CIE IGCSE History - WW2 and the Economy

what were Hitler’s economic aims?

• to reduce unemployment

• to build up the German armaments industry and to rearm the air force

• to make Germany economically self-sufficient so it could not be blocked

what word is often used to describe complete self-sufficiency?

autarky

how many people were unemployed in 1933?

6 million

what were the Nazi’s two key economic plans?

1) The New Plan

2) The 4-Year Plan

when was the New plan enacted?

1934

who proposed the New Plan?

Schacht

who was Schacht?

• Reichsbank president in 1933

• Minister for the economy in 1934 - loyal Nazi

what did the New Plan aim to do?

• improve the economic state of Germany

• help Germany to recover from the Great depression

what did the New plan do?

• limited imports - frequency, volume and type

• made trade agreements with individual countries to supply raw materials that Germany wanted (e.g. Hungary 1934 - butter, veg oil - in return for industrial materials)

• reallocate government spending to uncontrolled industries - wide range

• reduce unemployment

how did the New Plan reduce unemployment?

• implemented work creation projects e.g. construction

• began the compulsory labour service

• conscription (1935)

• dismissed Jews

what major Germany-wide construction project did the Nazis undertake?

construction of the Autobahn

in what ways was the New Plan successful?

• between 1934-36 it solved economic crisis and enable rearmament

• helped by end of GD

how did the New plan fail?

• by 1935 Hitler wanted to prepare Germany for war and rearm faster

• Schacht said that this was impossible

• soon lost his power and resigned in 1937 - ended up in concentration camp

• replaced by Goering

when did Germany begin to convert to a war economy?

1936

when did Germany fully convert to a war economy?

1942

what plan did Hitler implement to begin preparations for war?

4-year plan

who proposed the 4-year plan/was in charge of it?

Hermann Goering

who was Hermann Goering?

• 2nd in command to Hitler

• head of Luftwaffe

• president of Reichstag

what were the aims of the 4-year plan?

• to prepare Germany for war in 4-years

• to achieve autarky in materials needed for war

what did the 4-year plan do?

• increased production of raw materials needed for rearmament

• persuaded big businesses to produce key synthetic raw materials like rubber, fuel and textiles

• reduce imports further

• tighten controls on prices and wages

• build new industrial plants e.g. Hermann Goering Works

what raw materials were needed for rearmament?

• coal

• iron ore

• oil

• metal

• explosives

what was the effect of the 4-year plan (stat)?

• in 1939 Germany still depended on foreign imports for 1/3 of raw materials

• armament had taken precedence over agriculture

• Germany could only become fully self-sufficient if it conquered other countries

what slogan was used to describe how armament had taken precedence over agriculture?

‘Arms not Butter’

how did big businesses benefit from Nazi economic policy?

• government contracts were offered in two main areas: production of building materials, and munitions

• this provided steady, guaranteed income and increased profits - benefitted big business owners

in what ways was Nazi economic policy successful?

• rearmament spending increased

• construction spending increased

• unemployment decreased

how did government spending change from 1932-39 (general)?

• increased, as did debt and expenditure

• investment also increased

how did government spending on rearmament change, 1932-38?

2 → 17 billion RM

how did government spending on construction change, 1932-38?

2 → 8 billion RM

how did unemployment change, 1932-38?

decreased by 5 million (6 → 1)

what were the limitations to Nazi economic policy successes?

• none positively affected Jews or other persecuted groups

• all preparing for war - many who benefitted would die

• negatively impacted farmers as all money went to industry

when was rationing introduced in Nazi Germany?

1939 - greater scale than Britain

what was rationing like in Nazi Germany?

• actually meant that 2/5 Germans ate better than they did before

• allowed 1 egg a week

• clothes, soap and hot water were all rationed

how did WW2 go for the Nazis up to 1941?

• well

• lots of luxury imports from conquered countries - either went onto black market or to loyal Nazis

when did the war start to go badly for the Nazis?

1941 with Battle of Stalingrad and invasion of USSR

what propaganda campaign was launched in early WW2?

• between Dec 1941 and Jan 1942 - gave 1.5 million furs and 7 million woollen garments to soldiers

• winter aid

when did preparations for total war begin?

1942/3

what did preparations for total war encompass?

• all parts of society geared towards war effort

• anything that did not directly contribute was ended/shut - sweet shops, professional sport

• civilian clothing manufacture ended - exchange shops opened

what problem arose in 1943?

severe labour shortages

how did the Nazis deal with severe labour shortages?

• women drafted into workforce

• foreign workers/POWs forced to work in camps (ostarbeiter)

how many ostarbeiter were there by 1944?

7 million

what changes did the Nazis make to the war effort in 1944?

• all non-essential workers had to work in armaments factories

• all entertainment venues except cinemas shut

• maximum age for women’s compulsory labour was raised

when was the first air raid on Germany?

Berlin 1940

what was formed in 1943?

Volkssturm - home guard

describe air raids in 1943

• on Hamburg

• 30,000 died due to a firestorm

• emergency services collapsed

• emergency homes had to be built

describe air raids in 1945

• on Dresden

• 2 nights killed 150,000 people

• 70% of properties destroyed

• almost as many civilians as soldiers had died by the end of the war

what happened at the end of the European WW2?

April - 1945 - Hitler and Goebbels committed suicide in a Berlin Bunker