Nazi Economy Flashcards
What were Hitlers 4 key aims in relation to the economy when Nazis came in to power in 1933?
- 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
Why did Hitler want to replace the capitalist elite?
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.
What was the “Guns or Butter” debate?
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
What is Autarky?
Economically self-sufficient
What is Command Economy?
Economy that responds to the command of the government
What is Ersatz?
Product made and used as a substitute but is typically inferior
What is the DAF?
Nazi trade union
What is the RAD?
Reich labour service (for the unemployed who are then conscripted into forced labour)
What is the KDF?
Strength through joy, brought benefits of culture and leisure to the working class (holidays etc)
Why was the Four Year Plan created?
Germany’s armed forces would be ready for war in 4 years
Germany’s economy would achieve autarky in 4 years
What are the strengths and weaknesses with leadership and control with the 4 Year Plan?
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
What are strengths and weaknesses with Raw Materials in the 4 Year Plan?
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
What were strengths and weaknesses of Ersatz materials in the 4 Year Plan?
Strength: Increase in Ersatz rubber by 500%
Weakness: Expensive to make and would have been easier to just import
Strengths and weaknesses of Rearmament in the 4 Year Plan
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
What was the impact on living standards for Industrial workers?
- 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)
What was the impact on living standards for women workers?
- 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
What was the impact on living standards for middle class and the mittlestand?
- 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
What was the impact on living standards for farmers?
- 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
Impact on living standards for industrialists
- 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
Impact of War: Administrative Chaos
- 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
Impact of War: Priorities
- 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
Impact on war: Impossible Plans
- 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
How did Speer tackle economic problems?
- 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
What happened to the production of supplies for war when Speer took over the economy?
Ammunition output rose by 97%
Tank production rose by 25%
Arms production increased by 60%
What were some key reasons for the ‘Economic Downfall’?
- 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
What was unemployment in 1936?
Less than 2 million
What did Speer set up to boost War production?
Central planning board
