1) Economy brought under state control

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Presentation transcript:

1) Economy brought under state control 1933-39 Nazi Economic Policy 1) Economy brought under state control 1933-39

a) Nazi promises and the fulfilment * The needs of small farmers and smaller urban traders ( middle-class) to be understood→ In 1933 All peasant debts were suspended High tariffs on foreign food Establishment of the Reich Food Estate Introduction of the Reich Entailed Farm Law ( gave security for the Aryan farmers/ 7.5.-10 hectares farms) The Law for the Protection of Retail Trade; no new department stores

Establishment of wehrwirthschaft- a defence economy The aim was to create self-sufficiency ( modern large scale farms to be introduced) Rearmament with the help of the BIG BUSINESSMEN (cartels, monopolies) In 1933 40 % of German economy under monopolies´rule In 1937 70 % ( e.g. Krupp, Farben)

c) The compromise Hitler had to please both the people and make Germany ready for war→ introduction of ” GUNS AND BUTTER”-policy - Germany could not invest so heavily on the rearmament because they had to maintain reasonable standards of living

2) Was there an economic recovery in 1933-1939? H. Schacht´s programme introduced in 1933→ to reduce unemployment, to stimulate the economy, to ease the payments problem GET FAMILIAR WITH THE PROGRAMME ON PP. 211-212 AND TRY TO JUSTIFY THE CLAIM: ”Schacht´s programme was a success”

Was Germany ready for war in 1939? 4-year Plan introduced in 1936 / Göring - self-sufficiency - production of substitutes, synthetic materials, artificial rubber - chemical industry to be encouraged -steelworks, heavy industry -regulations of controling foreign exchange, targets for private industry

It was a success to some extent A growth in output in all areas, but overall targets were not met By 1939 1 /3 of German raw materials still imported, shortage of foreign exchange to buy necessary goods Tim Mason; German economy on a verge of a collapse in 1939→ made Germany to start the war ( the conflict between ” Guns and Butter)

Historians views R. Overy; The war caused the economic crisis A.J.P. Taylor: Hitler had to keep up consumer production, he was not for rearmament and for war B. Klein: Germany was ready for a short war

Speer´s programme, 1942→