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WWII 1st half map assignment
WWII 1st half map assignment

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Ch.16.1 World War II

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World War II Names to Know Path to War

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Chapter 13 Notes
Chapter 13 Notes

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Economy of Nazi Germany



World War I caused economic and manpower losses on Germany led to a decade of economic woes, including hyperinflation in the mid-1920s. Following the Wall Street Crash of 1929, the German economy, like those of many other western nations, suffered the effects of the Great Depression, with unemployment soaring. When Hitler became Chancellor in 1933, he introduced new efforts to improve Germany's economy, including autarky and the development of the German agricultural economy by placing tariffs on agricultural imports.However, these changes—including autarky and nationalization of key industries—had a mixed record. By 1938, unemployment was practically extinct. Wages increased by 10.9% in real terms during this period. However, nationalization and a cutting off of trade meant rationing in key resources like poultry, fruit, and clothing for many Germans.In 1934 Hjalmar Schacht, the Reich Minister of Economics, introduced the Mefo bills, allowing Germany to rearm without spending Reichmarks but instead pay industry with Reichmarks and Mefo bills (Government IOU's) which they could trade with each other. Between 1933 and 1939, the total revenue was 62 billion marks, whereas expenditure (at times made up to 60% by rearmament costs) exceeded 101 billion, thus creating a huge deficit and national debt (reaching 38 billion marks in 1939) coinciding with the Kristallnacht and intensified persecutions of Jews and the outbreak of the war.
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