Download Nazi Economic Policy

NAZI ECONOMIC
POLICY
1) Economy brought under state control 1933-39
A) NAZI PROMISES AND
THE FULFILMENT
 * The needs of small farmers and smaller urban traders ( middle-class) to be
understood→
In 1933
•
All peasant debts were suspended
•
High tariffs on foreign food
•
Establishment of the Reich Food Estate
•
Introduction of the Reich Entailed Farm Law ( gave security for the Aryan
farmers/ 7.5.-10 hectares farms)
•
The Law for the Protection of Retail Trade; no new department stores
ESTABLISHMENT OF
WEHRWIRTHSCHAFT- A DEFENCE
ECONOMY
• The aim was to create self-sufficiency ( modern large scale farms
to be introduced)
• Rearmament with the help of the BIG BUSINESSMEN (cartels,
monopolies)
• In 1933 40 %
• In 1937 70 %
of German economy under monopolies´rule
( e.g. Krupp, Farben)
C) THE COMPROMISE
 Hitler had to please both the people and make Germany ready for
war→ introduction of ” GUNS AND BUTTER”-policy
- Germany could not invest so heavily on the rearmament because
they had to maintain reasonable standards of living
2 ) WA S T H E R E A N E C O N O M I C R E C OV E RY
IN 1933-1939?
 H. Schacht´s programme introduced in 1933→ to reduce
unemployment, to stimulate the economy, to ease the payments
problem
GET FAMILIAR WITH THE PROGRAMME ON PP. 211-212
AND TRY TO JUSTIFY THE CLAIM: ”Schacht´s programme was a
success”
WA S G E R M A N Y R E A DY F O R WA R I N
1939?
 4-year Plan introduced in 1936 / Göring
- self-sufficiency
- production of substitutes, synthetic materials, artificial
rubber
- chemical industry to be encouraged
-steelworks, heavy industry
-regulations of controling foreign exchange, targets for private
industry
 It was a success to some extent
 A growth in output in all areas, but overall targets were not met
 By 1939 1 /3 of German raw materials still imported, shortage of
foreign exchange to buy necessary goods
Tim Mason; German economy on a verge of a collapse in 1939→
made Germany to start the war ( the conflict between ” Guns and
Butter)
HISTORIANS VIEWS
 R. Overy; The war caused the economic crisis
 A.J.P. Taylor: Hitler had to keep up consumer production, he was
not for rearmament and for war
 B. Klein: Germany was ready for a short war
S P E E R ´ S P RO G R A M M E , 1 9 4 2 →