Economy, Business & Workers Under Nazi Germany
What was Schacht's New Plan?
Schadt was a financial expert and President of the Reichsbank. He was responsible for helping Hitler to achieve his economic aims - reduce unemployment, create jobs through rearmament and make Germany economically self-sufficient. He was eventually sacked and replaced by Goering in 1936.
Schadt was not a Nazi but he did admire Hitler. He was a brilliant financier and Hitler needed him to find ways of paying for rearmament because Germany lacked raw materials such as oil, rubber etc. Through his New Plan, Schadt's rigorously controlled everything that was imported into Germany.
Schacht made new regulations:
- Restricting imports
- Businesses needing permits in order to import materials.
He also came up with clever financial schemes:
- Mefo Bills - a phoney company that paid companies in credit (IOUs). This allowed Hitler to rearm in secret.
- Trade deals with other countries.
Results: The plan helped to pay for rearmament but Germany was still dependent on imports of raw materials.
What was Goering's Four Year Plan?
Hitler wanted Germany ready for war in four years' time. Goering was put in charge of the 4 year plan in 1936. Its aim was to achieve Autarky or 'self sufficiency' (Hitler wanted to ensure Germany could produce enough goods and raw materials itself so it didn't need to rely on imports. In order to achieve Autarky, the Four Year Plan:
- Controlled imports and production levels.
- Set targets for big businesses to meet.
- Threatened to set up Government run opposition businesses (e.g. Goering Steelworks) if big businesses failed to meet their targets.
- Experimented with producing artificial raw materials e.g. making synthetic rubber
What were the results of the 4 year plan?
The plan did create jobs (eg factories focused on rearmament)…