The Nazi Economy Flashcards
What were unemployment figures and underemployment figures after the Great Depression in Nazi Germany?
- 8.5 million unemployed
- Work went down from 7.5 hours to 6 hours on average
- Small businesses and banks went bankrupt, 100,000 a year from 1929-33
- Forced the middle class to rely on soup kitchens as there was a shortage of Gold and Foreign Exchange
When was the first four year plan introduced and what were its main targets?
- Schacht announced it on 1st January 1933
- Main focus was unemployment and agriculture
- Hitler only focused on the economy in May
How did Nazi’s manipulate unemployment statistics?
- Jews were banned from the civil service and other occupations, not in stats
- Women were discouraged and married were women were sacked, not in stats
- the RAD was temporary work for long-term unemployed, this paid poorly but boosted employment numbers
How did the regime battle unemployment?
- ‘Battle for Work’ schemes created an image of things being done
- Lots of subsidies for public work and construction to build 7,000km of motorway (autobahn)
- Attempt to improve conditions through ‘Strength through joy’ and ‘beauty of work’ slogans
By how much did the regime reduce unemployment in the years 1933 and 36?
1933 - 26%
1936 - 7%
What was the welfare of workers like despite unemployment rates decreasing?
- Very poor conditions, autobahn workers were paid under welfare and lived in barracks under strict discipline
- Amount of people leaving school at 16 had increased and airfield employment was emphasised despite poor pay and conditions
What did the survey in the late 30’s by the LofN show?
- German living standards were below Britain by a 1/3 and below America by a 1/2
What did Alfred Hugenburg do?
- Increased import tariffs on agricultural produce making German produce cheaper
- Banned banks from repossessing farms and made manufacturers put German butter in their margarine
- Resigned in May 1933
What did Richard Darre do?
- Replaced Alfred Hugenburg
- Set up RNS to regulate good production and distribution of farm produce, setting prices and farm wages
- Could fine people up to 100,000RM for not conforming
How did farm produce increase in the years 1928 and 1934?
1928 - provided 68% of all farm produce
1934 - provided 80% of all farm produce
How were farmers benefitted under the first four year plan?
- Cheaper loans, excluded from taxes and welfare payments
- Reich Entailment Law which guaranteed future of smaller peasant farmers and small holders
- Protected from indebtedness and split up of land but meant that land could not be sold and next of kin were dispossessed
How did big business react to Nazi economic policy?
- Steel and iron industry, e.g I.G Farben supported the Nazis
- Export based were not happy, department stores made 80% less in 1934 than 1929
- Law for the Protection of Retail Trade stopped formation of new stores and expansion of current ones
How did the Nazis shut down Trade Unions?
- Shut them down 2nd May 1933
- 6th May the DAF under Robert Ley was formed
- Membership was voluntary but it became increasingly hard to get a job without it
- DAF made it possible for big businesses to exploit its workers more
How was trade shut off with the USA and how did Germany cope with this?
- 1934 Germany failed to pay its debts to the US and trade collapsed
- ‘New Plan’ drew up treaties with other countries, e.g Hungary and Yugoslavia which involved exchanging goods instead of paying for imports
What was the crisis of 1935-36?
- 1935, countries wanted cash, Bulgaria began demanding cash for goods, not oil
- Germany still needed raw materials and was not self-sufficient
- Germany needed to import food, shortage of fats and meat
- Increasing exports went against Nazi Foreign Policy
What was the ‘Secret Memo’ in 1936?
- Hitler responded to critics such as Schacht and opposition to German Economic Policy
- Outlined a large scale plan for autarky, especially in raw materials to rearm Germany within 4 years
- Led to the Second Four Year Plan
What was Second Four Year Plan?
- A tighter focus on autarky and preparation for war
- Hermann Goering was in charge of this
- Sacrifice of living standards and fall in exports due to the immense military spending
- Created a ‘capitalist command economy’
What were the 6 departments in the office of the Four Year Plan?
- Raw material production
- Agricultural production
- Distribution
- Labour
- Prices
- Foreign Exchange Matters
What Raw Materials were replaced by the Germans and how?
- Rubber was replaced by ‘Buna’
- Did not produce rapid results
- 6 tonnes of coal needed to produce 1 tonne of synthetic fuel
- Synthetic fuel needed for military transport
How was the economy put towards preparing for war under the Second Four Year Plan?
- 2/3 of German industrial development was put towards production of Steel, iron ore and tools between 1936 % 39
- Led to Germany producing 3 times as much steel as Britain
- From 1939 the plan was for the German airforce to be increased fivefold, a vast battle fleet and motorisation
What is the Guns vs Butter argument?
- The production of arms vs the production of necessities
- Regime promised “Bread and Work”. people were scared of the dreaded war rations and shortages of the Weimar days
- Propaganda encouraged consumption of less fats and meats to be patriotic to avoid rationing
How did heavy industry profits grow and consumer expenditure fall during the Second Four Year Plan?
- Profits grew from 1.3 to 5 billion
- Consumer expenditure caused private consumption to fall from 64% in 1936 to 59% in 1938
- This was behind the USA and UK due to an appropriation of resources towards rearmament
What was the situation for the Nazi’s in 1939?
- Were not always meeting unrealistic targets
- Germany was still importing 17% of its agricultural needs, failure of complete autarky
- Propaganda to switch from meat to fish and sausages to jam for bread
- Jam consumption trebled from 1928-38
- Big industrialists and manufacturers resented the command economy and Nazi level of control
When was the Nazi T4 programme initiated?
- October 1939
- Parents offered to send disabled children up to the age of 17 to specialist clinics where they were killed
- From Jan 1940 T4 extended to other hospitals and institutions for the mentally ill or chronically ill
- Over 70,000 died
How were ‘asocials’ dealt with?
- Between October 1936 and July 1940 families who were ‘asocial’ were sent to be re-educated at Hashude
- A housing estate for 78 families wirer lectures and classes, living to set schedules and random visits were made
- Hashude closed when housing became scarce
How were the living standards for the ordinary worker under Nazi economic plans?
- For conformists it originally improved, unemployment fell and Nazi stats showed real wages rising
- Wages were regulated so there was not much spending money, it was put towards war production and not consumables
- ‘Strength through joy’ provided man extras, loans, medical care and extra food + vitamins
- Chance to save for a Volkswagen were not, only a few produced before gearing towards war production
How did Nazi’s manage social welfare?
- 1933 the NSV was set up and only gave to those who ‘deserved’ help
- NSV’s aims were of a healthy nation, not individuals
- By 1938 there were 10,800 of these kindergartens and creches to indoctrinate the young
- NSV had a million voluntary workers and 500,000 block wardens who were responsible for 30-60 households
- Ran a yearly Winter Aid program and raised RM2 million
When war broke out why did the army feel unequipped when war broke out?
- In gearing up for war they wanted to have at least 4 months worth of supplies of ammunition before war
- They only had 6 weeks worth of ammunition
When war broke out what did Göring control?
- He was head of the Air Force and the Office of the Four Year Plan
- He therefore ended up favouring the Air Force more
- People aware of the new engineering techniques were ignored and Nazi officials remained in power
When did Hitler make Fritz Todt minister of armaments and munitions?
- 26th Feb 1940, Todt wanted centralised control but Göring denied this level of control
- 3rd December memorandum from Hitler simplifying the economy
- 8th Feb 1942 Todt died in a plane crash
