Nazi Economy 1933-45 Flashcards
(41 cards)
Summarise the economic situation that the Nazis inherited?
- No reparations - the Allies agreed at a conference in Lausanne that, because of the Great depression, Germany didn’t have to make payments.
- Schacht still had to repay foreign loans. In 1934, Germany failed to pay its debts to the USA and trade with America collapsed.
What were the Nazis’ economic priorities?
- Autarky - complete self sufficiency.
- Unemployment.
- Agriculture.
How did the Nazis tackle unemployment figures?
- Actually, the Great Depression had hit its lowest point and things were improving anyway - businesses were employing again.
- They manipulated the statistics by excluding Jews and large numbers of women.
- They created jobs that paid less than unemployment benefits through RAD schemes.
What were RAD schemes?
Reichsarbeitsdienst (Reich Labour Service) - these were schemes for unemployed men and women that provided manual work, very basic food and barracks accommodation for very little money on large infrastructural projects like road building.
How effective were RAD schemes?
Tied to increased car and truck building, they helped move goods and raw materials more efficiently. This helped businesses generally, even if the actual number of men employed to build the autobahns didn’t exceed 100K.
What did Hugenburg, the minister of agriculture, do to implement Nazi plans for Autarky?
- Increased import tariffs on agricultural produce - making German produce cheaper.
- Banned banks from repossessing farms from farmers in debt - to keep them farming.
- Made margerine manufacturers put butter from German farmers in their margerine.
What did Richard Darre - Hugenburg’s replacement do regarding agriculture?
He set up the Reichnaehrstand (RNS) to regulate food production and distribution of farm produce, set prices and farm wages and fine people who didn’t conform.
The RNS also started work-creation schemes that sent people, especially young women, to work on farms as well as on building projects.
Were the RNS policies popular?
Not with everyone - not all farmers wanted to be told what to produce and how much to sell it for.
Were RNS policies effective?
Yes. In 1928 - 68% of all farm produce provided by German farmers rose to 80% by 1934.
Which industries supported the Nazis?
Iron, steel and I.G. Farben (chemicals).
Which businesses suffered under the Nazis and why?
Big department stores - because Hitler wanted to reward small businesses for having supported him and also because the bigger businesses saw their exports fall under the Nazis.
What law did the Nazis introduce in 1933 which prevented the building of new stores and the expansion of existing ones?
The Law for the Protection of Retail Trade.
Why were trade unions a ‘double-edged sword’ for the Nazis?
Because on the one hand, there had been huge problems with up to 36 million lost working days in 1924 due to strikes and lockouts - so bigger businesses were hoping the Nazis would cut the unions down to size.
On the other hand, many workers voted for the Nazis - these workers were hoping the Nazis would ensure work, good conditions and wages.
So what did the Nazis do regarding trade unions?
- They made 1 May a national workers’ holiday (a populist move)
- They announced there was only ONE union - the Deutsche Arbeits Front (DAF).
Why was the introduction of the DAF important?
Membership was ‘voluntary’ - but non-members found it increasingly hard to find work.
The DAF allowed big businesses to exploit workers more by setting their own working conditions.
The DAF became a powerful force as part of the ‘rewards’ system of controlling the people.
How did Schacht deal with the twin problem of low foreign trade and the weak German currency?
He created a ‘New Plan’ - which focussed on trade with nearby countries such as Hungary and Yugoslavia (thereby reducing dependence on the USA) and used the exchange of goods rather than paying for imports.
Did the New Plan work?
Only until countries started demanding payment in cash, rather than an exchange in goods. For example, Bulgaria started demanding cash, not goods for oil.
Why did the Nazis introduce the new Four-Year Plan in 1936?
Germany had not achieved Autarky - they still had to import both raw materials and food. They didn’t want to introduce rationing, but they also had to increase production - hence the Four-Year Plan.
What were the foci of the second Four-Year Plan and who was in charge?
Autarky and preparation for war.
Herman Goerring was in charge.
Was it a success?
In some areas, yes:
Explosives and coal exceeded their targets and other areas, like steel and iron ore were close.
In some areas no:
Oil was below half its target by 1942. Also, imports were avoided by creating synthetic alternatives (such as ‘Buna’ instead of rubber) but this meant building new factories, which slowed down production.
Military targets were given priority, such as synthetic fuel.
Guns or butter?
The phrase reflects the Nazi dilemma - to rearm or to feed the people?
It seems that Hitler always favoured guns - but manipulated the positive effects that rearmament had for ordinary Germans’ lives by reducing unemployment, for example.
How did the Nazis use propaganda to help their economic policies?
- Encouraging people to consume less.
- Encouraging people to switch from sausages to jam and from meat to fish, for example.
These campaigns had some success (e.g. jam consumption trebled 1928-38).
How did living standards change 1933-39?
There developed a sharp divide between conformist ‘pure Germans’ and people the Nazis saw as ‘undesrirable’.
What was the T4 programme?
From October 1939, it was a policy to kill disabled children up to 17 years old, elderly people, the mentally ill and chronically sick. Over 70,000 people were killed.
