Economic changes

• 'Work and bread'

  • Over 6 million Germans were out of work when Hitler came to power in 1933
  • In his election campaigns, he had promised the voters 'work and bread' if he became their leader
  • As soon as the Nazis took control of Germany they set up a number of schemes, programmes and organisations that aimed to get Germans back to work
• The National Labour Service (RAD)


  • All men aged between 18 and 25 had to spend 6 months in the RAD
  • They planted forests, mended hedges and dug drainage ditches on farms
  • Men in the RAD had to wear uniforms and live in camps, but they were given free meals
  • They were paid only pocket money, but at least it was a job - and because more people were working, the unemployment figures began to drop rapidly
• Public Work Schemes

  • In June 1933, the Nazis ordered the creation of a new network of autobahns (motorways) to link Germany's major towns and cities
  • This gave work to nearly 100,000 people and by 1938 around 3800 kilometres of highway had been built
  • At the same time, a huge number of new school and hospitals were built, again giving work to more people
• Rearmament

  • Rearmament is when a country rebuilds its armed forces (army, navy and air force)
  • Hitler was determined that Germany should become a strong military power again, so he ordered the building of new tanks, battleships, fighter planes and guns
  • Thousands of jobs were created, and huge government contracts made factory owners and bosses of large businesses a fortune
  • These were the people Hitler had promised to help if he got to power
  • Hitler also introduced conscription
  • From 1935, all males aged between 18 and 25 were forced to join the armed forces for at least two years
  • Within 5 years, the army grew from 100,000 to 1.4 million, giving even more people jobs
• 'Invisible' unemployment

  • The Nazis used a variety of methods to reduce unemployment figures
  • For example, women who gave up work to have a family did not count in the official figures
  • And part-time workers were counted as full-time
  • Also, the Nazis actually created jobs by sacking people
  • Many Jews were forced out of their jobs and were replaced by unemployed non-Jews
  • The Nazis then didn't count these newly-unemployed Jews in their figured
• Hitler's aims

  • One of Hitler's main aims was to make Germany a powerful nation that was respected throughout the world
  • Like most Germans, he felt that the country had been humiliated at the end of the First World War, when land had been taken away and the armed forces were reduced
  • Hitler knew that the way to get this land back was to start a rearmament programme
  • But he new that this could only be done if the Nazis controlled the economy and directed all factories, businesses and industrial production to do what the Nazis wanted
• The economy under Schacht

  • As soon as Hitler came to power in 1933 he appointed the respected banker, Hjalmar Schacht, as Minister of Economics
  • Schacht realised that Hitler's plans to build more weapons would cost a lot of money and need a lot of raw material, such as iron, steel, rubber and wood
  • But Germany didn't have all these goods so they had to be bought from other countries, which could be very expensive
  • So Schacht signed deals with countries in South America and south-east Europe to supply Germany with raw materials in return for German-made goods
  • For a short time, things went well - weapons production increased and unemployment fell
  • But Germany was still dependent on raw materials from foreign countries and the changes were happening far too slowly for the impatient Hitler
  • So Schacht was sacked and replaced by one of the Hitler's oldest and most loyal colleagues, Hermann Goering
• The economy under Goering

  • In 1936, Goering introduced a scheme, called the Four Year Plan, to get Germany ready for war
  • The main priority was to increase military production, so the Nazis ordered huge amounts of weapons, equipment and uniforms
  • This created jobs in steel factories, textile mills and shipbuilding yards
  • Very high production targets were set and achieved in industries like steel and explosives production
  • However, targets were not met in other key industries, like oil production
  • Indeed, despite the huge amount of extra goods and material produced under the Four Year Plan, Germany was still not ready for the long war it would become involved in from 1939
  • Also, Germany still needed raw materials from abroad, so Goering attempted to make Germany 'self-sufficient'
• A self-sufficient nation

  • The Nazis hoped to make Germany self-sufficient
  • This meant that they wanted to stop trading with other countries and rely entirely on their own resources
  • If Germany was unable to find particular goods or resources, they would find alternatives to the things it needed, or develop artificial substitutes
  • For example, German scientists found ways to make petrol from coal, artificial wool and cotton from pulped wood, make-up from flour, and coffee from acorns
  • Goering said in a speech, 'Would you rather have butter or guns? Shall we bring in lard, or iron? I tell you, guns make us powerful. Butter only makes us fat'
• Did the Nazis help the farmers?

  • Farmers had ben important supporters of the Nazis
  • Around 30 percent of the population were involved in agriculture and forestry
  • In the late 1920s, farmers were unhappy that they were suffering when other people were doing well
  • These farmers turned to Hitler because he promised to improve their lives
  • He also needed the farmers to produce more if the country was to become self-sufficient
  • Now in power, Hitler tried to reward farmers and save them from the worst effects of the Depression
  • He cut the taxes that farmers had to pay and guaranteed that they could not be thrown off their land if they got themselves into debt
• Did the Nazis help the farmers? pt.2

  • However, some Nazi policies annoyed farmers
  • Laws were introduced that stopped farmers dividing up their land and giving a part to each of their children
  • This was an attempt to keep the farms large and under control of the same family for years to come
  • Some farmers resented this, especially as some of the children who were no longer allowed to inherit land left the farms to look for jobs in cities
  • However, other farmers welcomed the idea as it meant that their farm was secure for generations
• Were Germans better off under the Nazis?

  • Working-class Germans such as shop workers, builders and secretaries made up the largest social group in Germany in the 1930s
  • Many of these people had not supported the Nazis before 1933
  • They joined trade unions, and voted for political parties like the Social Democrats and the Communists, who were dedicated to improving the lives of the working classes
  • But now trade unions, and all political parties except the Nazis, were banned, so Hitler needed to think carefully about what to do in relation to the majority of German people
  • He obviously wanted them to support what he was doing - but he also needed them under control
• Work and control

  • Through the National Labour Service, and the public works and rearmament programmes, the Nazis provided work
  • The army grew in size and weapons production increased too
  • More schools, hospitals and roads were being built, which created more jobs
  • Wages didn't increase for a few years, but at least jobs existed
• The German Labour Front (DAF)

  • An organisation that replaced trade unions
  • It promised to protect the rights of workers and improve condition
  • The DAF ran two schemes, which aimed to improve Germans' lives
  • Beauty of Labour: this scheme tried to improve the working environment by installing better lighting, safety equipment, new washrooms, low-cost canteens and sports facilities
  • Strength through Joy: this scheme organised leisure activities to encourage hard work. It was a reward scheme that offered cheap holidays, trips to the theatre, and tickets to football matches if workers met their targets
  • The DAF also had a scheme to help workers save for a car. Hitler himself helped design a 'People's Car', a Volkswagen, that most working Germans could afford
• Better off or not?

  • Although the Nazis fulfilled their promises to provide work, workers lost their rights because trade unions were banned
  • Workers could not quit without the government's permission and were banned from striking
  • People could also be forced to work as many hours as the Nazis required
  • The KDF did provide rewards for Germans, with free trips to the cinema and concerts. However, some holidays, such as cruises around Italy or skiing in Switzerland, were still too expensive for most working-class Germans
  • Food also cost more than it used to
  • Germany was trying to be self-sufficient and not rely on imports from other countries
  • As a result, there was less food in the shops, so shopkeepers charged more because of the high demand
• The impact of war

  • In the first few years of the Second World War, the German military forces won one battle after another
  • In 1940, Hitler had attacked and defeated 6 European countires within a few weeks of each other
  • Germans at home certainly felt the impact of the war, but the news from the war zones was always good and many Germans felt that Hitler was right when he said that war would make Germany very rich and powerful
  • Luxury goods, such as fur coats and perfume, from conquered countries began to find their way back into Germany, but most of these good went to high-ranking Nazi officials
  • However, the war soon turned for the worse
• Losing Germany

  • In 1941, Hitler's armies attacked the USSR
  • At first, German forces did well, but a freezing Russian winter forced the Germans to stop
  • Their guns wouldn't fire and they were poorly clothes
  • Soon the huge Russian army began to push them back towards Germany
  • In one battle at Stalingrad, over 80,000 Germans died and 90,000 surrendered
  • There were defeats elsewhere too, and then America joined in on Britain and Russia's side
  • By the beginning of 1944, it was clear that Germany was doomed to defeat
• Hardship on the home front - rationing


  • The German people soon began to realise how difficult war was when they were not winning
  • Supplies were needed for the soldiers, so sacrifices had to be made at home
  • There were severe food shortages, and by November 1939, food and clothing were rationed
  • For example, people were limited to one egg per week
  • Goods like soap and toilet paper were in very short supply and this led to some interesting alternatives
  • For examples, it was suggested that soggy, stewed pine needles could be used in a bath instead of soap
  • Hot water was also rationed to two days per week
  • The Nazis responded to these hardships by asking the German people to completely commit themselves to winning the war
• Hardship on the home front - severe labour shortages and refugees


  • In 1942, Albert Speer was made Armaments Minister and was told to organise the country for Total War
  • This meant that everything was entirely focused on making weapons and growing food for soldiers
  • Anything that didn't contribute to the war was stopped
  • For example, beer houses, dance halls and even sweet shops were closed
  • Letterboxes were boarded up
  • Factories were forced to stay open longer, but because male workers were now soldiers fighting in the war, large numbers of women were drafted in to work in them
  • By 1944, around 7 million foreign workers had been brought in from countries Germany had conquered to work as slave labour in the factories
• Hardship on the home front - bombing


  • From 1942, Britain and America began pounding German cities with bombs
  • Due to the impact of the bombs, there was no electricity, water, or transport, and panicked people left their homes to look for refuge in safer places
  • Indeed, there were thousands of deaths and injuries and people had to be retrieved from their homes by the medical services, which were at full stretch
  • The bombing caused flooding and gas explosions, and there was a constant danger of unexploded bombs
  • Unsurprisingly, support for the Nazis began to weaken