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Nazi Economic Policy
25-point plan
Wehrwirtschaft (war economy)
Job creation plans
“Windfalls”
Foreign debt
25-point plan
(1920) was pro-farmer, pro-small business… but Hitler later reached out to big businesses, middle class
June 1933 law
govt spending on public works
subsidies for private construction
pro-industry tax/loan policy
MEFO bills
fake currency that stimulated industry, infrastructure, housing
Hjalmar Schacht
July 1934: stopped debt repayment
creditor nations received bonds
All debts would be paid in reichmarks (would encourage trade w/GER)
New Plan of September 1934
regulation of imports
increase trade with some countries for some materials/products—which?
“Windfalls”
No more strikes (DAF)
Propaganda
seizure of Jewish, Austrian assets
Nazi preparedness for war
1936: Four Year Plan
Speer’s wartime economy
Totalitarian control
Eliminate political/social opposition and make loyalty to Hitler central
Economic goals
Reduce unemployment, achieve autarky, prepare Germany for war
Social goals
Create a racially defined Volksgemeinschaft
Women/children
Produce and indoctrinate the next generation of Nazis
Education
Control what young Germans learned and believed
The Big Picture
Hitler’s Nazi regime aimed to create a racially unified, economically self-sufficient, militarized, obedient Volksgemeinschaft (“people’s community”) under Hitler’s absolute leadership.
Culture
Eliminate “un-German” influences and promote Nazi values
Minorities
Exclude Jews and other groups from German society
Economic policies: 3 main goals
Reduce unemployment
Prepare Germany for war
Achieve autarky
Reduce unemployment
Public works
Autobahn construction
Reich Labour Service
Military expansion
Conscription
Prepare Germany for war
Wehrwirtschaft = defense/military economy
Four Year Plan = prepare Germany economically for war
Ministry of Armaments and Munitions = organized military production
Conscription = compulsory military service
Autarky = economic self-sufficiency
Acheive Autarky
Germany did NOT become completely economically self-sufficient.
Reich Labour Service (RAD)
Young men were required to participate in labor service.
New Plan — 1934
Hjalmar Schacht.
Managing imports
Increasing exports
Controlling foreign currency
Supporting economic recovery
Four Year Plan — 1936
Hermann Göring
Prepare Germany for war within four years
Increase production
Increase military preparedness
Promote self-sufficiency
Key distinction
Schacht → New Plan → economic recovery/foreign trade
Göring → Four Year Plan → preparation for war/autarky
Cultural policies
control German culture and eliminate ideas he considered incompatible with Nazism.
Nazi culture
Promote Nazi ideology
Glorify Germany
Promote racial ideas
Encourage obedience
Create Volksgemeinschaft
Remove Jewish and other “un-German” influences
Historian Bracher
“no consistent economic or social theory”
guns vs butter
the choice between spending resources on military weapons or on civilian goods and welfare
July 1934
Schacht stopped debt payments
-creditor nations recieved bonds
September 1934
-regulation of imports
-increase trade with some countries for materials
-Austria, Czechoslovakia, Hungary, Argentina and Brazil
Petroleum
Grain
Rubber
Manganese
Copper, nickel, and chrome
Factories produce in 1936
chemicals, synthetic fuels
steelworks using GER ore
Speer
Ministry of Armaments and Munitions in 1942
-transition to long-war economy
-Hitler wanted to avoid this
Central Planning Board
Worked amazing in all ways
Women mobilization
1936: women recruited into factories
1939: compulsory agricultural service
1942: conscription for war service
all of Germany was now the “home”
Nazi youth
1936: compulsory membership in Hitler Youth
Very regimented, competitive
“race science,” and health education and physical training
Ordensburgen
(elite military training)
Asocial
compulsory work
Work-shy
concentration camps, black triangles, possible sterilization
1940: youth concentration camp
“unreformable” were sterilized
“Biological outsiders” - 1933
compulsory sterilization of those with genetic illnesses ▪ 350K sterilized, couldn’t marry fertile partners
1935 Nuremberg Laws
banned marriage between Aryan/Non-Aryan
Euthanasia program
1939-45
-Aug 1941: 72,000 dead
-1941-43: program
-14F13 gassed, 30-50K more in camps