Economic Development and Policies Nazis Flashcards
3 phases of Nazi economy, periods and who it was dominated by:
1) 1933 - 36 –> Recovery, dominated by Schaht’s new plan
2) 1936 - 39 –> Rearmament, dominated by Goering’s Four Year Plan
3) 1939 onwards –> War, dominated by Albert Speer
What land did Hitler want to gain and what was this term known as?
- Lebensraum = Territory that a grp believes is needed for its natural development
- Czechoslovakia and Poland
What were Hitler’s aims for economic policy?
- Reasonable living standards for morale
- Necessary resources for rearmament
- Autarky
- Resources for major architectural projects to redesign country for Aryan race
What did Hitler believe in and what did this mean?
- Primacy of politics
- Economic policy should serve political objective + good of the race
What 2 main methods did the Nazis try to stimulate the economy (give examples) ?
- Indirect stimulus eg. tax cuts, gov grants means more money to spend, which boosts spending
- Direct stimulus eg. schemes employing people
In which 3 key economic areas did the Nazis cut taxes in?
- Farming
- Small business
- Heavy industry
Who were gov grants given to?
- Businesses to repay debts/buy new machinery/employ more
- Newly married couples for furniture
- Home owners to finance home imporvement/employment of domestic services
In general what were the Four Year Plans designed to do?
- Make armed forces ready for war in around 4 years
- Achieve autarky
When was the first Four-Year Plan announced, up until when did it last and what was its main aims and targets?
- 1 Jan 1933
- Until 1936
Aim: - Autarky
Targets: - Unemployment
- Agriculture
When did unemployment hit its peak and at what number? Compare this w/ 1936
- 1932 –> 6 mil
- 1936 –> 1.6 mil
How did the Nazis have such an effect on unemployment?
- Depression had already hit its lowest point –> recovery was bound to happen as part of economic cycle
- Statistics manipulated
- Built on economic policies created between 1930 and 32 eg. RAD was an expansion
- Work created and businesses encouraged to do this, especially temporary ones for long-term unemployed
How were employment stats manipulated by Nazis?
- Women discouraged from working
Definition of workforce changed: - Jewish people no longer allowed to work in civil service and others –> not part of workforce
- Married women who left/sacked not counted workforce
How many young people were removed from the unemployment register by RAD?
400,000
What programme was established on 1 Jun 1933, with what law, who drew it up and how much did it commit to public work schemes?
- Reinhardt Programme
- Law to Reduce Unemployment
- Drawn up by Minister of Finance, Fritz Reinhardt
- RM1,000 mil
How did Hitler make it seem like they were doing a lot for the people and what was actually the case?
- Through public work schemes eg. RAD
- Extended those initiated in 1932 under Brüning
What other law was established on 1 Jun 1933 and what was it?
- Debt Regulation Law
- Restructured agricultural debts to reduce/write them off
How did gov spending on work creation change between 1932 and 1933?
- 1932 –> RM1455 mil
- 1933 –> RM1985 mil
When was conscription to the military and rearmament announced and as a result, what number did the army increase from and to between 1933 and 1939?
- 16 Mar 1935
- 1933 –> 100,000
- 1939 –> 1,400,000
What scheme was created, what did they provide, when did it become compulsory and what were the conditions like?
- Reich Labour Service (RAD) schemes for unemployed
- Provided manual work for people between 19 and 25
- 26 Jun 1935 –> Became compulsory
- Excluded from unemployment rate even though they are unpaid
- Gave women a marriage loan in vouchers if they leave work when they marry
Conditions: - Often less pay than unemployment pay
- Basic food and accommodation
- Tents/Barracks
What did work creation schemes do?
Sent people, esp young women, to work on farms/building projects
What stat shows how successful these measures were, specifically gov schemes?
- Between 1933 and 1934 –> 2.8 mil jobs created
- 20% of these created through gov schemes
The appointment of which man to the position of president of Reichsbank boosted business confidence, when did this happen and when did this man also become Economics Minister?
- Hjalmar Schaht
- Mar 1934
- Aug 1934 –> Economics Minister
What approach did Schaht take to stimulate recovery and what is this?
- Deficit financing
- Spending more than they have
When was the law to expand the pre-Nazi autobahn scheme actually established?
22 Jun 1933
What benefits did the autobahn schemes have (give stats)?
- Increased car and truck manufacture eg. between 1934 and 1936 –> 126,000 trucks built
- Improved communications when moving goods to support other industries
What stat shows the road-building scheme did not offer as much employment as suggested?
Between Dec 1933 and 1935 –> Max number of workers on project at any one time was 84,000 (often fewer)
How did the actions taken by Schaht create a balance of trade crisis and how did this impact rearmament?
- Creating more jobs led to more spending of imported goods
- Public work schemes did not create additional goods so GER’s exports were low
- To rearm, raw materials would have to be imported, however this would worsen the trade deficit
Who was the minister of agriculture and what did he do in his first weeks in office (when was this?) as part of the Four-Year Plan?
Jan 1933:
- Alfred Hugenberg
- Increased import tariffs, making GER’s produce cheaper
- Banned banks from repossessing farms from farmers in debt
- Margarine manufacturers had to use German farmers’ butter in their margarine
When did Hugenburg resign, who replaced him, what did this man set up, when and what was its purpose?
- May 1933
- Richard Darré
- 13 Sep –> Set up Reich Food Estate (RNS)
- Regulated food production and distribution of farm produce
- Set prices and farm wages
- Reich Entail Farm Law –> banned selling of large and medium-sized farms
Why were Darre’s reforms concentrated on the protection of the peasantry?
Believed they were the purest of all Aryans as they were not corrected by urbanisation
However, how did these reforms disadvantage workers?
- Price controls reduced farmers’ profits –> Hard to have high wages that would attract workers
- Sale of food supervised by Reich Food Estate which took a cut from the money raised
- Banks refused to offer loans based on value of land as they could no longer be sold (Reich Entail Farm Law)
- Women also lost out –> new laws took away their right to inherit farmland
What percentage of the total workforce were farmers in 1933?
29%
Why did agriculture not seem to be a big problem for senior Nazis?
- Rearmament was the priority
- Believed it would be solved by gaining Lebensraum
Up to what amount could this organisation fine people and what did it set up for what purpose?
- Up to RM100,000 for not conforming
- Reich agencies
- Control imports of farm produce
In 1928, what percentage of farm produce was provided by GER farmers and how did this change in 1934?
- 1928 –> 68%
- 1934 –> 80%
For what reasons was rearmament difficult?
- Expensive
- Banned by Treaty of Versailles
What company was set up to initially buy armaments with what system and how was this helpful?
- Mefo GmbH, a private company placing orders for military goods
- Company would pay for armaments using Mefo bills
- Similar to IOUs
- Allowed gov to hide its actions and delay payment
What is a Mefo bill and what is the procedure when using it?
- Credit note saying you owed a specific amount
- Converted into RMs and paid w/ interest after 5 yrs
What was the purpose of Mefo bills?
Increased public expenditure without causing inflation
When did Schaht begin issuing these Mefo bills and give examples of industrial companies who were producing aramaments for Mefo GmbH by APR 1934?
- Autumn 1933
- Krupp
- Siemens
In total, what fraction of all military spending did Mefo bills finance between 1933 and 39 and what value was this?
- 1/5 of military spending
- RM 12 bil
Which businesses were supportive of the Nazis and which were not?
Supportive:
- Big businesses and cartels eg. steel industry and I.G. Farben
Unsupportive:
- Those reliant on exports
- Those suffering from measures introduced to help small businesses
How many employees did I.G. Farben have by 1939, how much was it worth and how significant was their input in economic policy?
- 200,000
- RM1.6 mil
- Advised gov on formation of Four Year Plan
Give an example of how support for small businesses impacted larger ones
- 12 May 1933 –> Law for the Protection of Retail Trade
- Stopped building of new stores + expansion of existing ones
- Department stores made 80% less in 1934 compared to 1929
Why did Nazi propaganda discourage the use of department stores?
Small businesses had supported Hitler, whereas most big businesses had not
When was 1 May made an official holiday?
1933
What was announced on 6 May 1933, was this voluntary or compulsory, what was the benefit of this new organisation for big businesses and who led it?
- Now only 1 union: DAF (German Labour Front)
- Voluntary however it became quite difficult to get work as a non-member
- Easier to exploit workers as they could set their own working conditions
- Robert Ley
Between 1933 and 1939, how did membership for DAF change?
- 1933 –> 5 mil
- 1939 –> 22 mil
When were divisions created within DAF and give examples of these?
- 24 Oct 1933
- Strength Through Joy
- Beauty of Labour