Nazi Economy- 1933-1939

Reducing Unemployment

Pre-Nazi Germany- unemployment peaked at 8 million
Introduced Law to Reduce Unemployment in June 1993
Also expanded was RAD and establishment of public work schemes for those aged 19-25
Reducing unemployment would help improve politics of Germany as well as proving the "Hitler Myth"
Schemes no doubt worked- unemployment reduced from 25.9% in 1933 to 7.4% in 1939

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Hjalmar Schacht implemented the New Plan in 1943
Covered a number of things on how to fix economy including:
Mefo Bills- credit notes issues by Reichsbank, held for 4-5 years with 4% interest- v. popular
Bi-lateral trade treaties set up with South East European countries- gave Germany more of an influence there
Battle for Production set up in 1943 to 1935 to help increase grain production but this did work- only area where little was achieved
Transport system improved- Autobahn set up
Wage and price controls used to lower inflation
German GDP increased by 40% and production increased by 60%
Schacht's successes were a precursor to rearmament and autarky

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Helped brought about through Herman Goring and Four Year Plan (FYP)
Military expenditure increased from 10bn to 17bn
Luftwaffe was set up, ammo created and conscription was also set up to prepare Germany for WW2
Rearmament helped increase production by 60% and helped expand German govt.

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Also encompassed within FYP was ability of Germany becoming self-sufficient- done through autarky
Goring helped to produce synthetic rubber and oil to help for WW2
Autarky did not really work as it was expensive and drained German economy
By 1938 balance of trade deficit was 432bn RM and so therefore prices remained at a fixed level so too did wages as Nazi govt. did not want to press the consumer too much- one reason why Schact resigned
Autarky was the sole area where the Nazis did not achieve any economic fortunes

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