Economic recovery, 1933-36

Question 1

What was Hitler’s main economic aims during this period?

Answer 1

Economic recovery and to reduce unemployment.

Question 2

Who was the finance minister during this period?

Answer 2

Hjalmar Schacht - Minister of Economics

Question 3

How many people were unemployed in 1933?

Answer 3

8 million

Question 4

What 3 things did Schacht do to help with unemployment?

Answer 4

• Created work and encouraged businesses to offer temporary work for the long-term unemployed.
• Created the RAD (Reich Labour Service) which set up schemes for unemployed men and women - providing manual work with basic food/accommodation.
• Introduced road-building schemes which created work in the road industry.

Question 5

How many people were employed due to road-building schemes between 1933-35?

Answer 5

84,000

Question 6

What percentage of the workforce was unemployed in 1932 in comparison to 1936?

Answer 6

1932 = 29.9%
1936 = 7.4%
However Jews and women were not included in the stats.

Question 7

What was the state of agriculture in 1933?

Answer 7

It was in recession

Question 8

How did Schacht deal with agriculture?

Answer 8

• Increased import tariffs on agricultural produce, making German produce cheaper.
• Banned banks from repossessing farms from farmers in debt.
• Set up the Reich Food Estate (RNS) which regulated food production and distribution of farm produce, as well as setting price and farm wages. They could fine up to 100,000 Reichsmarks for not conforming.

Question 9

What percentage of farm produce was provided by German farmers in 1928 compared with in 1934?

Answer 9

1928 = 68% of farm produce
1934 = 80%

Question 10

What law was introduced in 1933 to help small business?

Answer 10

The Law for the Protection of Retail Trade - prevented the building of new department stores and banned the expansion of existing ones.

Question 11

How much less did department stores make in 1934 than in 1929?

Answer 11

80% less

Question 12

How did the DAF cause workers to suffer?

Answer 12

They made it possible for big businesses to exploit workers by setting their own working conditions.

Question 13

What happened to international trade as a result of Schacht’s ‘New Plan’?

Answer 13

Trade initially improved. However, by 1935, many countries were demanding cash for goods rather than an exchange of goods. E.g. Bulgaria was demanding cash for their oil.