Nazi Economic Policy

Revision cards on the Nazi economic policy

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  • Created by: Becky
  • Created on: 15-04-13 18:33

Economic Aims

Policy was about recovery then rearmament 

Economic aims:

  • tackle problems of depression
  • restore Germany to full employment - women & Jews didn't count. Work e.g autobahns or army
  • rebuild Germany's military and prepare for future war - Wehwirtsohaf
  • greater self sufficiency - autarky - didn't work (used substitutes)
  • win support of Mittelstand ( middle class)
  • corporativist government

so they didn't lose money buying foreign goods

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Problems

  • depression destroyed Weimar Republic
  • Germany short of essential raw materials
  • Lacked foreign currency to pay for imports
  • slump in world trade
  • 1932, 6 million Germans unemployed 
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Solutions

  • Hitler expanded public works scheme in 1932 - espcially building homes and motorways*
  • stimulated private economy, providing jobs for priavate firms
  • private firms*
  • * linked together, e.g to build homes they needed material to work with from private firms
  • tax concession and special grants e.g newlyweds
  • subsidies for hiring more workers in private sectors
  • some groups no longer eligible for unemployment relief e.g agricultural workers
  • Reich Labour Service ( RAD) and conscription took unemployed men off the offical register (extended to women in 1939)
  • armed services gew from 100,000 (1933) to 1,400,000 (1939)
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Hjalmar Schacht

  • appointed as President of Reichsbank, March 1933 then became Economics Minister in August 1934
  • his appointment reassured financiers
  • used deficit financing e.g mefo bills (was a credit note used on rearmament by deyaling real payment)
  • suspended debt repayments , Balance of Trade Deficit. Redressed with New Plan 1934
  • Bilateral trade agreements e.g the Balkan states where products and raw materials were bartered rather than bought or sold
  • increased economic influence over regions e.g Austria, Balkans and Czechoslovakia 
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