Nazi Economy Flashcards
What where Hitlers 4 aims for the Nazi economy?
.Ensure reasonable living standard in order to maintain public support
.Provide resources for rearmament to ensure German military might
.Move towards autarky (self sufficiency)
.Provide resources for major civic and architectural projects
What did Nazi’s believe about the economy?
.Secondary issue not important
.Did not like materialism
.corporations where nationalised
.Extensive development for insurance of old age
What did the Nazi’s do during the economic miracle?
.Tax cuts and government Gants designed to reduce spending and lead to greater employment.
.The government set up schemes that employs people to work on government projects.
What areas did the Nazi’s cut in tax?
.Farming
.Small business
.Heavy industry
What was the Reinhardt programme?
.1000 million for public work schemes such as; road building, bridge repairs and the construction of Germany’s waterways.
What was unemployment like in the Nazi years?
The Nazi’s work creation scheme created 2.8 million jobs between 1933 - 1934
What are Mefo Bills?
.issues with rearming Germany due to the treaty of versailles
.Schacht came up with the solution of using GmbH a private company that would place orders for military goods with Mefo bills which
Where essentially IOU’s that allowed government to rearm and delay payment therefore hiding the rearmament.
.Mefo bills finance one fifth of all military spending between 1933 - 1939.
Whats the new plan?
.Designed to solve trade crisis.
.Import quotes on non military goods, caused trade to come back into balance by 1935.
.Traded with emerging economies in Eastern Europe and South America, due Germany having the better economy they could
Get a better deal with these countries.
What was the 1935 - 36 crisis?
.poor harvest
.Had to import food to keep prices down.
.Butter was rationed and pork and ham prices went up by 30% by 1936.
.Hitler allowed food imports but also began the process of creating a command economy.
What is a command economy?
.Government sets the price and production for businesses
Instead fo the market.
What was the four year plan?
.The German armed forces would be ready for war in approximately 4 years.
.The German economy would achieve autarky (self sufficiency) in 4 years
.More government control
.set the priorities for industry, issued production targets and had the power
To nationalise business not meeting targets.
How was Goering associated with the four year plan?
.Goering was head of the four year plan however Schacht was still economics minister
This created huge conflict.
.Schacht resigned in 1937 due to Goering’s growing power.
.Economic policy became more radical.
What where the success of the four year plan?
Coal production increased from 319.7 million tonnes in 1936 to 380.9 million tonnes in 1938.
.Bread/sugar and potatoes became self sufficient.
What where the failures of the four year plan?
.Aircraft production decreased
.living standards fell
.inflation rose
What was Nazi Germany like for the working class?
.Working week increased from 43 hours too 45 from 1932 - 1933
.Average hourly wage in 1939 were 2 per cent lower then 1932 level.
.workers had no unions to speak up for them.
What was Nazi Germany like for women workers?
.Women in the work force increased in 1933 from 11.4 million to 14.8M in 1939.
.Women earned half that of a man.
What was Nazi Germany like for business?
.Did well with destruction of trade unions
.Small businesses couldn’t compete with big businesses with huge government contracts.
What was Nazi Germany like for farmers?
Protected by government
.Government introduced price controls which lowered profits and took a cut.
What was the impact of war?
.Chaotic environment to endure competition, but created chaos.
.Hitler set overexqagerted aims that where not realistic, e.g he wanted 21,000 planes and only got 5000.
.Goebbels spent money on films that should have otherwise been spent on the army e.g. Kohlberg.
How did Speer change economic policies towards total war?
.Speer appointed as new economic power
.Encourage employment of women
.Prevented conscription of skilled workers
.Created central planning board for the economy
.Standardised munitions
What where the success of Speer?
.Ammunition production increased by 97%
.Total arms production increased by 59%
.Tank production increased by 25%
What was the name of the Nazi Trade Union founded in 1933?
DAF (German Labour Front)
Who was made economics minister in 1934?
What was the name of his programme to rebuild the economy?
Hjalmar Schacht.
The New Plan
Give two ways that the Nazis managed to reduce unemployment..
Public works schemes
RAD
Re-introduce conscription
Remove “undesirables” from the Civil Service
Which organisation was placed in charge of agriculture and promoting the interests of German farmers?
RNS (Reich Food Estate)
Two key aims of the Four Year Plan was to be ready for war and to become economically self sufficient. What is the correct name for this goal of self sufficiency?
autarky
Many of Germany’s Four Year Plan targets were not met. Name two resources they lacked which prevented them from achieving these targets.
Any two of the following: Oil Steel Labour Rubber
Despite a general fall in average real wages in the Nazi years, many Germans felt better off because of holidays, entertainments and sports provided by which organisation?
KDF
What is the name given to the synthetic substances the regime created in order to meet its production targets?
Ersatz
Speer was put in charge of the wartime economy in 1942. What did he set up to co-ordinate economic organisation?
Central Planning Board
Despite the Nazi’s ideology the number of women in work actually increased during the 1930’s. How many women were in work by 1939?
14.8 million
