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Nazi Economic
Policy: Aims;
Policies;
Success?;
How far did
German
people
benefit?
What were the main aims of Nazi
economic policy?
What were the main aims of Nazi
economic policy?
1. Reduce unemployment (as he had
promised)
2. Help German farmers and workers
(as he had promised)
3. From 1936, prepare the economy
for war through the Four Year Plan
unemployment
Ruhr
export
Wall Street
Crash
Great
Depression
imports
1933
1923
Hyperinflation
crisis
raw materials
economic
economy
foreign
rearm
Lebensraum
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End
http://www.youtube.com/watch?v=IQUW4n5gBwc
How the Nazis reduced unemployment
(worcesterjonny)
The Four Year Plan (worcesterjonny)
1. Take notes
2. How did Hitler reduce unemployment?
Policies: how did the Nazis reduce
unemployment?
1. Public works schemes – from 1933
2. Encouraging women to leave jobs – from
1933
3. Forcing Jews out of jobs – from 1933
4. Conscription – from 1935
5. Rearmament – from 1936
Invisible
unemployment
Minister of the
Economy – Dr. Hjalmar
Schacht
• Became Minister 1934
• Loyal supporter of Hitler
and a brilliant financial
expert….
• Trusted by German
business and foreign
leaders and bankers.
• Devised THE NEW PLAN.
The New Plan
• Imports were limited…
• Government spending – was channelled into a
wide range of industries
• Unemployment – was tackled through:
o work creation projects;
o compulsory Labour Service;
o Conscription; &
o discrimination against Jews and Women
The National Labour Service
•
•
From 1935 for men 18-25…
Various jobs – e.g. digging
ditches, planting forests.
•
Given pocket money rather than
wages
•
Jobs later extended by to include
motorways, hospitals, schools…
•
… created thousands of jobs
Rearmament
• 1935 – Hitler ignored ToV
and started to rearm
Germany.
• He then introduced
conscription. The army
increased by over 1 million
men between 1935 & 1938
• The armaments industry
grew, generating thousands
of jobs.
German Labour Front
• Run by Dr Robert Ley…
controlled the workers in a
number of ways
• Trade Unions abolished
• Strikes made illegal
• No limit on workers hours/week
• Not possible for workers to leave
a job without permission from the
Front
• Strength Through Joy – provided workers
with incentives like cheap sports and theatres
tickets and cut-price holidays.
• Many workers paid into a scheme to buy a
cheap “People’s Car” – The VW Beetle – but
no-one got one because of WW2 starting
• Beauty of Labour – was a scheme to improve
factory conditions – e.g. better canteens &
washrooms
Which solution would
have been most
favoured by the
Nazis and which one
by the people?
Success???
• Yes – unemployment reduced to under 1m by
1937 and Hitler was able to rearm..
• Hitler was lucky (again!!!) – his recovery was helped
by the world economic recovery at this time…
• But… Schacht warned that Hitler was rearming too
quickly…
• … he said the German economy was not ready…
• … in 1937 he resigned… later he ended up in a
concentration camp…
• … he was replaced by Herman Goering.
• Goering was a leading
Nazi and head of the
Luftwaffe…
• He had fought in WWI, and
was utterly loyal to Hitler…
• BUT he was no expert in
economics….
• The Four Year Plan was intended to get
Germany ready for war in 4 years.
• The aim was for Germany was to be selfsufficient in materials needed for war such
as oil, rubber, and steel – this policy was
known as “Autarky”
• The plan involved tighter controls on
imports, exports, labour (including forced
labour) and prices…
• But by 1939 Germany was only ready
for a short war… not the long war that
WW2 ended up becoming.
Questions
• Why would Hitler want Sources 41 and 42 (p.
172) to be published?
• Read Source 40 (p. 171). What did Albert
Speer want and why did he fail?
• Use your knowledge of Hitler’s policies to
explain source 43 (p. 173).
Homework next term – 2 tables:
how did workers benefit (for and
against) how did peasants benefit
(for and against)
Alt if needed: 4 year plan video
Also: were people better off
worksheet