Economic policies Flashcards
(23 cards)
Autarky meaning ?
economics self-sufficiency
Who was the key figure in Nazi economic policy between 1933-36 ?
Schacht
How did Schacht stimulate economic recovery :
- pumping money into economy to build homes and autobahns (German motorways)
- stimulating consumer demand by giving tax concessions and grants to particular groups
- giving subsidies to private firms to encourage them to employ more
- controls on wages and prices to control inflation
- ‘New Plan’ in 1934 to control Germany’s foreign trade
- Mefo Bills
What was the project to reduce unemployment called ?
‘battle for work’
How did ‘battle for work’ work ?
large sums of money spent on building and increased industrial production stimulated by loans
What was introduced in 1935 to do with work ?
the Reich Labour Service under which the unemployed were compelled to do 6 months labour in farming or construction
later that same year military conscription was introduced
What prompted the ‘New Plan’ to be implemented ?
imports were growing faster than exports - leading to a shortage in foreign currencies which were needed to purchase foreign goods
What did the ‘New Plan’ entail ?
Schacht initiated a series of trade agreements such as the Balkand and South America where Germany was supplied with food and raw materials which were paid for in German Reichmarks and then these countries could only use the money to buy German goods
What did Mefo Bills entail ?
means to buy military equipment using Mefo bills. These bills could be exchange for cash at Reichbank ensuring to private companies that they will get their money . Companies were given incentive to keep bills as there was a 4% annual interest if you kept them in there for 5 years
What problems did Schachts methods create ?
food shortages, rising prices, lower living standards
had to choose between ‘guns or butter’
Why did Schacht not do the 4 year plan ?
he opposed autarky
Who carried out the 4 year plan ?
Goering
How was the 4 year plan going to achieve rearmament and economic autarky ?
- managed economy controls on raw material, prices etc
- setting production targets for private companies
- establishing state owned industrial plants - Hermann Goering Steelworks
- increasing production of key commodities
- encouraging research and investment in production of substitute products
Result of Four Year Plan ?
did not match propaganda claims - 1939 Germany still imported one third of its raw materials - in food production there were similar failings
When did Hitler state the battle of work had been won ?
1936 - not mentioned after shows successful propaganda
Flaws in claims that reduction of unemployment was a result of Nazi economic policies :
- economic recovery begun before Nazi’s took power
- part of the reduction in employment achieved by persuading married women to give up employment
- reintroduction of conscription in 1935
- statistical devices inflated figures. E.g someone in occassional employment would be counted as being in permanent employment
What did workers incomes do between 1933-39 ?
increased
What did employers do that attracted more skilled workers ?
payed bonuses and other benefits
A reason pay increased for workers ?
longer hours
Why were workers living conditions not improved as much as it seems ?
worker’s wages were subject to increased deductions because of the compulsory contributions they had to make to the German Labour Front and welfare organisations
and because prices rose
What did prices do during this period ?
rose causing shortages of key commodities
What did Gestapo reports show ?
occasional dissent with the regime
however propaganda and the use of terror succeeded in persuading the population to shoulder the burden of rearmament
