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| Question | Answer |
| --What impact did the Great Depression have on the Weimar Republic-- | --What impact did the Great Depression have on the Weimar Republic-- |
| What big event happened in 1929 and what was the main effect of this? | -Wall Street Crash. -American banks stopped short-term loaning and demanded that all the debts be repaid. |
| What did the so called 'downward economic spiral of the Depression' look like? | Businesses sell fewer goods: • So have to lay off staff • So buy fewer supplies and suppliers have to cut back. Unemployment rises: • So people have less money to spend. Businesses sell fewer goods: • More unemployment • Some suppliers and businesses cannot pay their debts, so go bankrupt. Unemployment rises: • So people have less money to spend. • Some cannot pay the rent/mortgage so lose their homes. More unemployment, more bankruptcies, some banks fail because too many loans not repaid. |
| What were the unemployment figures from 1928-1932? | 1928 - 1,391 thousand (6.3%) 1929 - 1,899 thousand (8.5%) 1930 - 3,076 thousand (14.0%) 1931 - 4,520 thousand (21.9%) 1932 - 5,603 thousand (29.9%) |
| What happened to industrial production 1928-32? | It fell by half. |
| What happened to wages 1928-32? | They fell by 20-30%. |
| What was the state of the government during this period? | -The Grand Coalition couldn't co-operate with each other and failed to cope with the Depression. -President Hindenburg was resistant to more government by emergency decree. |
| What did the new government look like in 1930? | -Chancellor was Brüning. -Suggested cuts in government spending (social welfare), wage cuts and higher taxes. -Government decree resumed in July 1930, and Hindenburg allowed Brüning's policies. |
| How did Brüning change the economic outlook of Germany? | -Brought deflation (keeping prices low by reducing government spending). -Refused to devalue the currency. |
| What was a benefit of this policy? | As Germany's depression deepened, clear to all countries that it would not be able to meet any reparation payments or even repay loans from other countries. |
| What were two suggestions made to sort out the Germany economy? | -December 1931 - trade unionists suggested a plan for job creation to boost the economy. -Devalue the currency (cheaper for other countries to buy the country's goods). |
| How did Brüning respond to these suggestions? | -Introduced a new emergency decree. -Introduced wage cuts, rent cuts and tax rises. -Reparations would not be paid for the next year. |
| What were the effects of Brüning's policies? | -They deepened the depression. -Industrial productions fell, prices fell and exports fell (all by around 50%). -Unemployment rose to its highest level ever in 1932. |
| Who replaced Brüning in late May 1932, what did he introduce and what were the effects? | -von Papen. -Introduced some tax concessions and subsidies for businesses that created new jobs and produced some economic improvement. |
| What further political changes occurred in December 1932, what were the changes and what were the effects? | -Chancellor changed to von Schleicher. -Appointed a Reich Commissioner for employment who drew up a list of public workers to be financed by the government in order to create employment. |
| What were the effects of the new economic policies that the government introduced? | -They were viewed as a failure. -Policies imposed by decree were hard on the German people and also did not seem to be working. -System of government unpopular. -President Hindenburg stayed popular. -Gov's unpopularity = extreme party popularity. |
| --Changing living standards, 1918-32-- | --Changing living standards, 1918-32-- |
| What sort of a country did the Weimar Government introduce? | A country where the standard of living was exceptionally low. |
| How did the government run the analysis of the standard of living? | Based on the cost of a basket of goods for a family of five. |
| What did the Weimar government introduce in relation to living standards? | -Provided benefits for the poorest. -Regulated pensions. -Tried to cope with the large amount of people who had been dependent on those who died in the war. |
| Even though the government introduced an 8-hour working day, what still happened? | As long-term unemployment rose, people started to do badly paid jobs with very long hours, decreasing the quality of life for many Germans. |
| In Berlin, how many people were lodgers and paid to sleep in a bed (1925)? | 130,500 people were lodgers. 44,600 just paid to sleep in a bed. |
| What did skilled workers and low-level clerical workers also experience? | Rising unemployment and many ended up spending all of their savings and having to claim benefit. |
| What happened to the number of clerical workers in the 1920's? | -The industry expanded rapidly. -However, men still lost their jobs as businesses in this sector still preferred to employ women, who were paid significantly less. |
| Which section of society did manage to scrape by? | Small family businesses, especially if they had savings to fall back on. |
| In terms of hyperinflation, who was affected and who wasn't? | -Everyone was affected, even the very rich. -Those who exploited the situation weren't. --Black marketeers. --Industrialists who could afford to buy up small businesses and exploit workers who feared losing their jobs. |
| --Timeline-- Major social legislation, 1918-32 | --Timeline-- Major social legislation, 1918-32 |
| May 1920 | Reich Pension Law regulates pensions, especially those paid to war veterans, war widows and parents of dead soldiers, and is linked not to the rank of the soldiers but to the jobs before they joined up. |
| February 1922 | Labour Exchange Law sets up government offices to provide training and help find work for the unemployed; it puts forward the idea that people have a right to work. |
| February 1924 | Economic Enabling Law restructures unemployment benefit and sets rates for employers' contributions. Reich Social Welfare Law pulls together all of the different post-war benefits and relief systems, federal and regional (e.g. poor relief, maternity care) and sets up municipal welfare offices to administer them. |
| July 1927 | Unemployment Insurance Law introduces unemployment insurance to give benefit to all those out of work, not just those temporarily unemployed due to sickness. |
| --HOW FAR DID THE NAZIS CONTROL THE ECONOMY IN THE YEARS 1933-45?-- | --HOW FAR DID THE NAZIS CONTROL THE ECONOMY IN THE YEARS 1933-45?-- |
| What was the Nazis main goal in terms of the economy when they came to power? | To stabilise the economy and set it on course for recovery. |
| Why didn't the Nazis have an issue with paying reparations to the Allies? | In 1932, Brüning had said Germany could not pay and, at a conference in Lausanne, the Allies agreed that the Depression made reparation payments impossible. |
| What happened in 1934 which impact Germany's stance in the world and why? | -Trade with the USA collapsed. -This happened because Germany, under the economic leadership of Hjalmar Schacht, fell behind on foreign debt repayments. |
| Why didn't this collapse of trade with the USA matter so much to the Nazi regime? | The Nazi regime didn't want to rely on foreign trade, and instead made a push towards autarky. |
| What was the 'New Plan', when did it come into effect and what was its purpose? | -Created by Hjalmar Schacht. -Implemented on 1st January 1933. -It focused on: • Making trade treaties with other countries, such as Hungary and Yugoslavia, which involved exchanging goods rather than paying for imports. • Reduce imports. • Reduce unemployment. • Achieve autarky. |
| Give three reasons as to why the unemployment statistics changed during the Nazi regime. | 1) The Depression had reached its lowest point and turned around. Businesses were employing people again. 2) 'Invisible unemployment' 3) Creation of work by the Nazis. |
| Describe how the unemployment statistics changed in Germany during the years 1933-39. | |
| What was 'invisible unemployment'? | Nazi manipulation of statistics in which they changed the definition of the 'workforce': -Jewish people were no longer allowed to work in the civil service or in other occupations. -Women were discouraged from working and married women, who left work or were sacked, were not included in the workforce statistics. -Mostly young men who were enlisted in the RAD didn't count either. |
| How did the Nazis create work? | They encouraged businesses to make work, especially temporary work for the long-term unemployed. |
| What was the RAD? | -Reichsarbeitdienst (Reich Labour Service). -This was for unemployed men and women and provided manual work, often for less pay than unemployment pay. -Had very basic food and accommodation in labour camps that were either tents or barracks. |
| Give an example of one of the main schemes that the RAD promoted. | -Creation of autobahns. -This created work and improved communications, which helped to move goods and raw materials more efficiently. |
| --Managing agriculture-- | --Managing agriculture-- |
| Who was the Minister of Agriculture? Name some changes he made during his first few weeks in office, which tied in with the aims of the 'New Plan'. | -Alfred Hugenburg. -Increased import tariffs on agricultural produce, making German produce cheaper. -Banned banks repossessing farms from farms in debt, to keep them farming. -Made margarine manufacturers put butter form German farmers in their margarine. |
| Who was the next Minister of Agriculture, after Hugenburg resigned in May 1933, and what did he do? | -Richard Darré. -Set up the Reichsnährstand (Reich Food Estate, or RNS). -This regulated food production and distribution of farm produce, as well as setting prices and farm wages. |
| What was the purpose of the RNS, and what additional powers did it have? | -Main purpose was to make sure that Germany was geared to autarky, making sure that farmers kept farming and were producing the necessary products to keep Germany on track for self-sufficiency. -The RNS could find people up to RM 100,000 for not conforming. |
| What was the effect of, in effect, the nationalisation of farming in Germany by Darré? | -Not everybody welcomed this as farmers didn't like being told what to produce and what to sell their products for. -Had a big effect on the drive for autarky: •68% of all produce in country (1928). •80% of all produce in country (1934). (by farmers) |
| --Managing business and the workers-- | --Managing business and the workers-- |
| Which industries supported the Nazis? | -Iron and steel industries supported the Nazis. -Those depending on exports did not. |
| What did the 1933 Law for the Protection of Retail Trade do and what was the effect of this? | -Stopped the building of new stores and banned the expansion of existing ones. -This meant that some department stores made 80% less in 1934 than in 1929. -Nazi propaganda discouraged using department stores because small businesses had supported Hitler. |
| How did Nazis move to control the unions? | On 6th May, they announced that there was to be only one union: the Deutsche Arbeitsfront (German Labour Front, DAF). |
| What was the issue on workers due to the DAF? | -At first it was 'voluntary' to join the DAF, but as time went on, it became more and more difficult not to be part of it. -The DAF made it possible for big businesses to exploit workers more as they could set their own working conditions. |
| What was the Reich Trustees of Labour and what was the effect on workers? | -They were the final resort in industrial disputes and they usually sided with the employers. -This meant workers didn't really have a voice by the time the Nazis went to war. |
| --The crisis of 1935-36-- | --The crisis of 1935-36-- |
| How did Schacht's plan get on? | -Initially, by trading with south east Europe in raw goods, trade improved. -By 1935, countries were demanding cash and not goods, for their goods. |
| What was the effect of the failing plan on Germany? | -Germany began to get a lack of certain materials, as it still wasn't self-sufficient. --This meant it still required raw materials for rearming and work creation. |
| What crisis did Schacht face in 1935? | -He had to choose between food and raw-material imports. -Increasing exports went against Nazi policy. -The alternative was to cut consumption, without introducing unpopular rationing, and press for higher production. |
| --Timeline-- Nazi Economic Legislation, 1933-36 | --Timeline-- Nazi Economic Legislation, 1933-36 |
| 6th May 1933 | DAF, Nazi trade union, is set up, all other unions banned. Workers reorganise on 7th December along Nazi Party lines. |
| 12th May 1933 | Law for Protection of Retail Trade bans new department stores and the expansion of existing ones. |
| 19th May 1933 | Reich Trustees of Labour set up, 12 for the whole country, to regulate working conditions under the Minister of Labour. |
| 1st June 1933 | Law to Reduce Unemployment, the first 'Reinhardt Programme' to provide employment is drawn up by Fritz Reinhardt, in the Ministry of Finance. This become the RAD. This gives women a marriage loans if they leave work when they marry. Debt Regulation Law restructures agricultural debt to reduce or write them off. |
| 22nd June 1933 | Law to build autobahns expands a pre-Nazi work creation scheme of road building. |
| 13th September 1933 | Reichsnährstand (Reich Food Estate, RNS) is set up. |
| 21st September 1933 | Second 'Reinhardt Programme' to provide employment gives businesses tax concession for providing work projects, as well as government loans for them. Reich Entailed Farm Law sets up about 700,000 farms of at least 7.5 hectares to be given to German farmers to be farmed by them and their families and passed down to the eldest son. |
| 24th October 1933 | DAF is given responsibilities for 'Strength through Joy' and 'Beauty through Labour', to persuade employers to provide good working conditions. |
| 29th November 1933 | Law for Construction of German Craft Trades says skilled workers have to be properly trained and members of a Nazi-run trade guild. |
| 16th March 1935 | Conscription to the military and rearmament is announced. |
| 26th June 1935 | The RAD is made compulsory for young people between the ages of 19 and 25, who then have to work on an RAD project, usually living in state labour camps. |
| --Creating a command economy, 1936-39-- | --Creating a command economy, 1936-39-- |
| What is a command economy? | One where the state, not business or agriculture, decides what and how much to produce. |
| Who was in charge of the second-Four Year Plan, after the first 'New Plan' failed, after having only ran for 3 years? | Hermann Goering. |
| What were the six departments in Goering's Office of the Four-Year Plan? | -Raw material production -Agricultural production -Distribution. -Labour -Prices -Foreign exchange matters. |
| What was Goering's idea to drive Germany's autarky goals even further? | Goering wanted to replace the raw materials that Germany could not produce (such as rubber), with synthetic alternatives (Buna). |
| How did Goering achieve this and what was the effect of it? | -He created new factories. -Results were not as rapid because the processes for alternatives were very extensive and technical. -It took six tonnes of coal, to produce 1 tonne of synthetic fuel (which was prioritised). |
| --Guns or butter?-- | --Guns or butter?-- |
| What was the major issue with the Nazi policies of rearmament and 'Work and Bread'? | They were very hard to balance, since if Hitler wanted to continue getting imports for his new army, he would have to cut down on food imports. Very difficult as by doing so, Nazis would have to introduce rationing which would make the state very unpopular. |
| How did the Nazis try to get around this? | -Office of the Four Year Plan had centralised control for everything to balance people's needs. -Nazis tried to 're-educate' the public to consume less (meat and fat) with propaganda to change their eating habits in order to be patriotic. |
| --The situation in 1939-- | --The situation in 1939-- |
| How much control did the Nazis have over the economy by 1939? | Had tight control due to the fact that it was a command economy, therefore they controlled what and how much was produced. |
| Was Germany self-sufficient? How did Germany continue to try to make the move towards autarky? | No. Germany was still importing 17% of agricultural needs; improvement from 20% in 1934 but not enough. Propaganda wanted people to swap sausage for jam to have with their bread. |
| What was the big issue with the Nazis having a command economy? | -Groups, such as big industrialists and manufacturers of consumer goods, stopped supporting the Nazi regime. -This was because of the levels of control the Nazis wanted over agriculture and industry. |
| How ready were Germany for war by 1939? | -Rearmament had been significant. -Germany still wasn't self-sufficient agriculturally. -Didn't have public protest over not having factories producing luxuries such as toys or electric goods. |
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