Topic 4 Economy Under Schacht Flashcards
Options open to the nazis
Options Abide by their promises this would result in loss of essential funding through losing support of big business
Ignore it’s promises which would result in loss of popular support
Look for another solution✔️
No clear ways to handle the economy
Because there was a conflict between 25 point programme and needed funding from industrialists which made hitler cool about anti capitalism
Hitlers dilemma guns vs butter argument
Hitlers dilemma guns vs butter argument Hitler knew that for any economic policy to be successful after 1933 he needed to provide food for people not just supply needs for rearmament
The mixture of approaches was doomed to mediocrity
The recovery years under Schacht
Solution- a third way it was a compromise between the socialistic promises of a 25 point programme and the capitalistic interests of big business
The third way was supported by schacht
The third way was supported by schacht Seen in his new plan
Some state sponsored spending while allowing capitalist free enterprise
Under schacht unemployment fell from
Under schacht unemployment fell from 6 million to 1 million between 1933 and 1938 economic growth was evident and inflation was low
While unemployment statistics looked promising
While unemployment statistics looked promising Statistics masked the fact some employment had been created by women and Jews losing thee I jobs and conscription affected these figures
Although inflation was low
Although inflation was low This was more due to wages and price freeze than to success of free market system
Economic growth was more due to
Economic growth was more due to Arms development than due to improve economic efficiency /exports therefore this limits the level of success that can be placed on the new plan
