pre-war Nazi economy

Question 1

why was Hitler’s response to the Great Depression so important?

Answer 1

was a major reason why German voters switched to supporting extremists parties such as the Nazi party

Question 2

who was the President of the Reichsbank between 1933-39?

Answer 2

Hjalmer Schacht

Question 3

why was the appointment of Schacht so important?

Answer 3

it reassured the conservative elites that Hitler did not wish to abolish capitalism in Nazi Germany

Question 4

how did the Nazis take control of capital?

Answer 4

they set interests rates at a lower level

there was a rescheduling of large-scale debts of local authorities

Question 5

what did the Reich Entailed Farm Law outline?

Answer 5

debts were reduced by tax concessions for the small farmers

helped improve security of land ownership

BUT meant that farmers suffered greater state control

Question 6

who was the minister of agriculture?

Answer 6

Alfred Hugenberg

Question 7

between 1934 and 1938 how much tax relief did farmers receive?

Answer 7

60 million marks

Question 8

what measures did Hugenberg introduce?

Answer 8

• made German produce cheaper
• banned banks from repossessing farms from farmers who were in debt
• increased import tarrifs

Question 9

who set up the RNS?

Answer 9

Richard Darre

Question 10

what was the RNS?

Answer 10

was set up to regulate food production and the distribution of farm produce

controlled prices

Question 11

by 1934 how much of German produce was produced in German farms?

Answer 11

80%

Question 12

when was the Law to Reduce Unemployment renewed?

Answer 12

June 1933

Question 13

what was the Reichsarbeitsdienst?

Answer 13

the RAD created schemes for unemployed Germans which provided manual work

Question 14

what schemes did the RAD mainly promote?

Answer 14

reforestation
land reclamation
motorisation
building

Question 15

between 1933 and 1936 how much had public investment been increased by?

Answer 15

was tripled

Question 16

unemployed in 1932?

Answer 16

5.6 million

Question 17

unemployed in 1936?

Answer 17

1.6 million

Question 18

how was Schacht able to control the public deficit?

Answer 18

he maintained high taxes
he encouraged private savings

Question 19

how many km of autobahn were constructed under the Nazis?

Answer 19

3000km

Question 20

under the Nazi economy how much of German industry cartelised by 1936?

Answer 20

2/3

the Nazis heavily encouraged cartelisation

Question 21

when was Schacht’s ‘New Plan’ introduced?

Answer 21

September 1934

Question 22

what was included in Schacht’s ‘New Plan’?

Answer 22

• bilateral trade agreements
• the Reichsmark
• Mefo bills

Question 23

why did Schacht look to prioritise bilateral trade agreements?

Answer 23

they did not involve currency exchange as well as allowing Germany to create a foreign influene

Question 24

who did Germany look to mainly engage in bilateral agreements with?

Answer 24

the Balkans

Question 25

how did Schacht use the Reichsmark to boost it's value?

Answer 25

Germany would only agree to purchase raw materials from a foreign country as long as the country used the Reichsmark to buy goods back

Question 26

what were Mefo bills?

Answer 26

money bills which were issued by the government for goods

Question 27

how long were Mefo bills held and what happened to them over time

Answer 27

they gained interest of 4% per year spread across 5 years

Question 28

what were the reasons for the introduction of Mefo bills?

Answer 28

to disguise government spending on rearmament

Question 29

by 1936 how much had industrial growth increased?

Answer 29

60% from 1933

Question 30

how did the 1935/36 crisis lead to the Four-Year Plan?

Answer 30

Balkan nations started asking for money for raw materials that German imported Schacht did not want to borrow only alternative was to cut expenditure and press for higher production stressed the need for Autarky

Question 31

what is a command economy?

Answer 31

when the STATE decides what and how much to produce

Question 32

when was rearmament announced?

Answer 32

1936

Question 33

what did the Law for the Protection of Retail Trade do for small businesses?

Answer 33

stopped the building and expansion of new stores

Question 34

what was the only union in Nazi Germany?

Answer 34

the DAF

Question 35

did the DAF have any power?

Answer 35

no led by a high ranking Nazi in Ley strikes and lockouts were banned

Question 36

how many members of the DAF by 1939?

Answer 36

22 million

Question 37

how did Schacht hoped to deal with the rise in expenditure and an increase in the demands for rearmament?

Answer 37

he suggested a reduction in arms expenditure and the increase in industrial production to generate more foreign income through exports

Question 38

why was Schacht's proposed solution rejected by both the Nazi govt and the German Army?

Answer 38

rearmament was too large of a commitment for the German Army and it was seen to be the main purpose of the economy

Question 39

who was put in charge of the Second Four-Year Plan?

Answer 39

Hermann Goering

Question 40

what timeframe had Hitler outlined for Goering's command economy?

Answer 40

- the German armed forces were to be ready within 4 years - the German economy was to be ready for war within 4 years

Question 41

what were the main aims of the Second Four-Year Plan?

Answer 41

rearmament autarky

Question 42

by how much had Goering been instructed to increase armament production by?

Answer 42

300%

Question 43

what arms were in heavy production under Goering?

Answer 43

heavy bombers tanks submarines battleships

Question 44

how many submarines did the Navy hope to have by 1947?

Answer 44

249

Question 45

what was the total military expenditure by 1939?

Answer 45

RM 17.25 billion

Question 46

how did Goering look to increase production of raw materials?

Answer 46

raw materials which could not be produced were replaced by alternatives

Question 47

what was rubber replaced by?

Answer 47

Buna

Question 48

what was the raw material which was prioritised?

Answer 48

synthetic fuel

Question 49

what was the 'guns or butter' argument?

Answer 49

Hitler had two aims: - to maintain the support of the people - to rearm for war both required opposite policies when it came to the economy Hitler hoped to be able to balance the two needs BUT it turned out that guns had won the argument

Question 50

what was a substitute product called?

Answer 50

ersatz

Question 51

why did Schacht resign from his office in November 1937?

Answer 51

he was in massive disagreement with the Four-Year Plan

Question 52

how did propaganda try to reduce German food imports?

Answer 52

families were encouraged to eat less AS WELL AS eating alternatives such as fish and jam which were more available

Question 53

how did industrialists feel about the early Nazi economy?

Answer 53

they were in favour of the increased industry as well as the increased workforce and schemes available coal and steel industries massively benefited

Question 54

which industries suffered from the Second Four-Year Plan?

Answer 54

heavy industry German alternatives were used instead

Question 55

which industries benefitted from the Second Four-Year Plan?

Answer 55

electrics chemicals

Question 56

which company dominated the Nazi chemical industry and what did they produce?

Answer 56

IG Farben produced synthetic substitutes to rubber and oil

Question 57

which company was key in rearmament and transport under the Nazis?

Answer 57

Daimler-Benz produced trucks and aircrafts

Question 58

which company was key for the electrical industry under the Nazis?

Answer 58

Siemens

Question 59

was the Nazi regime ever economically prepared for war?

Answer 59

NO it should have focussed fully on war production

Question 60

what was the public reaction to the rearmament?

Answer 60

most Germans did not have an issue with rearmament it had been achieved without a major loss in the consumer goods market as well as no need to raise prices up

Question 61

how much of Germany's raw materials were still being imported by 1939?

Answer 61

1/3 showed that Autarky was not complete