The Nazi Economy Flashcards
autarky
aim for self-sufficiency in the production of food and raw materials
trade 1933
Germany heavily depended on capacity to sell manufactured goods- exportshad collapsed because lack of trade
industry 1933
lost economic confidence in 1929
employment 1933
1932 5.6 million- often unregistered
8 million 1932
finance 1933
war debts, reparations, inflations faced severe financial problems before 1929
collapse of major banks collapsed 1931
Economic Recovery 1933-6
maintaining tariffs imported produce protect German farmers
reich food estate subsidies
Reich Entailed Farm law reducing debts by tax concessions
June 1933 the Law to reduce unemployment was renewed and expande- spread across rearmament, construction and transport
public investment tripled and public expenditure by nearly 70%
work schemes
reforestation
land reclamation
motorisation- autovands
when did economy emphasis turn to rearmament
1936 after improvements made
but 1936 Schacht ensured taxes did not go out of control and public deficit did not run out of control
Schacht’s new plan
3rd July- Schacht given dictatorial powers over economy- used to introduce New Plan September 1934:
Bilateral trade treaties- Romania and Yugoslavia - promote trade and save foreign exchange- Germany able have economic influence over Balkans before military and political control
The Reichsmark currency- reichsmark only be used to buy back German goods- raw materials from other countries
Mefo bills- disguises government spending
successes of New Plan
unemployment fell to 1.5 million
industrial production increased 60% since 1933
GNP grown over same period by 40%
The Four Year Plan
1936
Guns vs Butter
Herman Goring established the plan
aim: regulate imports and exports- prioritise chemicals and metals
control key sectors of labour force- DAF
increase production of raw materials;s and reduce financial cost of imports- steel, iron
effects of Four year Plan
resulted in resignation of Schacht as Minister of Economics November 1937 as him and Goring did not get on
production of key materials as aluminium and explosives expanded greatly- explosives target= 223 actual output 1942= 300
fell short others rubber= 120 and output 96
succeeded as not reliant on imports had not increased but meant when war broke out needed supplies 1/3 raw materials from foreign support
Nazi economy at war 1939-45
German economy was marred by inefficiency and poor co-ordination
airforce: 8920 1939 to 10,780 1941 unlike Britain trebled to 20,100
responsible for armaments: SS, different bodies of armed forces such as navy and Luftwaffe as well as 4 year plan offices
War economy
food rationing certain items from start of war
first two years of war witnessed a 20% decline in civilian consumption
Consumer goods neglected and closed at start of war- focus on total war economy- increase in unemployment
Total War
1941-5
Albert Speer Minister of Armaments February 1942
more effectively exploited potential of Germany’s economy and co-ordinated process of war production
meant more women employed factories- 50% May 1944
making effective use of concentration camp prisoners as workers
preventing skilled workers being lost to military conscription
ammunition production increase 97%
total arms production increased 59%
