Economic Policies

Question 1

What were the main aims of Nazi economic policy?

Answer 1

Reduce unemployment, prepare Germany for war (rearmament), and make Germany economically self-sufficient (autarky).

Question 2

How did the Nazis reduce unemployment?

Answer 2

Public works (e.g. Autobahns), rearmament, conscription, removing Jews/women from the workforce, and schemes like the RAD (Reich Labour Service).

Question 3

What was Schacht’s “New Plan” (1934)?

Answer 3

Aimed to control imports, reduce foreign debt, and boost trade with southeastern Europe to support rearmament.

Question 4

How did rearmament affect the economy?

Answer 4

It stimulated heavy industry, reduced unemployment, and was central to economic growth — but diverted resources from consumer goods.

Question 5

What is autarky and how did Nazis pursue it?

Answer 5

Economic self-sufficiency — achieved through synthetic substitutes (e.g. ersatz goods), controlling imports, and expanding agricultural production.

Question 6

What was the Four-Year Plan?

Answer 6

Led by Goering, it focused on making Germany ready for war within four years, including investment in synthetic fuels, steel, and food production.

Question 7

What was the conflict between Schacht and Goering about?

Answer 7

Schacht opposed excessive rearmament due to economic risks; Goering pushed for rapid militarisation. Schacht resigned in 1937.

Question 8

What was the “Strength Through Joy” (KdF) program?

Answer 8

A Nazi leisure and rewards scheme to increase worker satisfaction and productivity — offering cheap holidays, theatre tickets, and the Volkswagen project.

Question 9

How successful were Nazi economic policies by 1939?

Answer 9

They reduced unemployment and boosted industry, but relied heavily on government spending, debt, and militarisation. Autarky was not fully achieved.