The+Economy+in+Nazi+Germany

=The Economy in Nazi Germany =


 * When they came into power in 1933 they had no detailed program for dealing with the economic problems that confronted the nation
 * They had prepared to take full advantage of the economic distress during the depression to win popular support before 1933, but came with so little plans that Hitler forbad discussion of economic matters in the party
 * In the 25 points of 1920 the economic aims of the movement were defined - ‘ We demand therefore the abolition of income unearned by work… we demand that profits from whole-sale trade shall be shared…we demand the nationalisation of all businesses.’
 * When Nazi’s came into power there were six million Germans unemployed – 1/3 of the workforce
 * The regime regarded unemployment as the most urgent immediate issue and applied full power of the state to remedy the problem
 * Within a year the figure had dropped to four million and by 1939 there was a labour shortage

===﻿ ﻿Employment, Farming, Industry, Conditions & KDF Movement ===

**1 . Employment **
 * In June 1933, the Nazis passed a Law to Reduce Unemployment.
 * The RAD (National Labour Service) sent men on public works; eg the autobahns.
 * Government spending rose, 1932–38 from about 5 billion to 30 billion marks.
 * Unemployment fell from nearly 6 million to virtually nothing.
 * Hitler built up the armed forces (e.g. conscription took 1 million unemployed).
 * The soldiers needed equipment, so this set steel mills, coal mines and factories back into production. The Luftwaffe gave jobs to fitters, engineers and designers.
 * The Nazi state machinery needed thousands of clerks, prison guards etc.

**2. Farming**
 * By the 1933 Farm Law, farmers were assured of sales and given subsidies.
 * The government kept food prices at the 1928 level.
 * **BUT** farmers were organised into the Reich Food Estate and strictly controlled (e.g., one rule stated that hens must lay 65 eggs a year).

**3. Industry**
 * The New Plan of 1934 stopped imports, and subsidised industry. This is called 'Autarky' - the belief that Germany should be self-sufficient.
 * Production rose, especially of oil, steel, coal and explosives.
 * In 1936, Goering was put in charge. His Four Year Plan proposed to get the army and industry ready for war in four years.
 * Employers were happy when workers were well disciplined.
 * **BUT** businesses were strictly controlled; they could be told to make something different/ were not allowed to raise wages/ workers could be sent to other factories.
 * Goering said: ‘Iron makes an empire strong; butter only makes people fat’.
 * Economists know now that these policies cause massive economic problems.

**4. Conditions**
 * The Nazis tried to make people proud (e.g. the film //The Beauty of Work// in 1934).
 * **BUT** trade unions were banned and all workers had to join the German Labour Front. They lost their right to strike for better pay and conditions.
 * Wages actually fell.
 * People who refused to work were imprisoned.
 * Wages and conditions on the RAD schemes were very poor.

**5. Strength through Joy (KdF) Movement**
 * Workers were offered cut-price holidays, theatre trips and concerts. In Berlin, 1933–38, the KdF sponsored 134,000 events for 32 million people (2 million went on cruises & weekend trips, and 11 million on theatre trips).
 * The KdF designed the Volkswagen (or ‘People’s Car’) ‘Beetle’, which it was planned to be able to buy for 5 marks a week.
 * The government made sure that everybody could get a cheap radio

(SOURCED FROM BREAD NOT BUTTER WEBSITE)





4 Year Plan

 ﻿ • Why 1936? – Impressed by Stalin’s Five Year Plan claims – Confidence restored to German economy  • Employment  • Hitler’s hubris  – Hitler impatient with Schacht’s cautiousness  <span style="color: #ff00ff; font-family: Arial,Helvetica,sans-serif; font-size: 110%;">• Goering keen to set up new re<span style="color: #ff00ff; font-family: Arial,Helvetica,sans-serif;">-armament programme   <span style="color: #ff00ff; font-family: Arial,Helvetica,sans-serif; font-size: 110%;">– Prussian empire eroded  <span style="color: #ff00ff; font-family: Arial,Helvetica,sans-serif; font-size: 110%;">– Rearmament not keeping up with political and diplomatic advances  <span style="color: #ff00ff; font-family: Arial,Helvetica,sans-serif; font-size: 110%;">• Period of Revolutionary Imperialism  <span style="color: #ff00ff; font-family: Arial,Helvetica,sans-serif; font-size: 110%;">• Spanish Civil War  <span style="color: #ff00ff; font-family: Arial,Helvetica,sans-serif; font-size: 110%;">• War initially planned for 1942-43  <span style="color: #ff00ff; font-family: Arial,Helvetica,sans-serif; font-size: 110%;">– Speeded up Nazification of the Armed Forces

<span style="color: #ff00ff; font-family: 'Arial Black',Gadget,sans-serif; font-size: 34px; line-height: 50px;">Strains On the Economy 1939
<span style="color: #ff00ff; font-family: Arial,Helvetica,sans-serif; font-size: 120%;">• Overheating economy <span style="color: #ff00ff; font-family: Arial,Helvetica,sans-serif; font-size: 120%;">– Rearmament and Public Works  <span style="color: #ff00ff; font-family: Arial,Helvetica,sans-serif; font-size: 120%;">• Shortages  <span style="color: #ff00ff; font-family: Arial,Helvetica,sans-serif; font-size: 120%;">– Raw Materials, Food, Consumer Goods, Foreign Exchange, Gold, Labour  <span style="color: #ff00ff; font-family: Arial,Helvetica,sans-serif; font-size: 120%;">• The armed forces competed for resources with industry  <span style="color: #ff00ff; font-family: Arial,Helvetica,sans-serif; font-size: 120%;">– Manpower, raw materials, infrastructure  <span style="color: #ff00ff; font-family: Arial,Helvetica,sans-serif; font-size: 120%;">• Wage Pressure  <span style="color: #ff00ff; font-family: Arial,Helvetica,sans-serif; font-size: 120%;">– Shortage of Labour  <span style="color: #ff00ff; font-family: Arial,Helvetica,sans-serif; font-size: 120%;">– Reluctance to recruit women  <span style="color: #ff00ff; font-family: Arial,Helvetica,sans-serif; font-size: 120%;">• Agricultural Problems  <span style="color: #ff00ff; font-family: Arial,Helvetica,sans-serif; font-size: 120%;">– Workers leaving countryside  <span style="color: #ff00ff; font-family: Arial,Helvetica,sans-serif; font-size: 120%;">– Price freezes  <span style="color: #ff00ff; font-family: Arial,Helvetica,sans-serif; font-size: 120%;">• Balance of Payments problem  <span style="color: #ff00ff; font-family: Arial,Helvetica,sans-serif; font-size: 120%;">– Imports growing  <span style="color: #ff00ff; font-family: Arial,Helvetica,sans-serif; font-size: 120%;">– Exports declining  <span style="color: #ff00ff; font-family: Arial,Helvetica,sans-serif; font-size: 120%;">• Budget not balancing  <span style="color: #ff00ff; font-family: Arial,Helvetica,sans-serif; font-size: 120%;">– International investors scared off  <span style="color: #ff00ff; font-family: Arial,Helvetica,sans-serif; font-size: 120%;">– Jewish finances already confiscated  <span style="color: #ff00ff; font-family: Arial,Helvetica,sans-serif; font-size: 120%;">– Reserves drying up  <span style="color: #ff00ff; font-family: Arial,Helvetica,sans-serif; font-size: 120%;">– Producing few goods of export value  <span style="color: #ff00ff; font-family: Arial,Helvetica,sans-serif; font-size: 120%;">• Reluctance to ask workforce to make further sacrifices for the re-armament programme  <span style="color: #ff00ff; font-family: Arial,Helvetica,sans-serif; font-size: 120%;">– Eg no rationing even contemplated  <span style="color: #ff00ff; font-family: Arial,Helvetica,sans-serif; font-size: 120%;">– Women not required to work  <span style="color: #ff00ff; font-family: Arial,Helvetica,sans-serif; font-size: 120%;">– Wage cuts avoided Helpful Video's:

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