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NAZI GERMANY

NAZI GERMANY

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NAZI GERMANY

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  1. NAZI GERMANY ECONOMIC POLICIES

  2. Recovery stage: (Hjalmar Schacht) - government spending on public works projects, subsidies to private firms, rearmament orders - this led to balance of payments deficit as economic recovery led to rising demand for consumer goods - rearmament led to increased demand for raw materials - danger of inflation with increased demand and increased money supply

  3. Recovery Stage To deal with inflation and balance of trade deficit, the 1934 New Plan introduced controls on currency, wages, and prices. Problems: disagreements over exports – Schacht favoured boosting exports and slower rearmament; Goering and Hitler favoured faster rearmament

  4. Hermann Goering

  5. Rearmament (Hermann Goering) • Four Year Plan (1936) • Prepare for war • Autarky to be achieved by expanding domestic production, developing substitutes, expanding territory (Austria, Czechoslovakia) • Expanded rearmament program Problems: danger of economy overheating: labour and raw materials shortages, some prices rising

  6. War (Albert Speer) • 1939-41: Blitzkrieg successful; foreign countries plundered for their resources • 1942-5: total war economy; huge increase in production

  7. Hitler's war economy seen in full swing as Junkers Ju-88 high-speed medium bombers are mass-assembled - each capable of carrying about 3,000 pounds (1500 kgs) of bombs.

  8. Why a Four Year Plan?

  9. John Heartfield “Hooray, the butter is gone!” Mocking Goering’s 1935 speech : “Ore has always made an empire strong, butter and lard have only served to make its people fat”

  10. DID THE GERMAN WORKER BENEFIT? (pg. 327) • HUGE reduction in unemployment with public works projects and the Reich Labour Service • “Strength through joy” trips (extended vacation time…) • Morale increased • VW (car culture) • No wage increases (With inflation, buying power actually went down) • Basic food prices increased by 50% • Cartels and monopolies • Lack of trade unions –Longer work week • Propagandistic messaging… YES NO

  11. DID THE NAZIS BRING ABOUT AN ECONOMIC REVOLUTION? (Pg. 310) OPTION C… • Stimulated the economy (Steel, iron etc.) • Rearmament • Suppression of trade unions • (initially) sought trade relations • Reduce unemployment (Autobahn- public works projects) • New laws (hereditary farm act etc.) • Inflation (price of food up 50%) • Rise in cartels (new laws ineffective) • Suppression of trade unions – had been done before • Economy was ‘chaotic’ NO YES

  12. HISTORICAL OPINION pg. 310 • B.H. Klein • Marxist Historians • Eicholtz • Mason • Karl Bracher

  13. HOMEWORK PGS. 311-314 #1&2 (314)