Economy Flashcards
What Economic Problems did Hitler Face?
- Unemployment - 6 mil in 1933
- Debt - Versailles
- Embarrassment
- Wall Street Crash
How did Hitler Initially Deal with the Economic Issues?
- He had no program/solution
- Was careful not to become tied down to details of an economy policy
- More concerned about the economy as a way of solving political problems
- “avoid all detailed statement concerning an economic program of the government” - {Hitler to Cabinet in Feb. 1933}
- “Hitler treated economic policy as the means by which a war economy could be built and a victorious war of revenge and conquest” - {Collier}
What Dilemma did Hitler Face?
- An economy with prosperity as its priority OR an economy capable of sustaining war
Who were the Economic Ministers During the Nazi Regime?
- Schacht (1934-1936) - wanted to create prosperity
- Goering (1936-1939) - wanted a war economy
- Todt (1940-1942) - wanted a sustained war economy
- Speer (1942-1945) - wanted a sustained war economy
Who was Schacht + What did he Believe?
- Was in control of the early economic policy
- Conservative/Not a Nazi
- President of Reichshank
- Believed state should be involved in creating work + stimulating economy - continuation of Weimar policy
What did Hitler Allow Schacht + Other Businessmen do in the Short-Term?
- Run economy
- Restore confidence
- Reduce unemployment
- Establish the conditions to allow rearmament to take place
Describe Schacht’s New Plan (09/1934)
-Creating jobs through schemes (e.g RAD)
- Controlled wages and prices carefully - no trade
unions-
- Spend money to create money - speculate to
accumulate e.g.
Debt -> Money Back -> Help Employment
What were Schacht’s Other Economic Policy?
- Imports were controlled - needed permits
- Imports (e.g. raw cotton/wool) cut in order to satisfy the import demands of heavy industry
- Tariffs were introduced
- Agreements made with economically weaker nations- Germany’s advantage - exchanging finished products for raw materials
- Gave financial help to exporting companies
- Mefo Bills
Describe Mefo Bills
- Bonds given by government as a payment for work
- Banks could hold for 5 years at 4% interest OR could be cashed in
- Used by government to finance work schemes
- e.g. No Inflation = No More Money Printed
What were the Successes of Schacht’s Economic Polices?
- 60% industrial increase
- Workers couldn’t strike
- Mefo Bills - didn’t have to pay workers straight away - 4% interest
- Economy + Production doing well
What were the Failures of Schacht’s Economic Polices?
- High unemployment + figures weren’t accurate (women/Jews/scheme workers not included)
- Government has too much control
- In debt due to spending
- Shortage of raw materials
What was Goering’s Four Year Plan?
- Increase Autarky
- Prepare Germany for war in 1940
What does term ‘Guns Not Butter’ Mean?
- Germany’s priority was rearmament (guns) rather than consumer goods (butter)
- Resulted in shortage of goods consumer goods - created the need to control imports/demands of rearmament and increased spending power of German workers (1/2 employed in the rearmament industry)
What were Goering’s Main Economic Policies?
- Four Year Plan
- Guns not butter
- Increases production
- Control imports
- Autarkey
What were the Successes of Goering’s Economic Polices?
- Coat + Industry increased
- Exports increased
- Individual decreased
- Ersatz (sub products)
