The Third Reich - Economy 1933-9 Flashcards
In 1934 there was a balance of payments problem - why? (2 reasons)
No increase in exports plus low gold and foreign currency reserves.
What did unemployment reduce to in 1933 due to Schact and Schmitt’s control of the economy?
2.1 million (from 5.6 million)
When did Schact replace Schmitt as minister for economics?
1934
What was Schact’s “new plan”?
He have the government total power in the economy - trade, tariffs, currency exchange, and all imports had to be allowed or declined.
What were the “bilateral trade treaties”?
Treaties with various countries in the area of trade, but they used barter instead of foreign currency.
What were mefo bills?
They were a government guarantee of payment for goods from German industries, and could be held for up to 5 years with an interest rate of 4% per year.
When was the guns or butter crisis and who supported which side?
1936 - due to high military expenditure. Hitler and Göring were on the guns side “guns make you powerful, butter just makes you fat” and Schact was on the butter side - wanted to increase production and exports.
When was the Four Year Plan initiated?
1936.
What were the aims of the four year plan? (Three things)
1) to expand rearmament
2) to gain autarky
3) to make Germany war ready by 1940
When and why did Schact resign?
1937 - because he was being undermined by Göring’s office of the Four Year Plan.
At the end of the four year plan, Germany were still dependent on foreign suppliers for what portion of their raw materials?
1/3
The output of what two products significantly increased as a result of the four year plan?
Aluminium and explosives.
Only half the oil target of the four year plan was met in 1942, two years after the Plan’s end - true or false?
True.
Did Göring have financial experience?
No!
