Hitlers Economic Policy
Economic Policies During Hitler's Autocratic Rule
Autarky (Economic Self-Sufficiency)
Goal: To make Germany economically independent and self-sufficient, reducing reliance on foreign imports.
Implementation: Implemented through import restrictions, promotion of domestic production, and development of synthetic materials.
Rearmament and Military Spending
Massive Investment: Huge public spending on rearmament and military expansion to prepare for war.
Job Creation: Reduced unemployment through military buildup and related industries.
Public Works Programs
Infrastructure Projects: Large-scale public works projects such as building the Autobahn (highway system) and constructing public buildings.
Employment: These projects aimed to stimulate the economy and reduce unemployment.
Trade Policies
Bilateral Trade Agreements: Establishment of bilateral trade agreements with other countries, particularly in Eastern Europe and South America, to secure resources and markets.
Exploitation: These agreements often favored Germany, exploiting the economic dependencies of smaller nations.
Control of Labor and Industry
Suppression of Labor Unions: Dissolution of independent labor unions and establishment of the German Labour Front (Deutsche Arbeitsfront) to control the workforce.
Regulation: Strict regulation of industry to align production with the regime's goals.
Financing Methods
Mefo Bills: Use of Mefo bills (promissory notes) to finance rearmament without immediately increasing public debt or inflation. These bills were essentially a form of shadow currency.
Confiscation: Confiscation of assets from Jewish people and other persecuted groups to fund the regime.
Impact and Consequences
Economic Recovery: Initial success in reducing unemployment and stimulating industrial production.
Unsustainable Policies: Long-term, the policies were unsustainable due to the massive debt and resource depletion, which partly motivated expansionist policies and ultimately led to World War II.