Nazi Economy

  • Created by: Alice7237
  • Created on: 18-05-18 11:06
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  • Nazi Economy
    • Recovery (1933-36)
      • Used indirect measures such as tax cuts and grants for married couples, businesses etc
      • Reinhardt Programme (1933)
        • Public work schemes in order to improve infrastructure - RAD employed 84,000 at peak
        • Helped reduce unemployment to 1.7 million by 1936
        • Employment schemes meant that 20% of jobs were created through this (133-34)
      • Start of rearmament
        • Conscription became compulsory in 1935
        • Used Mefo Bills which hid extent of rearmament (12 billion spent through this)
      • New Plan (1934)
        • Hoped to try and imports and trade/fix balance of trade
        • Created 25 new departments
        • Trade agreements with developing countries in east  where they could get good trade deals
        • 1934 - 80% of all farm produce made in Germany
      • Unemployment  decreased massively to only 1.7 million in 1936 - consider removal of women and Jews
      • Reich Food Estate (1933)
        • Meant that food prices and wages were regulated (100,000RM fine for non-conformance)
        • Meant that farms couldn't be bought by bigger companies ensuring family farms
      • Law for the Protection of Retail Trade (1933)
        • stopped new stores from opening and old stores from expanding
      • DAF only trade union (1933) - easier to exploit
    • Radicalisation (1936-39)
      • Second Four Year Plan (1936)
        • Focus on autarky and create command economy
        • Introduction of synthetic materials (ersatz) e.g. Buna - heavily expensive and inefficient
        • Success? Did hit targets in coal and iron exports doubled but other areas suffered
        • Became self-sufficient in bread, potatoes and sugar
        • 1937, military leaders requested 750,000 tons of steel but only received 300,000
        • Military leaders advised Germany would be ready for war in 1943
      • Focus on rearmament
        • Compulsory in 1935
        • 1937 -  military commanders said they only had 1/2 of what they needed
        • By 1939, only had 6 weeks worth of munitions
      • 'Guns or Butter Debate'
        • either ration and decrease support whilst rearming or keep same imports but less rearming
        • By 1937, still 17% of food was imported
        • Price of pork rose by 30%
      • Success? - Not much as focus on autarky ruined economy and no targets were really met
      • Meant rising inflation and debt as producing but stockpiling
    • Chaos and rationalisation (1939-45)
      • Problems at first
        • Too many conflicting departments - Ministry of Four Year Plan, army, economics, navy
        • Nazis who knew nothing of war were put in high positions
        • Army and Waffen ** faced many conflicts on battlefield
        • Huge labour shortages
        • Unrealistic targets to work in uneconomic sense
        • Goering held many roles and so couldn't manage all tasks effectively
      • Rationalisation
        • Albert Speer made minster of war and munitions (1942)
        • Central Planning Board set up (1942)
          • Stopped all non-essential war production e.g. post war planning, makeup
          • standardised goods and created production lines so that machinery on battlefield could be fixed easily
          • removed conflicting areas so that one department is in charge of one area
      • End of War Problems
        • Allied bombing had destroyed infrastructure (1944/45)
        • Loss of land and raw materials meant less production
        • Foreign workers sabotaged goods
        • Nazi ideology meant loss of workforce

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