Economic Policies

How the economy affected peoples lives

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  • Created by: Moodymoo
  • Created on: 09-02-14 11:54

Agriculture

  • Hugenburg banned foreclosure (prohibited banks from selling farms when the farmers were in debt
  • Put import taxes on foreign agricultural products
  • Made margarine manufacturers use more buttermilk in their products (which they had to buy from farmers)
  • Reich Food Estate, controlled agriculture
  • Ensured farms were passed on to eldest son, not split up
  • Announced battle for food to persuede farmers to grow more                                     

                            (http://3.bp.blogspot.com/-Ts5VLwGa5uc/UO1J3Xn_mtI/AAAAAAAAAGk/AhX3IrwFCxU/s1600/carrot.jpg)

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Successes

  • Farmers saw their incomes increase by about 40%
  • Food production increased by 20% which meant Germany was self sufficent in :

(http://i.telegraph.co.uk/multimedia/archive/01807/bread_1807973b.jpg)(http://www.treco.co.uk/blog/wp-content/uploads/2013/04/grain.jpg)(http://potatosmack.com/wp-content/uploads/2013/12/iStock-potato.jpg)(http://blog.positscience.com/wp-content/uploads/2014/01/sugar-cubes.jpg)(http://cdni.wired.co.uk/1920x1280/k_n/meat.jpg)

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Failures

  • Famers grew to hate the Reich Food Estate
  • Food production was not large enough to feed entire German population without importing food
  • Autarky failed

 

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Industry

  • Leader is Schacht
  • Illegal to pay foreigners in their own currency, encouraged foreign countries to accpet German goods as payment instead of cash
  • Limited amount of profit so people had to re-invest into business
  • Germany IMPORTED more than EXPORTED
  • Created the guns or butter crisis         
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Guns

  • Goering incharge
  • Guns = rearmament
  • Hitler wanted to conquer Ukraine for resources so had to be 'ready for war'
  • Forbidden under the 'Treaty of Versailles' so had to hide it under the RAD

                            (http://hill-kleerup.org/blog/wp/wp-content/uploads/2012/12/HK_guns_2_by_b1ohazard90uk1.jpg)

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Four Year Plan

  • Conscription
  • Set up Airforce (Luftwaffe)
  • Demanded Guns instead of Butter
  • Called for a battle of production
  • Wanted to find alternatives for things like oil and rubber
  • Army grew from its limit
  • Created jobs (army and making equipment)
  • Schacht argued wouldn't provide long term stability
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Unemployment Figures

  • 1933. 3.8 million unemployed
  • By 1939, unemployment was only 0.3 million

This was great for propaganda

HOWEVER: They were limited because

  • women werne't included
  • Jews were sacked and jobs were given to Germans
  • Unemployed were obliged to accept any job given to them otherwise classed as 'work shy' and imprisoned
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RAD and DAF

National labour service

  • Hitler needed to tackle unemployment figures
  • RAD provided jobs he had promised
  • Gave men jobs in work schemes, e.g building schools, motorways
  • Had to wear uniform, lived and worked in camps, small wages

German Labour Front

  • Abolished trade unions
  • Bosses couldn't sack workers on the spot
  • Could not leave a job without governments permission
  • Limitations on the hours a person could work a week were abolished
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