Economic Policy - Germany
- Created by: RConwa_y
- Created on: 07-05-18 18:27
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- Economic Policy
- Goring's Four Year Plan
- The 1936 plan aimed to increase rearmament and autarky
- To increase agricultural production and the production of raw materials
- Develop ersatz products
- Control the labour force and prevent inflation
- Regulate imports and exports in favour of rearmament and at the expense of agriculture
- Schact's New Plan
- The plan gave the government control over all trade, tariff, capital and currency exchange
- The government decided which imports were allowed - giving priority to heavy industry
- Bilateral trade treaties were signed
- Germany bought goods on the condition that the Reichmark was used to buy German goods
- Mefo bills were introduced
- The plan hid the balance of payment problem. By 1936 this was getting worse. Schact wanted to reduce arms expenditure ("Guns or butter" debate)
- The position of workers
- Schact's policies led to a decrease in unemployment to 1.6 million by 1936. This was partly due to conscription in May 1935
- Workers lost many rights. Independent unions were banned and replaced with the German Labour Front or DAF
- Many were happy to have a job even though real wages only surpasesed 1929 levels in 1938; orking hours rose from 43 hours in 33 to 47 in 1939; those working in consumer industries stuggled
- Schact's economic strategy
- Schacht was president of the Reich Bank 1933-39 and minister of economics, 1934-37
- He followed a policy of public investment, which resulted in a policy of deficit financing
- Set interest rates at a low level
- Rescheduled the debts of local authorities
- Gave farmers and small businesses assitance
- Introduced public works
- Goring's Four Year Plan
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