Nazis and the economy from 1933-45 Flashcards

1
Q

What were the 3 sections of Nazis economic plans?

A

Recovery led by Hjalmar Schacht
Rearmament led by Hermann Goering
War led by Albert Speer

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2
Q

What was the First 4-year plan

A

aim of Autarky (self sufficiency)
–> targets of unemployment and agriculture

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3
Q

First 4 year plan: creating employment

A

Depression created by Wall Street crash had hit its lowest and began to turn around:
–> businesses were employing people again so Nazis manipulated stats
1. Jewish people could no longer work 2. Women were discouraged from working 3. Nazis created work and businesses were encouraged to do the same
–> especially temporary work for long-term unemployed

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4
Q

First 4 year plan: How did Nazis use govt funding for new jobs?

A

They increased public expenditure and investment to stimulate consumer demand

Hitler extended the public work schemes initiated in 1932 especially building of motorways and homes

Tax concessions & special grants e.g. to newlyweds stimulated demand

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5
Q

First 4 year plan: creating employment using RAD

A

RAD (Reichsarbeitsdienst aka Reich labour service): schemes for unemployed men and women for manual work with less pay and very basic food/ accommodation in labour camps
–> 1934 took young off unemployment register & 1935 conscription removed all 19-25 year old males

road-building schemes tied to increased car and truck manufacture
–> created work and improved communications to move goods and raw materials more efficiently

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6
Q

First 4 year plan: How did Hitler encourage industrialist to expand production?

A

Hjalmar Schacht was appointed president of Reichsbank in March 1933 & August 1934 economics minister

Govt controlling prices and wages also helped finance increased public expenditure

subsidies for hiring more workers in private sectors even domestic servants

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7
Q

First 4 year plan: what did Hjalmar Schacht do?

A

–> reassured economic elite whom schacht had close links with
–> he used deficit financing to boost economy
–> used mefo bills to finance increased public expenditure without causing inflation
–> suspended debt payments

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8
Q

First 4 year plan: What is deficit financing and mefo bills?

A

Deficit financing: the practice in which a government spends more money than it receives as revenue, the difference being made up by borrowing or minting more money.

mefo bills:credit note that was used by govt to help fund increased expenditure on rearmament by delaying real payment

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9
Q

First 4 year plan: What was Germany’s balance of trade problem?

A

1934 revival of economy was causing concern due to balance of trade deficit (more imports than exports)
–> This was due to rising demand for consumer goods + rearmament led to increased demand for raw materials
–> Alongside these demands, world protectionism and high value of mark made it hard to increase exports)
- gold & foreign currency reserves were running low

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10
Q

First 4 year plan: To tackle balance of trade, what did Schacht devise?

A

New plan of 1934:
- gave govt strong powers to regulate imports through controlling allocation of foreign exchange
- series of bilateral trade agreements especially with Balkan states (provided much of raw material imports)

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11
Q

First 4 year plan: creating employment STATISTICS

A

1930 unemployed 3 million and 14% of work force unemployed

1936 unemployed 1.6 million and only 7.4% of workforce unemployed

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12
Q

First 4 year plan: agriculture Alfred Hugenburg

A

Minister of agriculture Alfred Hugenburg increased import tariffs on agricultural produce, making German produce cheaper
- banned banks repossessing farms from farmers in debt
- resigned May 1933

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13
Q

First 4 year plan: agriculture Richard Darré

A

Richard Darré took over and set up Reich FOOD estate RNS aka Reichsnährstand
- to regulate food production and distribution of farm produce as well as setting prices and farm wages
- could find people up to 100K RM for not conforming
-set up Reich agencies to control imports of farm produce
- WORK SCHEMES SENT PEOPLE ESP YOUNG WOMEN TO WORK ON FARMS

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14
Q

First 4 year plan: agriculture success stat?

A

1928 German farmers provided 68% of all farm produce
1934 German farmers provided 80% of all farm produce

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15
Q

First 4 year plan: 1933 Law for Protection of Retail Trade?

A

Businesses that depended on exports were less happy as they suffered
Retail stores made 80% less in 1934 than 1929 due to the law
Law: banned building of new stores and banned expansion of existing ones
–> nazis discouraged large department stores as smaller businesses supported them more

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16
Q

First 4 year plan: Crisis of 1935-36

A

Schacht’s shifting of Germany’s trade to south east Europe & his use of exchanging goods meant trade initially improved but:
- by 1835, they were demanding cash not goods
- Germany was still not completely self-sufficient and rearming + work creation scheme meant it still needed to import raw materials
- Germany still had to import food (shortages of fats and meat

17
Q

What is a command economy?

A

one where state not businesses or agriculture decides what and how much to produce:
- First 4 year plan ran from 1933 to 1936
- 1936 high foreign debts due to raw-material imports for rearmament and work creation

18
Q

Why was Schacht replaced before the 2nd 4 year plan?

A

Schacht was becoming highly cautious due to distortion of economy due to rearmament
- wanted t boost exports and slow rearmament
-Hitler wanted faster rearmament so he replaced Schacht with Goering on 4th September 1936

19
Q

What was the second 4 year plan?

A

tight focus on autarky and preparing for war
- Hermann Goering was in charge of the plan and had control of all business and agricultural production
-Office of 4 year plan had 6 departments: raw mat production, agricultural production, distribution, labour, prices & foreign exchange

20
Q

Second 4 year plan: alternative materials and the problems raised

A

Raw materials that Germany could not produce were replaced by synthetic alternatives (Ersatz products) e.g. rubber replaced by Buna

Lots of problems:
- new factories had to be built= slower results due to new processes and technical difficulties
- energy usage: 6 tonnes of coal to produce 1 tonne of synthetic fuel

21
Q

Second 4 year plan: alt materials stats

A

Buna in 1936 was only producing 700 tonnes but by 1942, it reached 96K tonnes, missing the target of 120K tonnes

Explosives increased from 18K tonnes 1936 to 300K in 1942

Apart from brown coal, no other material surpassed its 4 year target by 1942

22
Q

Second 4 year plan: Guns or butter?

A

Rearmament was Hitler’s main concern and believed that it was vital for nazi state to have support of all people (rationing= state is very unpopular)
- Too many people remembered rationing of WW1, starvation diets and shortages during Weimar years
- ‘Work and Bread’ slogan had to be deliered

23
Q

Nazi situation by 1939

A

tight control of economy (4 year plan targets were not always met but this was due to unrealistic targets)
- there were general improvements but these were not as great as hoped
- command economy made Nazis unpopular with several groups that had initially supported them like big industrialists
- rearmament had been achieved without pushing up prices or wages and without widespread public unrest

24
Q

War economy: blitzkrieg 1939-1941

A

Hitler responded to Britain & France’s declaration of war by ordering major economic mobilisation for war
–> It focuses on a single, coordinated, and intense blow against an enemy using mobile, manoeuvrable forces such as armoured tanks and air support.
–>Germany marched through Belgium, Holland and France
–> 22nd June 1940 France fell so Hitler needed U-boats and longer-ranged planes for his conquest of Britain
–> Operation of Barbarossa in June 1941 meant more tanks and armoured vehicles

25
Q

War economy: 1942 onwards

A

Failure of operation Barbarossa at Moscow in Dec 1941 changed nature of war: lightning war turned into an immense economic drain
–> Appointment of Albert Speer as minister of Armaments in Feb 1942 was when the economy was effectively organised

26
Q

War economy: Albert Speer and what he did

A

friend of Hitler who used his authority to create Central planning board

His co-ordination and rationalism meant more effectively exploited the potential of Germany’s resources
1. employed more women in arms factories
2. making effective use of conc camp prisoners
3. preventing skilled workers from being lost to conscription

27
Q

War economy: 1945 state

A

overstretched and badly affected by:
- Allied bombing which wiped factories, mines, towns
- loss of land that had prvided raw materials
- damage to gas, electricity and water supply
- sabotage by foreign woerkers

28
Q

Living conditions for Germans between 1933-1939

A

sharply divided between conformist ‘pure germans’ and ‘undesirable’ people
-18th August 1939 All doctors, nurses & midwives had to report any babies or children under 3 that showed signs of physical/mental disability

29
Q

Living conditions: what was the T4 programme

A
  • Oct 1939 Nazis mounted T4 campaign to get rid of disabled children (sent to ‘specialist clinics’ where the children were killed
  • Jan 1940 T4 was extended to other hospitals and institutions for old, mentally ill or chronically sick (Over 70K died)