Guns V Butter Debate

Notes on the Guns v Butter debate for Edexcel AS Nazi Germany module

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The Guns v Butter Crisis
1936 was a turning point for the economy in Germany. There was a divide between the two
commodities:
BUTTER GUNS
Hjalmar Schacht feels there Hermann Goring Commissioner
needs to be a balance of Raw materials (Hitler created this
between war and living job because he wanted him)
standards. 1936 he advocates
1937 Walther Funk becomes
ADVOCATES the focus to be on consumer
minister of economics. Was more
(supporters goods, slower rearmament
passive and followed Goring's lead
) and slowing of debt (stopping
government overspend) Hitler
Major industrialists and Some businessmen (not big
businessmen e.g Krupps ones) to get into Hitler's good
favour a slower, more books
manageable rearmament
Military more in favour of
Schacht's ideas. Think Hitler is
being unrealistic
Schacht to begin with did Goering produces the "Four
favour rearmament and Year Plan"(1936):
autarky. By 1936 his big
The aim was to be ready for war for
concern was the balance of
1940 although they planned to be in
STRATEGY payments crisis
war by the mid 1940s
(importing more than
exporting) which made him Government control on industry
change his mind. He tries to (control wages and prices)
lower imports and raise Rearmament
exports by putting regulations
on imports as a result of Autarky
protectionism Neglects consumer goods
"Protectionism" (tariffs put Big drive for synthetic goods, e.g:
on imports) in other coutries
"Hermann Goering Werke"
He also forms bilateral Was an attempt to produce iron
trade agreements (but very low quality) and wasn't
product swapsbartering, very economically sound
mainly SE Europe Huge ironworks in central Germany
However, in 1937 he is fired as promoting low quality iron ore
Minister for Economics
(because he was too radical
or didn't agree with Hitler??)
Evidence...
PRO BUTTER PRO GUNS
Source 12.22 % major foodstuffs 193639: 2/3 of German investment was in
produced in Germany increased from 19278 war industries
at 68% to 19389 at 83% in line with autarky
Source 12.27 " 1/3 troops had inadequate Food rationing was introduced in Germany in
equipment" they would have been better 1939. It did not begin in Britain until 1941
prepared if they focused completely on
rearmament
1

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