas
Impact of the new plan
Solves balance of trade crisis
Very expensive as more arms spending
Standard of living lowered
What was the 4 year plan
Top priorities = Rearmament, autarky in food/ industrial production
to prepare for war
successes of the 4 year plan (3)
Coal/ steel production increased
Self-sufficient in bread, sugar, potatoes
Increased production of ersatz by 500%
Failures of 4 year plan (5)
Domestic steel production more expensive than imported steel
Mopre efficient to import
Creatong ersatz rubber expensive and required more miners than Germany had
Only produced 20% of artificial oil required 1939
aircraft production decreased 1st year as Goering refused to use assembly lines
Couldnt deliver amount of steel commanded by military
How many holidays did KdF provide
10 million
women living standards
-increased maternity benefits
-1933 law for reduction of unemployment- marriage loans for women who gave up their jobs
war: more work opportunities due to labour shortage
BUT 1/2 mans wage, forced into prostitution
Industrialists living standards
-benefitted from no trade unions- low wages, high hpours
-Gov contracts to produce military equiptment
-some helped develop nazi policie eg chemical companies
Industrial workers living standards (4)
X No trade unions- working hours increased, pay decreased
X Nazi Trade union couldnt negotiate
X Pay didnt reach pre-depression levels
X Better off in weiamr
Farmers living standrads
Reforms to protect farmers
- Price controls
-Family farms couldn’t be bought by big landowners
-Price controls reduced profits