The Economy and Living Standards (1933-39) Flashcards
(36 cards)
1
Q
List 4 problems the German economy had when the Nazis came to power.
A
- Germany was short of essential raw materials
- There wasn’t enough foreign currency to pay for many imports
- Exports were hit by a slump in global trade
- 5.8 million Germans were unemployed
2
Q
List 4 aims Hitler had for the economy, and explain them.
A
- To have a good standard of living to guarantee public support
- To provide materials necessary for rearmament
- To move towards autarky so that the economy would not be so vulnerable during war
- To make enough resources for the major architectural projects to remake Germany
3
Q
List 3 reasons why Germany’s economy had been recovering even before the Nazis had come to power.
A
- Brüning had reparations cancelled
- He had also set up public work schemes
- The economy was naturally recovering from the Depression
4
Q
In what 2 ways did the government deal with the Depression?
A
- Indirect stimuli
- Direct stimuli
5
Q
Give 2 indirect actions the Nazis used to improve the economy.
A
- Tax cuts in farming, small businesses and heavy industry (so more workers could be employed/ goods could be bought)
- Grants for business (to pay debts, buy new machinery and employ more workers), newlyweds (to spend on furniture) and homeowners (to pay for house improvement, repairs or domestic servants)
6
Q
Give a direct action the Nazis used to improve the economy.
A
- Expanding public work schemes
7
Q
What 2 other things did the Nazis do to deal with the issue of unemployment?
A
- They changed who counted as unemployed
- There was conscription for all 18 to 25 year old men from 1935
8
Q
Give figures on unemployment in 1934 and 1936.
A
- 2.7 million
- 1.6 million
9
Q
Give 3 details on how the Nazis changed which groups could count as unemployed.
A
- Married women (who either left or were sacked) did not count in the statistics
- Jews were not allowed to work in public service
- The RAD (Youth Service) took the young off the unemployment register (400,000 in 1934)
10
Q
Give 2 details about the RAD.
A
- It provided the youth with manual labour to do
- They paid less than unemployment pay, gave them basic food and workers stayed in labour camps
11
Q
Who was in charge of the economy in 1933, and when had they been appointed to their post?
A
- Hjalmar Schacht
- He was reappointed as President of the Reichsbank in March 1933
12
Q
List 2 advantages that the reappointment of Schacht had.
A
- It reassured economic elites
- He was a very able economist, as he had been the one who had dealt with the hyperinflation crisis
13
Q
What were 3 measures Schacht took to improve the economy?
A
- He used deficit financing
- He suspended debt repayments
- He made sure to prevent inflation
14
Q
What 2 things did Schacht do to prevent inflation?
A
- He put government controls on wages and prices
- He used Mefo bills to increase public spending
15
Q
What were Mefo bills?
A
- Credit notes issued by the Reichsbank to companies servicing the government
- The idea was that companies would be able to claim their money, with interest, in 5 years
16
Q
Give 2 huge advantages the use of Mefo bills had for the Nazis.
A
- It financed half of their rearmament programme from 1933 to 1938
- It kept rearmament secret
17
Q
What problem did the revival of the economy cause by 1934? List 4 reasons why.
A
- A balance of trade crisis
- The increase in jobs meant more Germans had money to spend, which they tended to buy foreign goods with
- At the same time, employing Germans to work on public work schemes didn’t produce additional goods to be exported
- Rearmament required the import of even more raw materials, which would led to a bigger trade deficit
- Due to the large number of imports, gold and foreign currency reserves were running low
18
Q
What was the name of Schacht’s plan to deal with this issue? When did he create it?
A
- The New Plan
- 1934
19
Q
What were 2 aspects of the New Plan?
A
- Imports had to be approved by the government
- Schacht made a series of bilateral trade agreements with many of the Balkan states that provided Germany with the raw materials needed for rearmament
20
Q
What led to the creation of the Four Year Plan? Give 3 details.
A
- In 1935, due to a poor harvest, it was necessary to import food
- However, Schacht wanted to keep imports and borrowing as low as possible as he believed the economy was distorted enough due to rearmament
- He also wanted to slow the increase in arms expenditure
- Rationing was considered, but as this would be very unpopular, it was abandoned (expect for the rationing of butter in 1935)
21
Q
When was the Office of the Four Year Plan created, why, and who was put in charge of it?
A
- 1936
- Hitler put Göring in charge, as he was getting impatient with Schacht’s caution, and wanted to create a command economy
22
Q
List 2 aims of the Four Year Plan.
A
- To make the German army ready for war in approximately 4 years
- For the German economy to reach autarky
23
Q
When did Hitler expect war to break out?
A
- 1942-43
24
Q
How did Germany plan to reach autarky? Give 2 ways.
A
- By increasing its own production of key materials (whether this was for rearmament or food)
- Developing ersatz (substitute) products, such as Buna (artificial rubber)
25
What 3 things did Göring do as head of the Office of the Four Year Plan? What did this cause?
- Set priorities for industry
- Issued production targets
- He could nationalise companies that did not reach the production targets
- This meant that his work cut across other economic ministries
26
How did Göring and Schacht's policies conflict with each other, and what effect did this have?
- Schacht wanted to control imports while Göring wanted to increase military expenditure
- Schacht resigned
27
How successful was Germany at reaching autarky? Give 4 details.
- It took 6 tonnes of coal to produce 1 tonne of oil for military transport
- Germany still relied on foreign imports for one-third of its raw materials
- Germany became self-sufficient in bread, sugar and potatoes
- Making Buna was more expensive than importing rubber
28
What issue did the amount of government spending on rearmament cause in 1939?
- There was almost another inflation crisis
29
What was the NSV and when was it set up?
- The Nazis' social welfare programme
- 1933
30
What was the aim of the NSV?
- To create a healthy nation rather than to look after individuals
31
Give 3 examples of the NSV's work.
- By 1938 they ran 10,800 crèches
- It was also responsible for housing
- From 1933 it ran a yearly Winter Aid programme
32
How did the numbers of female workers under the Nazis change?
- 11.4 million in 1933 to 14.8 million in 1939
33
How did the Nazis make use of female workers?
- They used them to fill jobs such as clerical work, as this would free men to work in munitions factories
34
Describe 2 aspects of life for female workers.
- Their wages were half of men's on average
- This forced many women into sex work
35
What were 3 reasons why the professional middle-class supported the Nazis?
- They had lost their savings in the 1923 hyperinflation crisis
- Brüning had reduced the size of the civil service
- Jewish academics and professionals were excluded, which opened up more positions for them
36
In what 2 ways did the industrialists benefit from the Nazis being in power?
- The destruction of trade unions and the creation of the DAF allowed big companies to keep wages low and increase hours
- Companies benefitted from military contracts
