2 - nazi economic policies

Question 1

unemployment figures in Germany in 1932

Answer 1

6 million

Question 2

Hjalmar Schacht

Answer 2

• president of the Reichsbank (1933-39)
• minister of economics (1934-37)

Question 3

deficit financing

Answer 3

government spending more than its income

Question 4

Schacht’s New Plan (1934)

Answer 4

• govt control over all trade, tariffs, capital & currency exchange
• govt decided which imports were allowed (priority = heavy industry)
• bilateral trade treaties signed (particularly with south-east Europe)
• Reichsmarks used by other countries to buy German goods
• Mefo bills introduced
• introduced public works (eg. public building, motorways, reforestation)
• public investment (leading to deficit financing)
• setting interest rates at a low level
• assistance to farmers & smaller businesses

Question 5

results of Schacht’s economic policies

Answer 5

+ govt expenditure rose by 70% (1933-36)
+ unemployment fell (1.6mill in 1936)
- balance of trade deficit occurred (imported more raw materials & failed to increase exports)
- Germany = short of money

Question 6

When was Schacht’s New Plan introduced?

Answer 6

September 1934

Question 7

mefo bills

Answer 7

government credit note offering 4% interest

Question 8

negatives of Schacht’s New Plan

Answer 8

• only hid the balance of payment problem (getting worse by 1936)
• wanted to reduce arms expenditure and increase production of industrial goods to sell (‘guns or butter’)

Question 9

Göring’s Four Year Plan (1936)

Answer 9

• increase agricultural production
• increase production of raw materials
• develop ersatz products
• control labour force to prevent inflation
• regulate imports & exports in favour of rearmament (at the expense of agriculture)

Question 10

When was Göring’s Four Year Plan introduced?

Answer 10

1936

Question 11

ersatz products

Answer 11

replacement/substitute products, eg. sawdust bread

Question 12

Göring’s aims

Answer 12

increase rearmament & autarky, so that Germany was self-sufficient in food & industrial production

Question 13

autarky

Answer 13

self-sufficiency

Question 14

When did Schacht resign as economics minister?

Answer 14

1937

Question 15

Who replaced Schacht as economics minister?

Answer 15

Walther Funk (although Göring held power)

Question 16

results of Göring’s economic policies

Answer 16

+ production increased in some industries (eg. aluminium)
- didn’t reach targets for rubber or oil
- failed to meet levels required by armed forced
- when war broke out, still relying on foreign supplies for 1/3 of raw materials

Question 17

How much of Germany’s raw materials came from foreign supplies by the time war broke out?

Answer 17

1/3

Question 18

unemployment figures in Germany in 1936

Answer 18

1.6 million

Question 19

When was conscription introduced?

Answer 19

May 1935

Question 20

position of workers during the Nazi rule

Answer 20

• unemployment fell (due to public works & conscription)
• independent unions banned & replaced by DAF
• lost the right to negotiate wages & conditions of work
• real wages only surpassed 1929 levels in 1938
• working hours = 43 (1933) -> 47 (1939)
• consumer industry workers struggled

Question 21

German Labour Front / DAF

Answer 21

• supervised conditions
• dealt harshly with unrest
• replaced independent trade unions

Question 22

‘Strength Through Joy’ movement

Answer 22

offered welfare benefits to loyal workers, eg. sports facilities, cultural visits, holidays, Volkswagen cars

Question 23

‘Beauty of Labour’ movement

Answer 23

improved working conditions