Nazi Economy

Question 1

What were Hitlers 4 key aims in relation to the economy when Nazis came in to power in 1933?

Answer 1

• Ensure a reasonable standard of living for public support
• Provide resources for rearmament to ensure military might
• Move towards Autarky to guarantee strength and independence
• Provide resources for major architectural projects

Question 2

Why did Hitler want to replace the capitalist elite?

Answer 2

They were too weak and obsessed with money to pursue German greatness. Didn’t want an economic revolution but a spiritual revolution for the collective good and to end capitalism.

Question 3

What was the “Guns or Butter” debate?

Answer 3

Goering famously argued that Germans could not have both so they should choose guns, as guns make a nation strong whereas butter makes a nation fat

Question 4

What is Autarky?

Answer 4

Economically self-sufficient

Question 5

What is Command Economy?

Answer 5

Economy that responds to the command of the government

Question 6

What is Ersatz?

Answer 6

Product made and used as a substitute but is typically inferior

Question 7

What is the DAF?

Answer 7

Nazi trade union

Question 8

What is the RAD?

Answer 8

Reich labour service (for the unemployed who are then conscripted into forced labour)

Question 9

What is the KDF?

Answer 9

Strength through joy, brought benefits of culture and leisure to the working class (holidays etc)

Question 10

Why was the Four Year Plan created?

Answer 10

Germany’s armed forces would be ready for war in 4 years

Germany’s economy would achieve autarky in 4 years

Question 11

What are the strengths and weaknesses with leadership and control with the 4 Year Plan?

Answer 11

Strength: Could fund and take over businesses for a command economy

Weakness: Goering appointed as plenipotentiary for the 4 Year Plan whole Schact remained minister for economics. This caused conflict between Schact about his import control policies and Goering synthesising Ersatz

Question 12

What are strengths and weaknesses with Raw Materials in the 4 Year Plan?

Answer 12

Strengths: Coal production increased from 320 million tonnes in 1936 to 381 in 1938. Steel production went up by 4 million.

Weaknesses: In 2 years Germany only produced 20% if the artificial oil that they needed

Question 13

What were strengths and weaknesses of Ersatz materials in the 4 Year Plan?

Answer 13

Strength: Increase in Ersatz rubber by 500%

Weakness: Expensive to make and would have been easier to just import

Question 14

Strengths and weaknesses of Rearmament in the 4 Year Plan

Answer 14

Strength: Created an advanced army by 1939

Weaknesses: Caused inflation. Goering refused to produce production lines creating a lack of steel. Would not be ready for war until 1945

Question 15

What was the impact on living standards for Industrial workers?

Answer 15

• Lost our due to destruction of the union movement
• Poor pay and conditions
• Hitler wanted workers under strict control so they couldn’t organise themselves
• Hours rose from 43 a week (1933) to 47 a week (1939)

Question 16

What was the impact on living standards for women workers?

Answer 16

• More employment for women
• 11.4 million female workers (1933) rose to 14.8 (1939)
• received half men’s wage and many women forced into prostitution

Question 17

What was the impact on living standards for middle class and the mittlestand?

Answer 17

• Small businesses benefitted form the destruction of the unions
• Increase in employment
• Stores lost out due to emphasis on rearmament
• Big ban on textiles
• Couldn’t pay high wages

Question 18

What was the impact on living standards for farmers?

Answer 18

• Called the purest of all Aryans
• Created reforms in farming to protect their rights
• Food prices controlled
• Reich Entail Farm Law
• State took a cut from farms and wages became harder to pay

Question 19

Impact on living standards for industrialists

Answer 19

• Benefitted from the destruction of the trade unions
• Made Workers work for longer for less pay
• Worked close to Nazis and benefitted from making munitions

Question 20

Impact of War: Administrative Chaos

Answer 20

• Rivalries In Government led to chaos in economy
• Little co-ordination between: 4 Year Plan Organisation, Fritz Todts Ministry of Munitions, Ministry of Economics and the SS labour camps
• Military leaders squabbled over scarce resources
• Goering was given too many roles to stop others gaining power but couldn’t manage

Question 21

Impact of War: Priorities

Answer 21

• Lack if clear priorities
• Final Solution was expensive and required great labour
• Military constantly updating their weapons
• Kept producing consumer goods to keep morale high but wasted money
• Didn’t bring as many women into work as possible
• Killed Jews, Gypsies etc instead of making them work

Question 22

Impact on war: Impossible Plans

Answer 22

• Hitler wanted to expand the size of Luftwaffe to 21,000 but it never exceeded 5,000
• Couldn’t extract significant quantities of oil
• Big international banks were unwilling to fund a country already in great debt

Question 23

How did Speer tackle economic problems?

Answer 23

• Sent back non essential goods
• Scaped post war project plans
• Created 3 shifts a day for more work
• Put half a million women into work
• Repaired bombed factories
• Temporary accommodation for the Workers

Question 24

What happened to the production of supplies for war when Speer took over the economy?

Answer 24

Ammunition output rose by 97%
Tank production rose by 25%
Arms production increased by 60%

Question 25

What were some key reasons for the ‘Economic Downfall’?

Answer 25

• Couldn’t produces enough armaments or good for the army
• Hitler in his bunker a lot meant they couldn’t sustain communication
• Factories with valuable ammunition were destroyed by air raids and were too expensive to replace

Question 26

What was unemployment in 1936?

Answer 26

Less than 2 million

Question 27

What did Speer set up to boost War production?

Answer 27

Central planning board