15) Nazi economic policies (1933-39)

• The New Plan


  Schacht in 1934

  Involved trade deals with other countries to increase German exports and secure raw materials
• Schacht's mefo bills


  credit notes that could be exchanged for cash at the Reichbank and ensured private companies had confidence they would get their money
• what did mefo bills achieve?


  promised 4% interest per annum if they kept them for 5 years so rearmament could be started without the gov having the funds to finance it
• autarky


  self-sufficiency
• 4 Year Plan


  Goering in 1936

  aimed to be war ready in 4 years based on autarky
• how was the 4 year plan done?


  controls on labour supply, wages, prices, foreign currency.

  Gave production targets and increased production on chemicals, iron and steel.
• How was the 4 year plan a failure?

  By 1939, only created enough ammunition for 6 weeks of war
• How was autarky a failure?

  In 1939, Germany still imported 1/3 of its raw materials
• Autobahns


  superhighways presented to show economic and technological prosperity.
• How many were employed from the production of Autobahns?


  125,000 at peak of construction
• Why was Autobahns a myth?

  only 3800 km out of the 7000 target made and stopped production in 1942
• How were employment figures a myth?


  unemployment figures didn't include those who Nazis didn't want in work, such as women

  employment figures inflated by including unpaid and occasional contract workers
• estimate of 'invisible unemployment'

  1.5 million workers
• The Volkswagen (people's car)

  promoted by strength through joy, persuading workers to pay into a savings scheme to eventually purchase one but workers never able to get enough to have one