Nazis and the economy from 1933-45 Flashcards
What were the 3 sections of Nazis economic plans?
Recovery led by Hjalmar Schacht
Rearmament led by Hermann Goering
War led by Albert Speer
What was the First 4-year plan
aim of Autarky (self sufficiency)
–> targets of unemployment and agriculture
First 4 year plan: creating employment
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
First 4 year plan: How did Nazis use govt funding for new jobs?
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
First 4 year plan: creating employment using RAD
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
First 4 year plan: How did Hitler encourage industrialist to expand production?
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
First 4 year plan: what did Hjalmar Schacht do?
–> 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
First 4 year plan: What is deficit financing and mefo bills?
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
First 4 year plan: What was Germany’s balance of trade problem?
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
First 4 year plan: To tackle balance of trade, what did Schacht devise?
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)
First 4 year plan: creating employment STATISTICS
1930 unemployed 3 million and 14% of work force unemployed
1936 unemployed 1.6 million and only 7.4% of workforce unemployed
First 4 year plan: agriculture Alfred Hugenburg
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
First 4 year plan: agriculture Richard Darré
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
First 4 year plan: agriculture success stat?
1928 German farmers provided 68% of all farm produce
1934 German farmers provided 80% of all farm produce
First 4 year plan: 1933 Law for Protection of Retail Trade?
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