Which of the following had a greater impact on the German Economy in the years 1933-1939? Nazi policies to reduce unemployment or Rearmament Flashcards
When did Hitler promise to solve the unemployment problem - in how many years?
FEB 1933 - 4 years
Who was removed from the labour market?
Young people
How many young people did the Voluntary Labour service employ and when?
500,000 - 1935
When was compulsory military service introduced?
May 1935
What did the Law for Reduction of Unemployment do?
Pushed women out the labour market
What was offered to young couples?
1000 Reichsmarks if the women stayed at home
Why were loans issued in cash?
Promotes the purchase of household goods
How much was invested in Public’s works schemes?
1 billion Reichsmarks
What did the Public’s works schemes build?
Road/canals, and government subsides used for house construction
What industry boomed during mid 1933?
Motor industry
How much did the employment rate increase in this industry?
40%
Nazi policies to reduce unemployment EVALUATION
- Helped to revive Nazi economy - create almost full employment
- Success exaggerated
- Remained at a constant level (2.5 million)
- Until rearmament was accelerated - major factor in reducing unemployment
What was Hitler’s main priority?
Rearmament
What examples of rearmament are shown?
Motorways built - troop movement
Expansion of motor industry - transporting GER army
What was the aim of the expansion of the Labour service?
Toughen people up and prepare them for army life
What were Mefo bills?
Credit notes to pay manufacturers for military equipment
How long were Mefo bills valid for?
5 years
What was the biggest problem for rearmament?
Finance and rapid rise in imports
Who was the economics minister?
Hjalmar Schact
What were the terms of his New Deal?
- Strict control to limit imports on essentials for rearmament
- Special offices to check imports
- Bilateral trade agreements with Balkan and South American states
What currency were the bilateral agreements made in?
Reichsmarks
What was agreed between Germany and other countries in the bilateral agreement?
Money used by these countries to buy German goods and invest in construction of plants to produce goods for German war effort.
What problems had large scale rearmament caused?
- production bottlenecks (overproduction)
- labour shortages
- danger of inflation - banknote circulation x3
When did the inflation period curb?
1939
What did Funk introduce?
New finance plan
What was the new finance plan?
Government would pay 40% of cost of manufacturing
What did Funk’s plan allow?
Government to hold out money that would have been spent
Rearmament - EVALUATION
- Daily life revolved around total war economy/rearmament after ToV
- lots of benefits - accentuated reducing unemployment
- allowed foreign partnerships/trade deals
