Nazi Economic Policy
- Created by: amelia511
- Created on: 03-05-18 08:52
View mindmap
- Nazi Economic Policy
- Schacht's economic strategy
- He was President of the Reichsbank and a respected International Financier
- Aims to help small businesses and agriculture
- Tariffs on imports to protect German farmers
- Reich Food Estate
- More security of land ownership
- Public works
- 'Law to Reduce Employment' and Reich Labour Service ways to increase employment
- Reich Labour Service was a compulsory military conscription, where they were unpaid for 6 months
- Rearmament main focus of investment
- First three years directed at:
- Reforestation
- Land Reclamation
- Vehicle industry and improving roads
- Expansion of housing sector
- To increase infrastructure increased employment and it increased government expenditure by nealry 70%
- 'Law to Reduce Employment' and Reich Labour Service ways to increase employment
- The Balance of Payments problem
- 2 underlying worries:
- fear of rapid increase in demand would rekindle infaltion
- rapid increase in demand would lead to the emergence of a balance of trade deficit
- Inflation never ended up materialising because of the lack of demand and strict control on prices and wages
- Germany was importing more than exporting
- Schmitt wanted to reduce unemployment by consumer goods, instead of rearmament
- 2 underlying worries:
- The 'New Plan'
- Comprehensive control by the government of all aspects of trade, tariffs capital and currency exchange
- Dictated what could be imported, and would could not, such as wool and cotton would not but metal was needed for heavy industry
- Bilateral trade treaties- trade with the Balkans
- The Reichsmark currency used to buy products
- Mefo Bills- like a credit note which would disguise government expenditure
- The Four Year Plan
- Import demands for rearmament and consumption of goods increased
- Hitler's war aims and development of the Nazi economy:
- The German armed forces must be operational within 4 years
- The German economy must be fit for war within 4 years
- Expand rearmament and autarky
- Regulate imports and exports
- Control key sectors of the labour force
- Increase the production of raw materials
- To develop substitute products
- Increase agricultural production
- The effects:
- Nazi control over the German economy became tighter
- Production of a number of key materials such as aluminium and explosives had expanded greatly
- It fell a long way short of the targets in the vital commodities of rubber and oil
- Had succeeded in the sense that Germany's reliance on imports had not increased
- Schacht's economic strategy
Comments
No comments have yet been made