What were the economic policies of the Nazi Party? Were these policies successful? NAZI ECONOMIC POLICY

 When the Nazis gained power in 1933 the biggest problem they faced was the economy.  Germany had suffered severely as a result of the Great Depression.  = main priority was to overcome the economic problems.  Some historians argue that when the Nazis came to power in 1933 the economic situation was actually already improving, others argue that the German economy was improved as a direct result of Nazi policies. WHY WERE THE NAZIS ABLE TO STAY IN POWER, ?

I was unemployed for many years. I’d have made a pact with the devil to get work. Hitler came along and got me work, so I followed him. A German worker explained in 1985 why he joined the Nazis in the 1930s

HITLER’S PROMISE Work Bread Freedom

 When Hitler was appointed Chancellor nearly 6 million Germans were unemployed.  By 1935 there were only two million.  By 1939 there was a shortage of labour! This transformation helps to explain not only why Hitler was able to consolidate his position in power, but also why he became so popular.

 Reduce unemployment.  Top priority = expand the military might of Germany + prepare the country for war. NAZI AIMS

KEY FEATURES OF THE NAZI ECONOMY RECOVERY: Tackle the depression and restore Germany to full employment Improve conditions for millions of Germans + enable more resources to be utilised to rebuild Germany’s military might Hitler viewed WAR AS INEVITABLE = German economy must become as self-sufficient as possible Economy to expand vital war materials, develop substitutes for imports + train workforce for skills useful in war MAKE GERMANY READY FOR WAR

 When he came to power Hitler’s plan was to make Germany entirely self- sufficient.  The plan was to make Germany ready for war within four years.  Priority was to be given to re- armament.  Germany was to be as self-sufficient as possible in food and industrial production = autarky. REARMAMENT: FOUR YEAR PLAN

 Autarky means economic self-sufficiency, that is a country providing all its economic needs within itself, and thus not being dependent upon imports.  = crucial for a country geared for war to avoid the damage inflicted by an economic blockade.  Success?  By 1939 Germany still depended on foreign imports for 1/3 of its raw materials (iron ore, oil and rubber). AUTARKY

 Conscription introduced in  All men between had to spend two years in the army.  New warships, tanks and guns were made creating jobs.  Cut 1 million off the unemployment figures and trained Germans to be ready for war. REARMAMENT

 Set up in May  Set up for workers after trade unions were banned.  It was headed by Robert Ley.  Was the largest organisation in the Third Reich.  Membership increased rapidly (was hard not to join): from 5 million in 1933 to 22 million in  DAF provided a range of facilities + was intended to restore social peace, win workers over to Nazism and increase production. DEUTSCHE ARBEITSFRONT (DAF): THE GERMAN LABOUR FRONT

 The Labour Front gave an extra day’s holiday to its members.  Protected members from being sacked on the spot.  However, workers had no opportunity to campaign for higher wages or better working conditions.  A worker could not leave a job without the government’s permission.  The Labour Front issued work books to all employees. Without which a person could not be employed. The book contained a record of each worker’s behaviour, timekeeping and absence rate. DAF

The German Labour Front is the organisation for all working people without reference to their economic and social position. Within it workers will stand side by side with employers, no longer separated into groups and associations which serve to maintain special economic or social distinctions or interests… The high aim of the Labour Front is to educate all Germans who are at work to support the National Socialist State and to indoctrinate them in the National Socialist mentality.

 Created in November 1933 to improve workers’ leisure opportunities.  Idea? If workers were happy and contented they would work harder.  KdF provided subsidised activities such as holidays, hikes, sport, theatre and cinema visits.  Described by Ley as ‘the quickest means of bringing National Socialism to the workers’.  In 1938 over 10 million took KdF holidays, most within Germany. KRAFT DURCH FREUDE (KDF): ‘STRENGTH THROUGH JOY’

KdF members were offered cheap holidays. Two cruise ships were built to take them to places like Madeira and the Canary Islands. In 1938, over 180,000 people went on these cruises. “I wish that the worker be granted a sufficient holiday and that everything is done, in order to let this holiday as well all other leisure time to be truly recreational. I wish this, because I want a determined people with strong nerves, for truly great politics can only be achieved with a people that keeps its nerves.”

 For those who could not get a place on a cruise ship, there were walking holidays in the mountains for 28 marks a week, or, in winter, skiing holidays in Bavaria.  The price included travel, board and lodging, ski hire and skiing lessons from an instructor.  Holidays in Switzerland were offered for 65 marks and tours of Italy for 115 marks.  The KDF offered affordable but enjoyable holidays = increase support the Nazi regime. KDF

 1934: 2.3m went on KDF holidays  1938: 10m went on KDF holidays  1939: 7,000 paid employees 135,000 voluntary workers Had wardens in every factory KDF

Announcement of a "Kraft durch Freude" ("Strength through Joy") variety show, year unknown

 In 1938 DAF organised the Volkswagen (People’s Car) scheme.  Workers were given the opportunity to pay 5 marks a week into a fund which would eventually enable them to buy a car.  Aim of scheme = reduce the danger of inflation by boosting savings and cutting domestic expenditure.  No worker actually received a car.  In 1939 production was switched to military needs. VOLKSWAGEN

"Five marks a week must you put aside — If in your own car you want to ride!"

 DAF is important as a good example of Nazi control of all key areas = work + leisure.  Independent workers’ organisations were replaced by Nazi controlled ones. NAZI CONTROL OF EVERYTHING

 RAD developed from a voluntary scheme under the Weimar Republic.  In 1935 a law made six months’ labour service compulsory for all men aged between 19 and 25.  In 1939 it was extended to women.  RAD was intended to ‘educate German youth in the spirit of National Socialism, to membership of the national community and to acquire a true conception of work, above all respect for manual labour.’ REICHSARBEITSDIENST (RAD): REICH LABOUR SERVICE

 Most members were employed in agriculture or public works.  It may have meant living in barracks away from home, with low pay. RAD built schools, hospitals, motorways. Men were paid in pocket money and food. Workers lived in camps rent free. RAD

Hitler begins work on a new motorway Tourist poster advertising the new motorway system In ,000 miles of new motorway were under construction

How did the Nazis stimulate economic recovery ? Government took action to create jobs. Government increased public spending and investment Hitler extended public works schemes, especially the building of homes and motorways Such works, paid for by the government, provided orders for many private companies who took on more workers Growth in jobs in government

How did the Nazis stimulate economic recovery ? Some groups pressurised out of employment e.g. some married women + Jews Agricultural workers no longer eligible for unemployment relief = taken off the figures The Youth Service (RAD) took the young off the unemployment register (400,000 in 1934) From 1935 conscription removed all year olds males off the register (required to do two years military service) Armed forces grew from 100,000 in 1933 to 1,400,00 in 1939 Brϋning negotiated the ending of reparations payments

DID THESE STRATEGIES MAKE A DIFFERENCE?  Unemployment went down to around 2.1million by mid by July 1939 it was as low as 0.038m.  Government expenditure increased by 70% between 1933 and  Is there a problem here?

There is some debate about this – the evidence is mixed. 1. Unemployment. Definitely better - +6 million out of work in 1932 only 38,000 in July 1939 Workers at the new Volkswagen car plant DID GERMANS’ STANDARD OF LIVING IMPROVE BETWEEN ?

2. Wages. Money wages definitely rise a bit – if the year 1913 is base 100, then 1933 = = 141 But.. Real wages (i.e. once we take account of inflation) did not do well 1933 = = 112

3. Consumption – food. Increase in consumption of RYE BREAD (20%) CHEESE (11%) Decrease in consumption of BEER (59%) EGGS (41%) MEAT (18%) What does this suggest about the German economy in the 1930s?

4. OTHER GOODS…..  Radios – 70% of German households have radios by  Cars – New Volkswagen private car promised. Designed by Porsche and in production by “All Germany hears the Fϋhrer”