The Nazi Economy (Jobs and Money)

The Nazi Economy (Jobs and Money)

1. Economic Strategies

   • Schacht and the New Plan
     • Minister for the Economy 1933-1937
       • He was fired for speaking out against Hitler's plan to rearm Germany quickly
     • Success? Yes: Increased production by 50% Germany had a small trade surplus by 1935 NO: They still needed to trade with other countries
     • Wants to: Reduce unemployment
     • Wants to: Make Germany Self-sufficient
       • This is called AUTARKY
       • Want to be sure they can't be defeated in war
   • Goring and the Four Year Plan
     • Minister for the Economy 1936-1940
     • Aim: to Prepare Germany for war
       • Build up the Army
       • Wanted to be self sufficient in Rubber, Oil and Steel
         • Still rely on imports - tried to make coffee from acorns - it doesn't taste nice!
         • By 1939 they realised that it wasn't working - Invaded Poland to try and gain more resources
       • Develops a huge engineering works (The Hermann Goring Works)
         • Mining and Metal works
       • The focus on building weapons meant they didn't produce enough food
         • Led to food rationing e.g. Butter

2. Dealing with unemployment

   • When Hitler came to power in 1933 Unemployment was 6million. If Hitler was to maintain his popularity he was going to have to do something about this
   • Job Creation Schemes
     • Huge programme of 'public works'
       • Built motorways (autobahns)
         • created jobs
         • Improved transport of goods - makes trade easier
       • 1936 Berlin Olympics
     • Subsidised private businesses
       • Volkswagen (People's Car)
       • Especially construction
   • National Labour Services (RAD)
     • Unmarried men between 18 and 25 forced to work
       • Jobs were mostly manual labour (working with your hands)
         • People didn't like it - not paid much - rubbish jobs - Only 10 days holiday a year
         • Building costal walls, draining marshes, building autobahns, tree planting
     • made a huge difference to the unemployment figures, also convinced people to marry
   • Rearmament
     • Created lots of jobs in munitions factories
       • Built tanks, ships, aircraft - spent billions
     • Coal, chemical production doubled, iron and steel production trebled
     • increased the army by 800,000 men
   • Invisible unemployment - How did the Nazi's cheat?
     • Women
       • Sacked from jobs - tempted by marriage loans to stay at home
     • Jews
       • Forced out of jobs especially doctors, lawyers etc.
     • Opponents
       • Sent to Concentration camps
     • Unmarried men
       • Had to join the National Labour Service

3. The Labour Front (DAF)

   • Replaced trade unions
     • Instead of just protecting the workers - it had representatives of employers and workers
   • Strength through Joy (KdF)
     • A way of keeping the workers happy - if they worked well they got rewards e.g tickets for the theatre even cruises
       • But... The best rewards were only ever given to leading Nazis
     • The Volkswagen Scheme
       • Volkswagen was produced to increase car ownership
         • They were cheap, workers could pay 5 Marks per week to pay off the car
           • However no one actually got a car using this scheme - the money went on the war effort
   • The Beauty of Labour (SdA)
     • Designed to keep people happy in their jobs
       • reduced noise of machines
       • Built canteens, swimming pools etc.
         • All improvements had to be made by the workers and done in their own free time