The Nazi Economy Flashcards
What were unemployment figures and underemployment figures after the Great Depression in Nazi Germany?
- 8.5 million unemployed
- Work went down from 7.5 hours to 6 hours on average
- Small businesses and banks went bankrupt, 100,000 a year from 1929-33
- Forced the middle class to rely on soup kitchens as there was a shortage of Gold and Foreign Exchange
When was the first four year plan introduced and what were its main targets?
- Schacht announced it on 1st January 1933
- Main focus was unemployment and agriculture
- Hitler only focused on the economy in May
How did Nazi’s manipulate unemployment statistics?
- Jews were banned from the civil service and other occupations, not in stats
- Women were discouraged and married were women were sacked, not in stats
- the RAD was temporary work for long-term unemployed, this paid poorly but boosted employment numbers
How did the regime battle unemployment?
- ‘Battle for Work’ schemes created an image of things being done
- Lots of subsidies for public work and construction to build 7,000km of motorway (autobahn)
- Attempt to improve conditions through ‘Strength through joy’ and ‘beauty of work’ slogans
By how much did the regime reduce unemployment in the years 1933 and 36?
1933 - 26%
1936 - 7%
What was the welfare of workers like despite unemployment rates decreasing?
- Very poor conditions, autobahn workers were paid under welfare and lived in barracks under strict discipline
- Amount of people leaving school at 16 had increased and airfield employment was emphasised despite poor pay and conditions
What did the survey in the late 30’s by the LofN show?
- German living standards were below Britain by a 1/3 and below America by a 1/2
What did Alfred Hugenburg do?
- Increased import tariffs on agricultural produce making German produce cheaper
- Banned banks from repossessing farms and made manufacturers put German butter in their margarine
- Resigned in May 1933
What did Richard Darre do?
- Replaced Alfred Hugenburg
- Set up RNS to regulate good production and distribution of farm produce, setting prices and farm wages
- Could fine people up to 100,000RM for not conforming
How did farm produce increase in the years 1928 and 1934?
1928 - provided 68% of all farm produce
1934 - provided 80% of all farm produce
How were farmers benefitted under the first four year plan?
- Cheaper loans, excluded from taxes and welfare payments
- Reich Entailment Law which guaranteed future of smaller peasant farmers and small holders
- Protected from indebtedness and split up of land but meant that land could not be sold and next of kin were dispossessed
How did big business react to Nazi economic policy?
- Steel and iron industry, e.g I.G Farben supported the Nazis
- Export based were not happy, department stores made 80% less in 1934 than 1929
- Law for the Protection of Retail Trade stopped formation of new stores and expansion of current ones
How did the Nazis shut down Trade Unions?
- Shut them down 2nd May 1933
- 6th May the DAF under Robert Ley was formed
- Membership was voluntary but it became increasingly hard to get a job without it
- DAF made it possible for big businesses to exploit its workers more
How was trade shut off with the USA and how did Germany cope with this?
- 1934 Germany failed to pay its debts to the US and trade collapsed
- ‘New Plan’ drew up treaties with other countries, e.g Hungary and Yugoslavia which involved exchanging goods instead of paying for imports
What was the crisis of 1935-36?
- 1935, countries wanted cash, Bulgaria began demanding cash for goods, not oil
- Germany still needed raw materials and was not self-sufficient
- Germany needed to import food, shortage of fats and meat
- Increasing exports went against Nazi Foreign Policy
