Transcript Did Hitler achieve an economic miracle?

Did Hitler achieve an
economic miracle?
Unemployment in Germany/Total
January 1933
6 million
January 1934
3.3 million
January 1935
2.9 million
January 1936
2.5 million
January 1937
1.8 million
January 1938
1.0 million
January 1939
302,000
Is this evidence for
an economic
miracle?
“History will judge us according to
whether we have succeeded in
providing work.”
Hitler
Aims:
Understand Nazi economic policies
Make historical judgement regarding
success of policies
Situation in 1933
Unemployment
Autarky
National Labour Service
(Reichsarbeitsdienst or RAD)
German Labour Front / Robert Ley
Strength through Joy (Kraft durch Freude
/KdF)
Hjalmar Schacht
Conclusion: was there an economic miracle?
Situation in 1933
Recap: discuss in pairs for 2
minutes what the situation was in
1933 (you’ve already covered it!)
Situation in 1933: crisis
Unemployment peaked at 6 million
during the final days of the Weimar
Republic – near enough 50% of the
nation’s working population
Government unable to resolve problems
Great Depression sparked by Wall
Street Crash
Hitler had promised to get German’s
working again - propaganda played on
fear of no hope
This was his economic priority:drive for
full employment: aim of first 4 year
plan (1932-6)
Economic policy?
Before coming into power rhetoric had
been socialist e.g. control of big
business
This did not survive into practice
Economic discussion in party forbidden
“Let them own land or factories as
much as they please” state is supreme
over owners and workers - Hitler
So economics was subordinate to
politics
Unemployment in Germany/Total
January 1933
6 million
January 1934
3.3 million
January 1935
2.9 million
January 1936
2.5 million
January 1937
1.8 million
January 1938
1.0 million
January 1939
302,000
Reminder of figures
Methods used to decrease
unemployment
Aim of first 4 year plan (1932-6)
Public works schemes (started by
Von Papen and Bruning) extended:
Arbeitdienst - afforestation &
water conservation schemes
Also building barracks &
motorways (Autobahnen) 7000km
Regulations: labour not machines
Unemployment did decrease
 But: how much of this was propaganda?
 Women no longer included in the statistics so any women
who remained out of work under the Nazi’s rule did not exist
as far as the statistics were concerned.
 The unemployed were given a very simple choice: do
whatever work is given to you by the government or be
classed as "work-shy" and put in a concentration camp.
 Jews lost their citizenship in 1935 and as a result were not
included in unemployment figures even though many lost
their employment at the start of Hitler’s time in power.
 Many young men were taken off of the unemployment figure
when conscription was brought in (1935) and men had to do
their time in the army etc. By 1939, the army was 1.4 million
strong. To equip these men with weapons etc., factories were
built and this took even more off of the unemployment
figure.
Autarky (self-sufficiency)
Think: what were the possible
aims for autarky? Why was it
needed?
Autarky (self-sufficiency)
Second aim of 4 year plan
Goering in overall charge / Hjalmar
Schacht - Reichsbank president also
influential (later Minister of Economics)
Independent of world economic trends
Necessary because of boycotts &
possible war
Bilateral agreements with Balkan
countries
Less successful than hoped: by 1939 oil
production 40% of what hoped & 30%
raw materials imported
Schacht and Big Business
Larger enterprises supported - needed
for rearmament and self sufficiency
Paid off foreign debts in Reichmarks
Trade agreements
Financial orthodoxy - reluctant to spend
more than income nearly stopped
rearmament
Showpiece successes
Hermann Goering Steel Works at Salzgitter
The Peasants
Protected from rising industrial prices
and falling income from goods
Debts suspended for Mar-Oct 1933
Imported goods = higher tarriffs
Only Aryan farmers
Law went against larger farming units &
modern methods - didn’t help search
for autarky
National Labour Service
(Reichsarbeitsdienst or RAD)
Public works
Wore a military style uniform, lived in
camps near to where they were working
and received only what we would term
pocket money
Compared to the lack of success of the
Weimar government and the chronic
misery of 1931 to 1932, felt at least the
Nazi government was making the effort
to improve their lot
German Labour Front
Set up by Robert Ley
Equivalent of banned trades unions
Workers could not be sacked on the
spot - had to have government
permission to leave jobs
Government labour exchanges
organised jobs
Hours 60 to 72 per week
Strikes banned
Kraft durch Freude (KdF)
Strength Through Joy
Organised workers’
leisure time
Subsidised activities
and holidays
Volkswagens - hire
purchase
Conclusion
Production had increased
Unemployment had decreased
Workers lost freedoms
Wages never rose above 1930-2 levels
Were they better off? KdF
Economy ‘chaotic’: low foreign currency
reserves; deficit
Confiscation of Jewish property &
Austrian assets after Anschluss
Still impressive results
FOR STATS SEE PAGE 316
Interpretations
 Marxists: Nazi regime front for capitalist aims
(Trade unions / big business)
 Cf. T. W. Mason - ‘primacy of politics’ (cooperation until 1936)
 How far did economic recovery depend on war
preparation?
 Some debate over this: Klein (didn’t want
tough measure to alienate) denied success
related to war preparation - strong economic
activity
 vs Milward (more prepared for war)
 Both interpretations subsequently challenged
 Karl Bracher: ‘ruination’ of economy through
exploitation - aiming for rearmament
The Bigger Picture
German (and other countries) already
beginning to recover by 1933
Recovery depended on heavy state
control
Unsound basis: no overseas investment
so many loans (often forced) = heavy
deficit
Not geared up for total war from the
start
Once Nazis put on total war economy in
1943 increases remarkable but too late
An economic miracle?
In pairs draw up a list of factors
pro and con the existence of an
economic miracle