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


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