Nazi Germany - Economy Flashcards
Describe a problem with the German economy 1933-36
unemployment
- mass long-term unemployment
- approximately 8 million were unemployed in 1933
Describe a problem with the German economy 1933-36
Agriculture
- Agriculture was still in recession
- Farmers wages & incomes fell sharply - many were forced to sell off farms
Describe a problem with the German economy 1933-36
Businesses
- The Great Depression led many businesses to cut production or collapse
- 50,000 businesses went bankrupt
- Union actions & disputes meant the loss of millions of working days
Describe a problem with the German economy 1933-36
International Trade
- Demand for German products abroad was low
- Germany could not afford to pay for imports & preferred to exchange goods
Which 3 actions did the Nazis take against unemployment
- creating jobs
- RAD
- road-building labour schemes
Explain an action the Nazis took against unemployment
-creating jobs
- they created work
- & encouraged businesses to offer temporary work
- for the long-term unemployed
Explain an action the Nazis took against unemployment
-RAD
- RAD (Reich Labour Service)
- set up schemes for unemployed men & women
- providing manual work with basic food/ accommodation
Explain an action the Nazis took against unemployment
-Road building schemes
- created work in both the road industry and other industries like truck building
- which improved communications, like the movement of raw materials and produce
- these industries had 84,000 employees between 1933-35
Which 4 actions did the Nazis take to mitigate issues in agriculture
- import tariffs
- banks
- margarine
- Reich Food Estate (RNS)
Explain an action the Nazis took to mitigate issues in agriculture
-import tariffs
- increased import tariffs on agricultural products making german produce cheaper
Explain an action the Nazis took to mitigate issues in agriculture
-banks
- banks were banned from repossessing farms from farmers in debt,
- to maintain farming produce
Explain an action the Nazis took to mitigate issues in agriculture
-margarine
-made margarine manufacturers put German farmer butter in their product
Explain an action the Nazis took to mitigate issues in agriculture
-Reich Food Estate (RNS)
- regulated food production
- the distribution of farm produce
- set prices & farmers wages
- the RNS would fine companies not following its guidelines
Which 2 actions did the Nazis take to mitigate issues amongst businesses
-aid to small businesses
-Trade Unions
Explain an action the Nazis took to mitigate issues amongst businesses
-aid to small businesses
- The Law of the Protection of retail trade
- banned the building of new stores & the expansion of existing ones
- Nazi propaganda against department stores
Explain an action the Nazis took to mitigate issues amongst businesses
-trade unions
- In response to 1.2 billion workers days lost,
- A singular trade union was announced in 1926 called the German Labour Front (DAF)
Explain an action the Nazis took to aid International Trade
Hjalmar Schact’s “New Plan”
What were the Key features of Hjalmar Schacht’s “New Plan”
- Trade treaties with other countries like Hungary & Yugoslavia which involved exchanging goods & not paying for imports
- Cutting consumption, without introducing unpopular rationing
When was Hjalmar Schacht finance minister
July 1933 to November 1937
Why was Hjalmar Schacht sacked in November 1937
He wasn’t pushing towards autarky enough
How successfully was the problem of unemployment fixed by the Nazis
- Unemployed: 1930 - 14%
1936 - 7.4% - Jews being banned from the civil service and other occupations, which were not included in employment stats
- Women were also discouraged from work, & not included in stats
How successfully were the problems of agriculture fixed by the Nazis
- 1928: German farmers provided 68% of farm produce
- 1934: 80%
- showing a movement towards autarky
- BUT, not everyone welcomed government control of food prices & production
How successfully were the problems of businesses fixed by the Nazis
large businesses
- large businesses which were reliant on exports suffered because of the Law of the Protection of Retail Trade
- In 1934, some retail stores made 80% less than they had in 1929
When was the Law for the Protection of Retail Trade implemented
May 1933
How successfully were the problems of businesses fixed by the Nazis
DAF
- The DAF made it possible for big businesses to exploit workers:
- working hours went up to 33-37 hours a week
How successfully was the problems of international trade fixed by the Nazis
- By 1935, conscription to the military & rearmament was announced
- Schacht wanted to keep imports as low as possible,
- but had to choose between food imports and weaponry
Define Autarky
economic self-sufficiency without the need to rely on imports in any area of life
Define Ersatz
substitutes or replacements of goods, often of an inferior quality
What did the Nazis promise in their election campaign?
immediate economic recovery
What economic issues did the Nazis not have to deal with
-the issue of reparations, as Bruning said they couldn’t not pay in 1932
What was agreed at the conference in Lausanne in 1932 & why?
The allies agreed that because of the Depression, reparation payments would be impossible so Germany didn’t have to pay
What economic problems did the Nazis still face
reparations on foreign loans - in particular, US debts
Name some of the solutions to unemployment having risen by 30%
- huge public spending schemes
- Autobahn - 2,500 miles of motorway
- RAD
- ban on trade unions
What were the successes of Schacht’s first New ‘4 year’ plan by 1936
- unemployment had fallen to 1.5 million
- industrial production increased by 60% since 1933
- GNP had grown by 40%
When was Schacht’s first New ‘4 year’ plan
1934
How were living standards of Industrial workers benefitted under the Nazis
- unemployment fell considerably and wages rose by around 1% a year
- ‘Strength Through Joy’ workers programme gave loans, medical care & extra food for ‘suitable’ mothers
- Other workers took advantage of subsidised holidays & could save up for a Volkswagen car
How were living standards of Industrial workers worsened under the Nazis
- many new jobs were badly paid so the rise in wages was due to longer hours worked
- living standards were falling - rye bread & potatoe diet very common
- trade unions were abolished, soworkers complained about poor housing and low wages,
- strikes, indiscipline and absenteeism were regular occurrences
How were living standards of farmers benefitted under the Nazis
- By 1937 wages for farmers recovered to their 1929 level, income increasing by 41%, as demand for farm products increased
How were living standards of farmers worsened under the Nazis
- German agriculture remained dependent on imports & suffered from urbanisation
- The Reich entail Farm Law, 1933 mean that more efficient agriculture was held back as farmers could not borrow money to expand or modernise
How were living standards of the middle class benefitted under the Nazis
- small businesses benefitted as sub-scontractors for arms companies
- Many could also buy up Jewish rivals companies cheaply as part of the ‘Aryanisation’ programme
How were living standards of the middle class worsened under the Nazis
- the middle classes resented the:
- higher taxes
- compulsory donations
- and shortages of raw materials & labour
How were living standards of the undesirables benefitted under the Nazis
no benefits
How were living standards of the undesirables worsened under the Nazis
- In 1939 all doctors, nurses and midwives had to report any babies or children under three that showed signs of physical & mental disabilities
- In October 1939, the T4 campaigns began to get rid of disabled children
- By1940, this was extended to hospitals and institutions for the old
How many children died under the T4 campaign
Over 700,000 people died under this programme
Why was the Office of the Four-Year Plan, not managing war production well?
- the office of the 4 year plan
- various parts of the SS
- the ministry of economics
- ministry of armaments & production
- all had responsibility for production, so they could not effectively co-ordinate:
- while at local level, the powerful Gauletiers often inferred with economic plans
Who was Minister for A&M from February 1940
Fritz Todt
Who replaced Todt as Armaments Minister
Albert Speers
How were Todt’s powers extended
- given responsibility for all industry & raw materials as minister for armament & production
What did Speer do to improve Industrial production
- established a central planning board to coordinate economic organization,
- while also giving industry more freedom to develop
What changes did the Central Planning Board make
- closed down smaller factories to concentrate production in large factories
- standardized factory machinery for mass production
Name 3 reasons why the economy was over stretched
- labour shortages
- ally bombing
- loss of gas & electric power
Evidence the Nazi War economy was ineffective
-aims of total war
The Nazi economy failed to meet the demands of total war and the cost of that failure was the economic collapse of 1945.
Evidence the Nazi War economy was ineffective
-inefficient coordination
- The war economy was not effectively coordinated
- some local party bosses acted against the interests of economic efficiency
Evidence the Nazi War economy was ineffective
-airforce
- Despite wholesale mobilisation of the German economy, the results were disappointingly low.
- Germany’s airforce only increased from 8,290 (1939)
- to 10,780 (1941).
- In contrast, Britain’s airforce had trebled to 20,100.
Evidence the Nazi War economy was ineffective
-bombing
- Allied bombing reduced the capacity of the German economy to expand further
- It destroyed their industries and communication
Evidence the Nazi War economy was ineffective
-raw materials
- Shortages of raw materials such as coal and oil was a problem:
- the production of ersatz materials did not fully resolve this
- and these products were often poor quality
Evidence the Nazi War economy was ineffective
-workforce
- The Nazis relied on foreign workers who were poorly treated and often malnourished.
- As a result, productivity was 60-80% lower than that of the average German worker.
Evidence the Nazi War economy was effective
-planning
- Hitler issued a series of war economy decrees in December 1939
- which outlined his plans for every possible aspect of war production
- e.g. submarines and aircraft.
Evidence the Nazi War economy was effective
-production
- By the second half of 1944,
- there had been more than a threefold increase in German war production since 1942
Evidence the Nazi War economy was effective
-effective strategies
- Food rationing was introduced at the start of the war
- and the German labour force saw a huge increase.
- By the summer of 1941, 55% of the workforce was involved in war related projects
Evidence the Nazi War economy was effective
-Albert Speer’s introduction
- After Albert Speer was put in charge of the economy in 1942, there was a significant improvement.
- Ammunition production increased by 97%,
- Amunitions productivity per worker increased by 60%
Evidence the Nazi War economy was effective
-arms spending
German military spending doubled between 1939-41.
Evidence the Nazi War economy was effective
-recruiting of workers
- Albert Speer increased the labour force by recruiting women,
- using concentration camp prisoners as labour
- and preventing conscription of skilled workers.
Why was the government in a state of disorganisation and chaos during the war?
- The SS’ power began to rise,
- whilst Hitler withdrew further from direct control of the government
What evidence is there that Hitler was a weak dictator in wartime
- Hitler considered himself a military expert, but he was far too interfering in USSR military matters
- Goering’s decision making was trusted by Hitler, but had many flaws
Who was face of the Nazi regime during the war
Goebbels
How did Goebbels do as the face of the Nazi Regime during the war
- Following the German defeat at Stalingrad, he gave a publicized speech calling for total war
- Orchestrated the response to the 1944 Bomb Plot
How had the Nazi regime become more lawless by 1944
The SS
-The SS were entrusted with running Nazi-occupied territories in Eastern Europe & instituted brutal & exploitative policies un these areas
How had the Nazi regime become more lawless by 1944
The Waffen SS
- -The Waffen SS contained,
- 900,000 people who were responsible for the most extreme aspects of Nazi Policy,
- the mass killings of European Jews & the systems of death camps
Between 1939-42, morale in Germany was relatively ______
high
Explain the reasons why morale was relatively high in Germany between 1939-42
-food rationing
- while meat was rationed, it remained at the reasonable level of 500g per week
- until April 1942
- but increased again in October
Explain the reasons why morale was relatively high in Germany between 1939-42
-victories
-Early victories in Poland, Norway, Denmark, Luxembourg, Belgium & France helped to maintain morale
Explain the reasons why morale was relatively high in Germany between 1939-42
-propaganda
-propaganda may also have had an impact, although intelligence reports indicate that support for the war was variable
After 1942, morale in Germany became increasingly _____________
damaged/low
Evidence for morale in Germany becoming increasingly low after 1942
- increased criticism of Hitler
- increased number of casualties on the war front
- non-conformity began to emerge
What were the reasons for morale in Germany becoming increasingly low after 1942
-Difficult…
working conditions
What were the reasons for morale in Germany becoming increasingly low after 1942
-shortages
By 1945, increasing food shortages left many people hungry
What were the reasons for morale in Germany becoming increasingly low after 1942
-bombing
-Allied bombing further weakened morale, and resulted in shortage in clothing & a complete unavailability of sweets & magazines
What were the reasons for morale in Germany becoming increasingly low after 1942
-soviets
-the soviet advance from 1943, worried the German public who feared Russian Invasion
What were the reasons for morale in Germany becoming increasingly low after 1942
-failed missions
- the failure of the V1 & V2 (bombs) in a 1944 rocket campaign
- against Southern Eastern England & allied ports like Antwerp
By 1943, allied bombing now targeted….
civilian areas
By 1943, allied bombing now targeted civilian areas.
These air raids seriously…
hindered German war effort & gave the allies a significant advantage
Evidence that allied bombing by 1943 hindered German war effort & gave the allies a significant advantage
The Germans were forced to redeploy aircraft back to Germany
& in total, the allies killed 305,000 people & destroyed 2 million German homes
While allied bombing did not deliver a _________ against Germany, they did…
-decisive blow
-contribute significantly to German defeat in the sense that they damaged morale in German cities
When was the Second Four-Year Plan
1936-39
What were the 3 main objectives of the Second Four-Year Plan
- expanding remarment
- autarky & a command economy
- producing ersatz products
Give an example of an ersatz product
rubber —> replaced by synthetic Buna
It took 6 tonnes of coal (needed for many industries & home heating), to produce __________
1 tonne of synthetic fuel
What was the “Guns & Butter” debate
- the constant problem of reconciling the needs of rearmament & the needs of people like food, fuel & other necessities
Regarding the “Guns & Butter” debate, Hitler constantly said in public & in meetings….
that rearmament was the most important concern, whilst he simultaneously thought it was vital for the Nazi state to have the support of the people
How did the Nazis attempt to solve the “Guns & Butter” debate
- they tried to re-educate people to consume less, particularly less meat & fat.
- propaganda aimed at changing eating habits & lowering food consumption to be more patriotic
What was the Nazis’ election promise
‘work & bread’
With the Nazi’s election promise of ‘work & bread’, they needed to…
fulfil this mostly to remain popular
Evidence the 2nd Four Year Plan was a success
-propaganda
-propaganda –> convincing people to switch from meat to fish
Evidence the 2nd Four Year Plan was a success
-rearmament
- rearmament had been achieved without pushing up prices & without provoking widespread public protest at goods factories, which would otherwise be making e.g toys, in short supply
Evidence the 2nd Four Year Plan was a success
-output target
-went above their target for producing explosives (300,000)
Evidence the 2nd Four Year Plan was a failure
-autarky
-imports only reduced by 3% - they did not achieve autarky
Evidence the 2nd Four Year Plan was a failure
-industries
-major industries failed to produce the target output established in the 4 year Plan e.g steel
Evidence the 2nd Four Year Plan was a failure
-propaganda
-propaganda was only mildly effective
Evidence the 2nd Four Year Plan was a failure
-war economy
-country not as ready for war as it would have been if the Nazis had been able to focus entirely on war protection without also keeping the food supply topped up with imports
Give the statistics which suggest output of steel fell short
1942 - 20,480
target - 24,500
Why was the second 4 Year Plan initiated
to reorientate the conomy towards war & autarky
What were the 6 departments of the second 4 year plan
- raw material production
- agricultural production
- distribution
- labour
- prices
- foreign exchange methods
