Schachts New Plan Flashcards
(9 cards)
Who was Hjalmar Schacht in Nazi Germany?
He was President of the Reichsbank and later Minister of Economics, responsible for stabilising and managing the economy under Hitler.
What was the aim of Schacht’s New Plan (1934)?
To reduce imports, lower unemployment, control foreign trade, and solve the balance of payments crisis.
How did the New Plan control imports?
By prioritising imports vital for rearmament and agriculture, and restricting consumer goods and raw materials from abroad.
What were Schacht’s bilateral trade agreements?
Agreements with southeast European countries to trade German goods in exchange for raw materials — paid in Reichsmarks to keep currency in Germany.
What were the exchange controls in the New Plan?
Businesses had to get government permission to access foreign currency, allowing state control over what could be imported.
How did Schacht’s New Plan tackle unemployment?
Through state-funded public works (like the Autobahns), subsidies for businesses, and job creation in the armaments and construction sectors.
What were the successes of the New Plan?
Reduced unemployment, stabilised the economy, and allowed Germany to begin rearming without collapsing the currency.
What were the limitations of the New Plan?
It didn’t achieve full autarky, was unsustainable long-term, and limited consumer goods. Eventually, it was replaced by Goering’s Four-Year Plan (1936).
Why did Schacht lose influence after 1936?
He opposed excessive military spending and the pace of rearmament, leading Hitler to replace him with Hermann Goering.
