Booklet 3 Economy

Autarky

Self sufficiency in the production of food and raw materials

Germany’s position in 1933

1. Demand for German good declined rapidly

2. Widespread rural poverty

3. Mass unemployment at 8 million in 1932

How did Hitler exploit the economy to get votes

Promised to

1. provide workers with bread and work

2. rescue the middle class

3. carry out land reform

Schacht’s New Plan policies

Assistance for farming and small businesses by maintaining tariffs on imported produce

State Investment in Public Works - work creation schemes such as building roads

Evaluation of Schacht’s New Plan

By early 1936 economic recovery was well advanced

Dramatic growth in jobs

Unemployment declined to 1.6 million

Goering’s 4 Year Plan Policies

Aims included:

Expand rearmament and autarky

Regulate imports and exports

Increase agricultural production

Evaluation of Goering’s 4 Year Plan

Success was mixed

Production of key materials expanded e.g aluminium

Production of rubber and oil fell short of targets

Arms production never reached desired levels

Guns vs Butter

Prioritizing military rearmament over civilian goods

Economy and agriculture

1. Concerned with larger farms whos food production was vital for autarky

2. Wanted to avoid high food prices to maintain steady wage rates

3. Reich food estate regulated production, distribution and wages

4. Limited agricultural growth due to priority for military machinery

Economy and Transport

1. Effort went into the autobahn

2. Supreme Reich Authority was a great success in boosting employment

3. Railways were neglected and disorganised with competing demands for use

DAF

German Labour Front:

1. Took over union’s assets and workers were represented under one national body

2. 22 million members in 1939

3. Intended to increase production and win workers over to Nazism

KDF

Strength Through Joy:

1. Created to improve workers leisure opportunities with subsidied activities such as holidays and sports

How did the middle class benefit and lose out

Benefit - Businessmen were able to take business from Jewish rivals

Lost out - Nazis did little to help small businesses

Resented higher taxes

How did farmers benefit and lose out

Benefit - 1933 Reich Entailed Farm Law prevented farms from being sold

Low interest rates given

Lost out - Not allowed to mortgage their farms to raise money for expansion

Demands for rearmament took priority

How did the Industrial Business Community benefit and lose out

Benefit - Benefitted from rearmament boom, growing demand for food and government expansion of the economy

Lost out -