Nazi economy Flashcards
what was the RAD?
The reich labour service- set up schemes for unemployed men and women, providing manual work and basic food & accommodation
what else was created to reduce unemployment?
autobahn building schemes which created work in the road industry and improved communications.
How many employees did road-building schemes have from 1933-35?
approximately 84,000
were measures to reduce unemployment effective?
unemployment fell from 14% in 1930 to 7.4% in 1936. However, it must be recognised that the Nazi’s manipulated stats, with jews being excluded from the civil service and other industries as well as women
What did Hugenburg implement to make German produce cheaper?
import tarrifs
how did Schacht try and improve agriculture?
-stopped banks re-possessing land from farmers in debt
-made margarine manufacturers incorporate butter in production to maintain farming
What was the Reich food estate (RNS)?
it regulated food production and distribution of farm produce, as well as setting prices and farmers wages
Were Schacht’s measures effective in improving agriculture?
-In 1928 German farmers provided 68% of farm produce, this increased to 80% by 1934
-agricultural wages increased by 41%
-Yet, not everyone welcomed gov control of food prices and production
How was economic policy towards businesses influenced by the mittlestand?
Nazi propaganda discouraged using department stores since the Mittlestand had supported Hitler
What was the name of the Nazi trade union created may 6, 1933?
The DAF
what was the effect of Schacht’s policies on businesses?
-Large businesses suffered due to the law for the protection of retail trade (1933), which prevented the building of new department stores & the expansion of existing ones.
-Some department stores made 80% less in 1934 than they had in 1929
How did the creation of the DAF affect workers?
it made it possible for big business to exploit workers, since they could set their own working conditions.
How did Schacht’s ‘new plan’ impact international trade?
it made trade treaties with other countries such as Hungary and Yugoslavia that involved paying goods rather than money for imports (bilateral trade)
Were Schacht’s policies on international trade successful?
By 1935 Schacht had to choose between food and raw material imports. This was a significant crisis as increasing imports was against Nazi policy
What were the aims of Hermann Goerings Second 4 year plan 1936-39?
1) increase production in agriculture and raw materials, eg steel & iron, partly through esratz to reduce the financial cost of imports
2) Massively expand armament
3)Autarky
Give examples of economic success under the second ‘Four Year Plan’
- Jam production trebled
-By 1939, the Reichwerke (a state owned mining operation) was the largest industrial enterprise in Europe.
-production of ersatz goods such as ‘buna’
What was the ‘Guns v Butter’ debate?
It characterised Germany’s constant problem reconciling the needs of rearmament and the needs of the people for food, fuel and other necessities
how was propaganda influenced by the Guns v butter debate?
propaganda aimed to educate people to consume less meat and fats
Was Goering’s second FYP ultimately successful?
-Although the plan was partially successful in terms of rearmament as massive rearmament occurred, autarky was never achieved
-still relied on 1/3 of raw material imports
Describe German armament production from 1939-41?
-Between 1939-41 German military expenditure doubled
-However, armament production remained very low, Germanys airforce only increased from 8290 (1939) to 10,780 (1941) where as Britain’s trebled in the same period to 21,000
- the USSR produced 2600 more tanks
Why was economic mobilisation slow during the war economy?
due to poor co-ordination and inefficiency. There was lots of political infighting between leading Nazi’s and several different agencies worked against each other.
Who succeeded Fritz Todt ( head of ministry of armaments), and how were his powers extended?
-Albert speer was appointed as minister of munitions in 1942
-in 1943 Speer’s powers were extended when he was given responsibility for all industry and raw materials as minister of armaments and production
What changes did Speer make?
-Established a central planning board to co-ordinate economic organisation
-prevented conscription of skilled workers into the military
-Encouraged employment of women in arms factories
-utilised concentration camp prisoners as workers (although productivity of slave labourers 40-60% lower)
What changes did the central planning board make?
closed smaller factories to concentrate production in large ones & standardised factory machinery to maximise production techniques
what examples are there that Speer’s reforms were successful?
1) Ammunition production increased by 97%
2) Tank production increased by 25%
3)Arms production increased by 59%
4) From 1942-1944, war production trebled
Why did Speer’s war economy ultimately fail?
-state remained chaotic, with some Gaultier & SS acting against economic efficiency
-effects of Anglo-American bombing reduced the capacity for economic expansion as industry was targeted and Germans had to divert crucial resources towards defensive measures
How were the living standards of industrial workers improved?
-Unemployment fell considerably and wages rose (approx. 1% a year)
-strength through Joy workers programme gave loans, medical care, and offered subsidies holidays
How were the living standards of industrial workers worsened?
-Many of the jobs that were created were badly paid
-Living standards were falling (more workers than ever were eating rye bread and potatoes)
-TU’s abolished; complained about poor housing, and low wages. strikers and absenteeism were common
How were the living standards of farmer’s improved?
-Income increased by 41%
-By 1937 wages recovered to 1929 levels
-increased demand for German farm produce
How were the living standards of farmer’s worsened?
-German agriculture remained dependent on imports and suffered from workers moving to cities
- The reich entail farm law (1933), meant that more efficient agriculture was held back as farmers couldn’t borrow money to expand/modernise
How were the living standards of the mittlestand improved?
-small businesses benefitted as sub-contractors for arms companies
- Many could also buy Jewish rivals companies cheaply as part of the ‘Aryanisation’ programme
How were the living standards of the mittlestand worsened?
the middle-classes resented the higher taxes, compulsory donations and shortages of raw materials and labour
