Summary 8 - Rearmament and the creation of a war economy Flashcards
Give some negative consequences of Schacht’s economic policies?
- Germany encountered balance of payments issues (BOP deficit)
- There was food shortages
- Prices did increase
- Most ordinary Germans had lower living standards by 1936
What was the ‘guns vs butter’ debate?
If Germany imported more food to tackle food shortages, import expenditure would rise and there would be less foreign currency to buy raw materials for rearmament.
How was the ‘guns vs butter’ debate resolved?
The dilemma was resolved by the decision to strive for economic self-sufficiency. If they could produce more food and material in Germany they would not need to import more.
This policy was known as autarky.
The policy of autarky was the basis of which plan?
This policy of autarky was the basis of the Four Year Plan.
When was the Four Year Plan introduced?
The Four Year Plan was introduced in 1936.
Who was put in charge of the Four Year Plan and why?
Hermann Goering was placed in charge of the Four Year Plan as Schacht was reluctant to support it.
What was the aim of the Four Year Plan?
the aim of the Four Year Plan was to make Germany ready for war in four years.
What was the Four Year Plan a clear indication of?
The Four Year Plan was the first explicit indication that the regime was planning for war.
The Four Year Plan was centred around achieving which two key aims?
- Autarky
- Rearmament
Give four ways in which the Nazis intended to achieve autarky and rearmament?
- A managed economy with control of labour, prices, raw materials and foreign currency.
- Setting production targets for private industries
- Increased production of key materials like iron, steel and chemicals
- Increased research and development in the production of substitute products so Germany could be less dependent on imports.
How was autarky portrayed by the Nazis?
Autarky was presented as an ideological (national pride) and patriotic battle.
What were the German people encouraged to do in order to help to achieve autarky?
People were encouraged to buy German goods and food.
When was a campaign launched to collect metal in order to help production?
In 1937
Give evidence which suggests that the Four Year Plan was unsuccessful?
- By 1939, Germany still imported 33% of its raw materials
- Food supplies were still dependant on imports, 17% of food supplies were imported by 1939
Why could Germany not divert all of its resources towards war preparation?
It would have been impossible to divert all resources towards war preparation and maintain high levels of consumer spending.
