Hitler`s Economic Policy How Hitler Transformed the German Economy

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Transcript Hitler`s Economic Policy How Hitler Transformed the German Economy

Hitler's Economic
How Hitler Transformed the German
By Mr Robinson
Blessed trinity RC College
At the end of this lesson you should be able to:
Understand Hitler’s priorities on coming to power
Evaluate the Schacht period of economic
management 1933-5
Understand the importance of Goering and the 4
year Plan 1936-40
Evaluate the success or otherwise of Nazi economic
During the election campaigns Hitler had promised to
solve unemployment. This was only one of his aims
Hitler’s economic priorities
1. Drag Germany out of the world recession
2. Solve unemployment (which he had promised to
3. Make Germany an “autarchy” – self sufficient
4. Get rid of Jewish industrialists and give their
businesses to “Aryans”
4 Transform the economy to focus on rearmament
and war
Hjalmar Schacht
Schacht was President of the Reichsbank who directed
German economic policy
He believed in steady growth and a stable currency
He promoted trade agreements with developing
countries trading manufactured goods for cheap raw
He was against spending out too much on rearmament
before the German economy was strong enough
His New Plan of 1934 aimed to reduce imports into
Germany and to strengthen the currency
He fell out with Hitler over the speed of rearmament and
was replaced by Hermann Goering in 1936
Hitler’s Ideas
German economy can be converted into a war machine
Germany must rearm quickly, conquer countries by
Blitzkrieg or lightening war, takeover their economies
and move on
Conquered countries would give the master race
By exploiting conquered countries living standards could
be maintained at home despite all the money being
spent on war
In 1936 Goering was appointed to introduce a 4 year
plan to put Hitler’s ideas into action
The aims of the 4 year Plan
Speed up rearmament and make Germany ready for
Make Germany self sufficient in raw materials
“autarchy” by developing home grown substitutes.
In 1933 total money spent on
the military was 1.9 million
marks by 1939 it was 32.3
What were the results of this?
The size of the German army grew massively
Hitler became more confident and started to openly
break the Treaty of Versailles
Poland 1939
World war broke out!
Was the 4 year Plan a
Unemployment dropped quickly 4.8 million in 1933 to 0.5
million in 1938
Wages rose slightly but were still lower in 1938 than they
had been in 1928
Working hours went up to 49 hours per week in 1939 –
52 hours in 1943 to over 60 hours per week by 1945
There were fewer consumer goods (personal and
household goods
Trade unions were replaced by “Beauty of Labour” and
strength Through Joy” who organised better conditions
and leisure activities
Were people better off under
the Nazis?
Unemployment fell everywhere not just in Germany
Some people were forced to work on public works
There were disadvantages to SDA and KDF – workers
had no representation
Workers put more into the economy than they got out
If you were “Aryan” and of no strong political beliefs life
was relatively good