Schacht's and Goerings role in economic policy

What positions did Schacht hold?

President of the reichsbank (1920-30), Reich minister of economics (1934-37), General plenipotentiary for the war economy (1935-37)

What did the economy need after the low point 1932-33 of the depression?

Needed revival of public investment through large scale spending to stimulate demand and raise national income

What is deficit financing?

raise and spend money to offer employment

Which areas did Schacht focus on to improve the economy?

• Banking and control of capital

• assistance for farming and small businesses

  • state investment through public works

How did Schacht help the banking system?

The state reduced interest rates, controlled wages and prices and rescheduled debts of local authorities

How did Schacht help farmers and small businesses?

Maintained tariffs to protect farmers, Reich entailed farm law reduced debts through tax concessions and lower interest rates

How did Schacht help with state investment?

In June 1933 the Law to Reduce unemployment was renewed and extended to 19-25 yr olds which involved rearmament, construction, transportation

Evidence of the success of state investment:

government spending increased by 70%