Nazi Economic Policy Flashcards
What was a huge part of Hitler’s gain in power from an economic perspective?
economy problems in early 30’s and promised to fix unemployment
Who were the 2 big dogs in economic policy?
1) Hjalmer Schacht
2) Hermann Goering
What roles did Schacht have in the gov in the 30’s?
president of Reichsbank 1933-39
minister of economics 1934-37
What policy did Schacht create and what were his implementations? 3
‘deficit financing’ - gov spending by borrowing money.
1) setting interest rates at a low level
2) rescheduling the debts of local authority
3) giving assistance to farmers and small businesses.
What was the result of Schacht’s deficit financing policy?
1) gov expenditure rose 70% from 1933-36
2) Unemployment fell
3) balance of trade deficit - import more export less - so short on money.
What did Schacht introduce in Sept 1934 and why?
Schacht’s New Plan - due to debating over whether to spend more on either consumer goods or rearmament.
What policies were involved in Schacht’s New Plan? 3
1) gave gov control over all trade, tariffs, capital and currency exchange.
2) gov decided which imports were allowed - priority given to heavy industry.
3) Mefo bills introduced (gov money bill)
by 1936, plan only hit balance of trade problem, so what did Schacht want to do?
decrease arms expenditure & increase production of industrial goods which led to the ‘guns or butter’ debate
What and who was introduced in 1936 to fix the problem?
Goering’s Four Year Plan
to increase rearmament & autarky so Germany was self-sufficient in food & industrial production.
specifics of the aims for the 4YP? 4
1) increase agricultural production
2) increase production of raw materials
3) control Labour force to prevent inflation
4) regulate imports and exports in favour or rearmament at the expense of agriculture
When did Schacht resign as economic minister and who replaced him?
1) Schacht resigned 1937
2) replaced by Walter Funk but Goering really in power.
Due to German preparations for war, were they ready for it?
not ready for total war - still needed 1/3 raw materials from foreign supplies.
How did Schacht’s policies positively impact workers?
reduced unemployment to 1.6m in 1936 due to job creation schemes
& introduced conscription 1935 (need to go into armed forces) which mean many workers supported Hitler
Despite positives for workers, what were the negatives?
although unemployment fell, workers lost many rights - independent unions banned and replaced by DAF which was under Nazi control and only option for workers.
workers also lost right to negotiate wages - arranged through DAF
What scheme was implemented to attempt to win support and what did it offer?
‘Strength Through Joy’ - offered sport facilites, cultural visits, holdiays - only for loyal workers
