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

2. 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/ hectares farms)
The Law for the Protection of Retail Trade; no new department stores

3. 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 % of German economy under monopolies´rule
In % ( e.g. Krupp, Farben)

4. 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

5. 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 AND TRY TO JUSTIFY THE CLAIM: ”Schacht´s programme was a success”

6. 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

7. It was a success to some extent
A growth in output in all areas, but overall targets were not met
By /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)

8. 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

9. Speer´s programme, 1942→