Nazi economy Flashcards
(25 cards)
Who was in charge of the economy from 1933-36?
Schacht
What were the initial aims of economy?
Reduce unemployment, stimulate economic growth and restore confidence
How many were unemployed in 1933?
6 million people, 1/3 of the workforce. Decreased to less than 1 million by 1939 due to economic recovery
A way that Schacht initially fixed economy?
Decreased interest rates to encourage people to take out loans and spend (increasing flow of money)
Policies that Schacht introduced?
MEFO bills to try and balance trade and improve reliance on the Rentenmark, Public Works building Autobahns to reduce unemployment, more trade agreements, Reich Farm Estate to boost agriculture and land protection
Schacht successes?
Decreased unemployment, GNP rose, industrial output increased by 50% and boosted public morale/confidence in the Nazis
Schacht failures?
Prolonged the economic problems rather than fixing them, women and jews removed from statistics distorting the figures, economy still dependent on imports of raw materials. No autarky yet
What happened with conscription?
They kept lowering the age to encourage more people to sign up to solve unemployment crisis
What was Schacht’s New Plan of 1934?
Direct imports to vital industries and promoted trade. Trying to balance trade whilst increasing foreign security in the German economy
What were Mefo Bills?
Government credit notes used to fund rearmament by secretly delaying payments, like an IOU/borrowing. Helped reduce inflation
Who took over from Schacht as in control of economy?
Goering
What was Goering’s title?
Plenipotentiary of the Four Year Plan
What was the economic debate of the Nazi economy?
‘Guns or butter’ - should they focus on rearmament or consumer goods
When was the Four Year Plan?
1936
What were Goering’s aims with Four Year Plan?
Achieve autarky (especially in food and raw materials), expand rearmament, prepare Germany for war
When did Schacht resign?
1937, thought it was too unsustainable
What did the Four Year Plan include?
Increase in synthetic materials such as rubber and oil, create state controlled companies (IG Farben), reduce imports = self-sufficient and increase grain/livestock production
Results of Goering’s Plan?
Industrial output rose by 60% but the country were still heavily reliant on imports of raw materials and food
Initial weakness of wartime economy?
Germany not fully prepared for total war in 1939, heavy ‘Guns or Butter’ debate, produced consumer good to please citizen morale and prevent resistance
Structural problems of wartime economy?
Inefficient bureaucracy with overlapping opinions and rivalries (Goering and Speers), lack of central co-ordination until 1942, Hitler’s indecisiveness, continued autarkic experiments
Who is Albert Speers?
Appointed Minister of Armaments and War Productions in 1942. He was Hitler’s Technocrat.
What did Speers do?
Rationalization of industries - cutting non-essentials ones, introduced a central planning board to streamline decisions and create order, used concentration camp prisoners as forced labor (up to 7 million workers)
Speers successes?
Ammunition production increased by 97%, tank production increased by 130% and aircrafts by 80%
Speers limitations?
Production was still behind the Allies (esp. USA and USSR), he had a shortage of raw materials and skilled workers, Hitler let women into the workforce WAY too late (1943), military defeats crippled economy
