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