The Nazi Economy

Flashcards about Nazi economy

What were Hitler's economic aims?

Reduce unemployment, tackle the economic depression, provide means for militarization, achieve autarky, and protect the interests of the Mittlestand.

Who was in control of Nazi economic policy in the early years?

Hjalmar Schacht, president of the Reichsbank and minister of economics.

What economic policy did Schacht adopt to meet Germany's economic needs?

Deficit financing.

What were some of the economic measures taken under Schacht's guidance?

Banking and control of capital, deficit financing, controls on wages and prices, and assistance for farming and small businesses.

What was the 'Law to Reduce Unemployment' of June 1933?

A job creation scheme involving government loans and grants for building and renovation projects.

What was the 'Battle for Work'?

Increased public expenditure and investment to create jobs.

What benefits did the Reich Entailed Farm Law offer?

Security of land ownership by the reduction of debts and tax concessions.

How did the Nazis protect German farmers?

By maintaining tariffs on imported produce and providing subsidies through the Reich Food Estate.

What was the Reich Labour Service (RAD)?

Compulsory labour service for males between the ages of 19 and 25, mostly employed in public works.

What was the 'Law for the Protection of Retail Trade'?

A law aimed to protect small shopkeepers by forbidding the extension of department stores.

How did conscription affect unemployment figures?

Removed all males 18-25 from unemployment statistics.

How did the balance of trade problem arise for Germany?

Germany was importing more than it was exporting.

What was Schacht's 'New Plan' designed to address?

The balance of trade deficit.

What did Schacht's 'New Plan' entail?

Government control over imports through allocation of foreign exchange.

What are 'Mefo bills'?

Bills issued by the government as payment for goods, held by investors or banks and exchangeable for cash.

By mid-1936, by how much had industrial production increased since 1933?

60%

By mid-1936, by how much had the GNP grown since 1933?

40%

What factors contributed to Hitler's success in tackling the depression?

More determination than Weimar governments, tackling unemployment as a top priority, greater state intervention, and the Enabling Act.

What was the primary long-term objective of Hitler's economic policy?

To create an economy that could support sustainable rearmament.

Who replaced Schacht and what organization was he put in charge of?

Goering; the Office of the Four-Year Plan.

What was the debate summed up by the question 'guns or butter' about?

Whether the economy should concentrate on rearmament or consumer goods.

What was the primary goal of the Four-Year Plan?

Autarky (economically self-sufficient) and prioritizing rearmament to be ready for war.

What did Goering control under the Four-Year Plan?

Foreign exchange, labor, raw materials, and prices.

What were 'ersatz goods'?

Substitute or artificial goods, e.g., oil from coal and synthetic rubber.

What was the result of the policy of Autarky by 1939?

Germany was still dependent on imports for 1/3 of raw materials.

What was the Nazi solution to the problem that Germany could not afford imports?

To cut imports and embark on a policy of greater self-sufficiency.

By 1938, what was the German balance of trade deficit?

432 million Reichsmarks.

Why, according to Mason, did the regime resort to a war of plunder?

The regime felt insufficiently secure to demand sacrifices from the population, and war was seen as a way to gain resources.

What did Overy argue led Hitler to declare war?

A developing economic crisis, shortages of raw materials and labor, and growing food shortages.

What was the decree issued by Hitler in September 1939?

For the conversion of the whole German economy onto a war footing.

In what areas did rationing begin in 1939?

Certain consumer items.

By the summer of 1941, what percentage of the workforce was involved in war-related projects?

55%

Name the four governmental ministries which competed with each other.

Ministry of Armaments, Economics, Finance, Labor.

What weakened the economic mobilisation for Total War?

Political infighting, Gauleiters trying to control local areas, groups responsible for armaments, etc.

What did Hitler issue to Todt in December 1941?

A 'Rationalisation Decree' to eliminate the waste of labour and materials.

Who replaced Todt as minister of armaments in February 1942?

Albert Speer.

What was Speer's programme intended to provide?

Mass production through 'industrial self-responsibility'.

What did the Central Planning Board coordinate?

The allocation of labour, equipment, and materials to armaments factories.

How did Speer increase production?

Concentrating production in fewer factories and employing more women.

What was the role of Fritz Sauckel?

Coordinated millions of forced labour workers.

As a result of Speer's first six months in charge, by how much did ammunition production increase?

97%

By the second half of 1944, how much had total arms production increased since early 1942?

More than a three-fold increase.

What was the impact of allied bombing?

Industrial destruction and breakdown in communications.

When did German arms production peak?

August 1944.

By 1944, what percentage of the work force was made up of foreign workers?

Nearly 25 percent.

Which territories did Germany plunder?

Territories occupied by Nazis were plundered but were not exploited with real efficiency.

Who was against the economic policies put in place?

Schacht, business community, etc.

Did Speer manage to meet target goals?

No, he was unable to reverse the detrimental effects of Anglo-American bombing.

What did officials show anxiety about?

Their own ability to carry out the tasks assigned to them by the rearmament drive.

What were some factors that contributed to the Nazi economy failing?

Lack of vital resources, bombing, etc.