economy

• 6.1 million unemployed in 1932
• Public works and the creation of jobs aims were to recover from the depression and reduce unemployment
• PW (public works): in June 1933 the 'law to reduced unemployment' renewed and the voluntary labour service employed 18-25 and the Reich labour service established in 1935 with compulsory military conscription.
• PW: dramatic growth in jobs as 1936= 1.6 million
• PW: one billion reichsmarks invested into building roads and conscription helped employ a large number of the youth
• PW: voluntary labour service employed 500,000 by 1935
• PW: Germany imported more raw materials while failing to increase expirts, unemployment fell to 2.5 million in 1934 but did not fall again till 1936
• PW: men had to do 6 months work service which was poorly paid and involved hard labour. Unemployment figures did not include women or Jews
• Schacht's new plan September 1934 aimed to control economy and stimulate growth
• Schacht created financial benefits for farmers as they supported the Nazi's early 1930-33, the 'new plan' provided compensation control by government on tradse, tariffs, currency exchange
• Schacht created bilateral trade treaties with south-east Europe so Germany had power over the Balkans.
• Schacht: by 1936 unemployment had fallen to 1.5 million, industrial production increased by 60% and the introduction of Mefo bills helped avoid inflation
• Schacht however: reichsmark had 237 different values in countries, imports of cotton and wool cut, Mefo bills disguised government spending and policy of deficit financing grew government spending by 70% from 33-36
• Goering's 4 year plan aimed to increase armaments and achieve autarky; prepare for 'total war'
• Schacht resigned as economics minister in 1937 and replaced by the weak Walther Funk
• when war broke out Germany still relied on foreign supplies for 1/3 raw materials
• Schacht proposed a reduction in arms expenditure as to increased industrial goods however this was unacceptable to the Nazi's and led the debate 'guns or butter'
• Goering became 'economic dictator'
• rearmament involved 1/4 of workforce and 2/3 of German investment was directed towards it
• Tim Mason says the economy was growing too quickly
• rearmement led to shortages in many ares; consumer goods and raw materials. Labour shortages and discontent among the workers increased.
• expenditure and deficit had grown and Hitler was pushed into war too early, they would be ready for war in 1943.
• real wages only surpassed 1929 levels in 1938
• working hours rose from 43 in 1933 to 47 in 1939