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Living standards: winners and losers Rearmament and gearing the economy for war.

Living standards: winners and losers Rearmament and gearing the economy for war. . Connector. “ Before : Unemployment, hopelessness, desolation, strikes, lockouts. Today : Work, joy, discipline, comaradarie. Give the Führer your vote!”.

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Living standards: winners and losers Rearmament and gearing the economy for war.

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  1. Living standards: winners and losers Rearmament and gearing the economy for war.

  2. Connector “Before: Unemployment, hopelessness, desolation, strikes, lockouts. Today: Work, joy, discipline, comaradarie. Give the Führer your vote!” “Guns will make us strong, butter will only make us fat.We have no butter... but I ask you, would you rather have butter or guns? Preparedness makes us powerful. Butter merely makes us fat” Herman Goring

  3. Big Picture • Hitler came to power on the back on an economic crisis • By 1939 he had managed to change the economic outlook of Germany

  4. outcomes • All to know the 4 main features of economic policy through peer teaching • Most to research at least one aspect of the economic recovery • Some to do this with support

  5. Four main themes • Economic recovery 1933-36- NK HD • Four Year Plan 1936-1939- BA • Role of big business- RS YK • Did Germany have a war economy in peacetime? AV HJ • Until 1.45- produce at least one slide

  6. Balance of payments • Two fears • Rapid increase in demand would rekindle inflation • Rapid increase in demand would lead to the emergence of trade deficit • Inflation-under control due to lack of demand and control of prices and wages • There was however a massive problem due to balance of payments as Germany was importing more than it exported

  7. Economic recovery 1933-36 • Economic policy was under the control of Hjalmar Schacht, President of the Reichsbank, showing the Nazis working with big business • The state controlled capital- lower interest rates, control of capital • Assistance for farming and small business- tariffs, subsidies, Reich Food Estate, allowances, grants, • State investments in public works-RAD (reich labour services), Law to Reduce Unemployment autobahns, rearmament, construction, reforestation, motorisation, building housing

  8. In groups/pairs • Economic recovery 1933-36 • Four Year Plan 1936-1939 • Role of big business • Did Germany have a war economy in peacetime? • You have 30 mins to research on area, create a slide/ two slides, then present to the rest of the group

  9. Presentations • Add to your notes.

  10. Review Essay Questiom • “The handling of the economy was poorly co-ordinated and this accounts for the weaknesses in German war production in the years 1939-45” • How far do you agree with this view?

  11. Schachts New Plan • In 1934 he was dictatorial powers over the economy which he then used to introduce the New Plan of September 1934. • The government now decided what was going to be imported eg cotton was reduced but heavy metals increased • Also • Bilateral trade agreements • Reichsmark currency set up • Mefo bills- like credit notes used by the government to gaurantee payment for goods, held for 5 years and earning 4% interest, which successfully disguised government spending.

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