Nazi Economic Policy

  • Created by: amelia511
  • Created on: 03-05-18 08:52
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  • 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%
      • 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
      • 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

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