Economic developments 1929-1949 Flashcards
(29 cards)
Which Austrian bank went bankrupt after the banking crisis?
Kreditanstalt
What bank collapsed in Germany as a result of the Austrian banks collapsing?
Danatbank
How big was the budget deficit by the end of 1929?
1.7 billion marks
What did Bruning do to promote austerity?
Cut public worker salaries, cut unemployment benefits, cut public spending wherever he could
What did Bruning do to try and keep Hindenburg on side? What did this result in?
Continued to protect agriculture with gov subsidies and taxes on foreign imports. This made prices artificially high
What policies did Schleicher undertake to win over unions?
- Public works schemes
- Fixed prices
- Wages/benefits restored
- Industrialists, landowners, Hindenburg dislike
What were Bruning’s attempts at reflationary measures?
- Job creation schemes, borrowing, and Agrarian socialism
- Implemented very late and resulted in a loss of support from Hindenburg
When did Papen put out an Emergency decree?
September 1932
What did Papen’s Emergency financial decree say? What was this decree for? Who liked it and who disliked it?
- Aimed to reduce unemployment
- Tax rebates to employers provided they hire new staff
- End to compulsory arbitration
- Relaxation of the wage agreement system
- Employers like; unions and left dislike
What law forbid the setting up of new department stores?
The Law for the Protection of Retail Trade
What ministry was set up by the Nazis in 1933? What were some of its policies?
- The Reich Food Estate
- Guaranteed prices for farm produce
- Established high tariffs
What did the Nazis suspend in 1933?
All peasant debts
What is the German word for “war economy”?
Wehrwirtschaft
What did Hjalmar Schacht’s law to reduce unemployment include in June 1933?
- Income tax rebates
- Loans to encourage industrial production
- Public works schemes
- Subsidies for private construction
What law tried to tackle unemployment in September 1933?
Law to construct a 7000km autobahn (with regulations that prohibited machinery when surplus labour was around)
When was recruitment into the RAD introduced?
June 1935
What evidence may suggest that the Nazi economy wasn’t entirely successful?
- Balance of payments stays in deficit
- Real wages increase overall, but so do food prices
- Much unemployment was invisible — the Nazis hid it from their records
What did Schacht’s “New Plan” do?
- Increased government regulations on imports (encourage autarky)
- Developed trade with less developed countries
What did Mefo bills do?
Stimulated economic growth by raising money to invest in businesses through deficit financing. Helped housing, road construction and rearmament
What is the argument for deficit financing?
Deficit financing would allow major public works programmes, reducing unemployment and stimulating manufacturing
What did Goering’s four year plan propose?
- Plans to achieve autarky through Ersatz goods (eg. artificial rubber)
- Development of chemical industry
- Steelworks using lower grade ores
- Producing heavy machinery
What type of economy was Goering’s?
It was managed, meaning private businesses would stay but would risk being taken over if they didn’t perform well. Prices and targets were set
Was the four year plan successful? What figure supports this?
Not really — overall targets not met, synthetic substitutes were costly and Germany still imported 1/3 of raw materials by 1939. Rearmament was also still incomplete upon wartime
How did conscription disadvantage the economy?
Poor management meant that absolutely anyone could be conscripted regardless of how skilled they were
