Living standards: winners and losers Rearmament and gearing the economy for war.

Connector “Before: Unemployment, hopelessness, desolation, strikes, lockouts. Today: Work, joy, discipline, comaradarie. Give the Führer your vote!” “Guns will make us strong, butter will only make us fat. We have no butter... but I ask you, would you rather have butter or guns? Preparedness makes us powerful. Butter merely makes us fat” Herman Goring

Big Picture Hitler came to power on the back on an economic crisis By 1939 he had managed to change the economic outlook of Germany into a European superpower How was he able to do this? Big Picture

All to know the 4 main features of economic policy through peer teaching Most to research at least one aspect of the economic recovery Some to do this with support outcomes

Balance of payments Two fears Rapid increase in demand would rekindle inflation Rapid increase in demand would lead to the emergence of trade deficit Inflation-under control due to lack of demand and control of prices and wages There was however a massive problem due to balance of payments as Germany was importing more than it exported Balance of payments

Economic policy was under the control of Hjalmar Schacht, President of the Reichsbank, showing the Nazis working with big business The state controlled capital- lower interest rates, control of capital Assistance for farming and small business- tariffs, subsidies, Reich Food Estate, allowances, grants, State investments in public works-RAD (reich labour services), Law to Reduce Unemployment autobahns, rearmament, construction, reforestation, motorisation, building housing Economic recovery 1933-36

Four main themes Economic recovery 1933-36- Four Year Plan 1936-1939- Role of big business- Did Germany have a war economy in peacetime? Until 1.45- produce at least one slide- present in 30 mins Four main themes

In groups/pairs Economic recovery 1933-36 – PR, RV,OC, NA Four Year Plan 1936-1939- ZI KK Role of big business –Did Germany have a war economy in peacetime? – LB TJ PK Rearmament- BN HR You have until 11.30 to research on area, create a slide/ two slides, then present to the rest of the group In groups/pairs

4 Year Plan Increase agriculture production Retain key sectors of work force Govt regulated imports / exports Achieve self sufficiency of raw materials Probs- too many overlapping agencies, role of Goring 4 Year Plan

Economic recovery 1933-36 Not a success Bankrupt small businesses Law to Reduce Unemployment to introduce state run schemes Government lent money to companies to make jobs 5 billion Reichmarks were invested in state run programs Economic recovery 1933-36

Did Germany have a war economy in peacetime? Priority- building arms, lack of luxury goods and everything was focused on rearmament But- did not have enough raw materials,Germany imported more than it exported especially for food Did Germany have a war economy in peacetime?

In 1934 he was dictatorial powers over the economy which he then used to introduce the New Plan of September 1934. The government now decided what was going to be imported eg cotton was reduced but heavy metals increased Also Bilateral trade agreements Reichsmark currency set up Mefo bills- like credit notes used by the government to gaurantee payment for goods, held for 5 years and earning 4% interest, which successfully disguised government spending. Schachts New Plan

Answer past source paper on page 75 of the revision guide Homework

Add to your notes. Presentations

Review - Essay Question “The handling of the economy was poorly co-ordinated and this accounts for the weaknesses in German war production in the years 1939-45” How far do you agree with this view? Review - Essay Question