7. nazi economy

    Cards (114)

    • German Labour Front (DAF) founded in 1933
    • Strength Through Joy (KdF) founded 1933
    • The Reich Food Estate founded 1933, created to promote agriculture, believed that Germany needed an additional 7 to 8 million hectares of farm land to achieve self-sufficiency in food.
    • The first 4 year plan, aimed at economic recovery, began in 1933.
    • Hjalmar Schacht was appointed economics minister in 1934.
    • In 1935, the National Labour Service (RAD) was founded. It was a paramilitary organization to help mitigate the effects of unemployment.
    • Conscription was introduced in 1935.
    • 1935, an agricultural crisis sparks the "guns versus butter" debate.
    • In 1936 the second Four Year Plan began.
    • In 1937 Hermann Goering was placed in charge of the Four Year Plan.
    • In 1937, Hjalmar Schacht resigned as Economics Minister due to rising Nazi control over the economy.
    • In 1937, Goering began nationalising major industries.
    • There were widespread labour shortages in 1938.
    • In 1939, Major firms, like IG Farben and Krupp were given government contracts and tax breaks.
    • By 1939, rationing had been introduced and despite significant rearmament, autarky had not been achieved.
    • In 1941, the invasion of the USSR put further strain on the economy.
    • In 1943 Germany was still producing non-essential products and materials.
    • In 1942, Albert Speer was placed in charge of the economy.
    • Fuel Crisis in 1944
    • The 'Scorched Earth' policy destroys more production facilities.
    • Hitler's 4 economic aims (1933)
      • ensure standard of living
      • resources for rearmament
      • move towards autarky
      • Resources for civil and architectural projects.
    • The Nazis cut taxes in farming , small business and heavy industry.
    • Nazis gave grants to ...
      • newly married couples to spend on furniture.
      • businesses to employ workers, pay debts or buy new machines.
      • homeowners to finance improvements/repairs.
    • Unemployment peaked at 5.6 million in 1932. In 1933 it was 4.8 million. By 1936, unemployment was at 1.6 million.
    • Between 1933 and 1934, 2.8 million jobs were created. Around 20% were directly through government schemes.
    • The Reinhardt Scheme in June 1933 committed RM 1,000 to public works schemes.
    • From 1935, conscription removed all 18-25 year old males from the unemployment register.
    • Mefo bills were used to to buy armament from Autumn 1933, they financed 1/5 of all military spending.
    • By 1934, there were import restrictions on wool, cotton, leather, fur and precious metals.
    • Steel and goods with a clear military purpose were never subject to import restrictions.
    • 25 new departments were created to issue import licences for an increasing number of controlled goods.
    • Trade agreements were signed with developing countries like Peru, Brazil, Ecuador, Nicaragua and Yugoslavia.
    • Schacht's new plan successes...
      • allowed the economy to rearm
      • balanced payments
      • increased demand for german goods.
    • The Nazi regime was able to finance its war effort through Mefo Bills (bonds) which allowed them to borrow money without having to pay it back until after WWII
    • Schacht's new plan limitations...
      • living standards dropped
      • the German textile industry failed
      • price of clothes rose
    • Poor harvests in 1934 and 1935 lead to a food shortage, Walther Darré lobbied for greater imports of grain to keep prices down.
    • Butter was rationed in 1935, the price of pork rose 30% 1934 to 1935. The rationing of bread was also considered as the Nazi economy was not strong enough to deliver both 'guns and butter'.
    • Autarky
      self sufficiency in societies, communities, states and their economic systems.
    • command economy
      an economy in which production investment, prices and incomes are determined centrally by the government.
    • Ersatz
      not real or genuine, made or used as a (inferior) substitute for something else.
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