Nazi Economic Policy and Workers' Lives

In May 1933 all Trade Unions were banned and striking became illegal. They were replaced by the DAF (German Labour Front), which was led by Dr Robert Ley.

The DAF tended to side with employers when it came to workplace disputes, this meant workers found it harder to move jobs and working hours increased. However, wages went up slightly and prices and rents were strictly controlled.

The Nazis wanted to keep workers busy during their free time so they wouldn't question Hitler's regime.

Strength Through Joy was an organisation set up to provide leisure activities such as free concerts, night classes, sporting activities, and to provide incentives such as cheap/free holidays for loyal workers.

Volkswagen savings scheme - workers were provided with a scheme that would allow them to buy a Volkswagen. No one received the cars and it was really a scam to fund rearmament.

The National Labour Service (RAD) was set up to run public work schemes. Motorways and hospitals were built by men who lived in tents and they were only paid pocket money - cheap labour.

By 1935 all men aged 18-25 had to spend six months in the RAD.

Conscription was introduced in 1935. In 1933 there were 100,00 in the German army. By 1939 there were 1.4 million.

Reducing unemployment was one of Hitler's greatest achievments and a promise that had gained him followers. In 1933 six million people were unemplyed but by 1939 it was only 300,000.

• RAD - provided jobs and was eventually made compulsory.
• Women and Jews were slowly forced from jobs which were given to the unemplyed.
• Women and Jews were not included in the unemployment rate.
• Conscription was introduced in 1935.
• Arms factories provided jobs for people as Germany prepared for war.

In 1933, Hitler appointed respected economist Hjalmar Schacht as President of the Reichsbank and later the Minister for Economics. His main aims were to improve the economic state of Germany.

• Welfare spending was cut.
• The amount of goods imported into Germany was cut.
• Trade agreements were made with other countries.
• Focused spending on key industries.

However by 1936, Hitler was keen to prepare for war, but Schacht thought this would harm the economy. Hitler started to ignore Schacht and he eventually resigned.

Hitler appointed Hermann Goring to take over economic policy. His plan was to help Germany achieve a state of autarky and prepare for war within four years.

• New factories were built.
• Industry was placed under strict government control.
• Target were set for the production of oil, rubber, and steel.
• Industries were incouraged to develope substitues for raw materials 
• Targets were set to increase food production.

However by 1939, Germany was still importing over 1/3 of its natural resources. Hitler knew the only way to achieve autarky was to invade other countries for their resources.