Section 3.3 - The Nazi economy 1933-1939

Question 1

“Battle for work”

Answer 1

• 1933 over 7 million people out of work but this was doctored by the Nazis heavily over the years
• Priority of the Nazi party to reduce unemployment

Official figures
4.8 million unemployed 1933
100,000 unemployed 1939

Question 2

Reasons for the decrease in unemployment

Answer 2

• In 1932-1933 the depression evened out and started to recover naturally
• Schacht introduced policies of government spending such as the “autobahnen” as well as increasing jobs through that, land reclamation, road repairs and house building
• Government spending was funnelled into military rearmament, and hidden through bonds so the allies couldn’t see the major scale on which it improved
• Unemployment statistics doctored heavily so fired people, women through loan schemes and many young people through military service were excluded

Question 3

Schacht’s “New Plan” (rearmament)

Answer 3

• 1934 the trade deficit increased due to rearmament costs, tarrifs and prices
• Schacht made new legislation called the “new plan” that meant nothing could be imported or exported without permission from the ministry of economics, meant extra food shortages
• Living standards still bad in Germany, worse so than the 1920s

Question 4

Nazi war economy and the 4 year plan

Answer 4

• In 1936 waging war was a priority of Hitler
• Launched the 4 year plan to mobilise Germany for war in 4 years, starting at the 1936 Nuremberg Rally
• Schacht was alarmed by this project and wanted the pace of rearmament to be slowed, however his experience was overlooked and his influence waned
• When Schacht resigned in 1937 Goering became head of the operation

Question 5

Goering and economic self sufficiency

Answer 5

• Goering wanted to reduce the need for imported food and raw materials as they were the main reason for the deficit and unreliability
• Attempts made to expand farms through new grants to bring more land under cultivation
• Required to use German own raw materials instead of imported ones, no matter the quality
• Huge investment into finding alternatives or artificial substitutes for such things as oil and rubber
• Labour retraining started so Germany did not run short on workers with essential skills

Question 6

Goering and big business

Answer 6

• Expected major German companies to cooperate with him and make big profits, Such as I.G.Farben who produced synthetic motor fuel, rubber and eventually supply extermination camps with the gas used to mass murder Jews
• Some did not cooperate and so state run alternatives were created to bypass the businesses and steal all their success

Question 7

Success of the 4 year plan

Answer 7

• Hitler had not expected the campaign to make Germany totally self sufficient, and therefore he incorporated the concept of living space into his plans so that things like food would not be a problem
• Agriculture found it hard to expand due to things such as drafting, conscription into armaments factories and such and also having better paid jobs in cities. Around 1.4 million left the country between 1933 and 1939, The Reich law of 1933 about farms having only 1 heir contributing to the lack of loyalty
• Steel production increased however was not as great as expected, especially from the effects of using home supplied Iron
• Synthetic rubber had reached its targets while the synthetic motor oil did not
• Government ran huge trade deficits
• Still importing 1 third of its resources for raw materials
• 4 year plan only partly successful, and very much less than goals and expectations
• Motor oil in 1936 - 1.79 million tons
  Motor oil in 1942 - 6.26 million tons
  Original goal - 13.38 million tons
• Synthetic rubber in 1936 - 700 tons
  Synthetic rubber in 1942 - 96,000 tons
  Original goal - 120,000 tons