Nazi economy

Question 1

Aims

Answer 1

-short term: improve things quickly for Germans
-long term: create a war economy

Question 2

Schacht’s actions

Answer 2

-Minister of Economics 1934
-tax concessions to particular groups
-controlled wages and prices
-Rearmament through mefo-bills
-‘new plan’ 1934

Question 3

How was unemployment decreased?

Answer 3

-State-funded projects: autobahns, housing etc
-1933-38 2000 miles of autobahn built
-rearmament
-loans and tax relief to priv companies and increased industrial production
-Reich Labour Service 1935= 6 months of labour for young unemployed men

Question 4

unemployment stats

Answer 4

-1933= 25%
-1936= 7.4%
-1939= 0.5%

Question 5

inaccuracy of stats

Answer 5

-world economic recovery
-1933 marriage loan scheme (women give up jobs)
-jews not counted
-official figure of 1.6mill unemployed in 1936 should be over 3 mill

Question 6

Mefo Bills

Answer 6

-these could be exchanged for cash at Reichsbank
-incentives to defer asking for payments by 4% interest per annum if they kept for full 5 yrs
-rearmament started 1935 without funds

Question 7

New Plan

Answer 7

-1934
-Schacht
-controls on access to foreign currency, trade agreements w/ Balkans & South America for food/raw materials paid in Reichsmarks
-priority for rearmament over food supply

Question 8

Aims of 4 year plan

Answer 8

-Goring 1936
-make Ger ready for war in 4 years
-rearmament and autarky
-research/ production of substitute products e.g. rubber
-New state owned industrial plants e.g. Hermann Goring Steelworks
-production of commodities e.g. steel, iron, chemicals

Question 9

4 year plan (general info and result)

Answer 9

-autarky= self sufficiency in raw materials/ food
-propaganda=persuade to buy only ger goods, 1937 campaign to collect scrap metal
-results= didn’t match propaganda claims, 1939 Ger still imported 1/3 raw materials, 1939 economy strained