1. Hitler's Economic Policy
How Hitler Transformed the German Economy
By Mr Walker
23/02/2019
Weimar and Nazi Germany

2. Weimar and Nazi Germany
Objectives
At the end of this lesson you should be able to:
Understand Hitler’s priorities on coming to power
Evaluate the Schacht period of economic management
Understand the importance of Goering and the 4 year Plan
Evaluate the success or otherwise of Nazi economic policy
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Weimar and Nazi Germany

3. Weimar and Nazi Germany
Unemployment
During the election campaigns Hitler had promised to solve unemployment. This was only one of his aims
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Weimar and Nazi Germany

4. Hitler’s economic priorities
1. Drag Germany out of the world recession
2. Solve unemployment (which he had promised to do)
3. Make Germany an “autarchy” – self sufficient
4. Get rid of Jewish industrialists and give their businesses to “Aryans”
4 Transform the economy to focus on rearmament and war
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Weimar and Nazi Germany

5. Weimar and Nazi Germany
Hjalmar Schacht
Schacht was President of the Reichsbank who directed German economic policy
He believed in steady growth and a stable currency
He promoted trade agreements with developing countries trading manufactured goods for cheap raw materials
He was against spending out too much on rearmament before the German economy was strong enough
His New Plan of 1934 aimed to reduce imports into Germany and to strengthen the currency
He fell out with Hitler over the speed of rearmament and was replaced by Hermann Goering in 1936
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Weimar and Nazi Germany

6. Weimar and Nazi Germany
Hitler’s Ideas
German economy can be converted into a war machine
Germany must rearm quickly, conquer countries by Blitzkrieg or lightening war, takeover their economies and move on
Conquered countries would give the master race “Lebensraum”
By exploiting conquered countries living standards could be maintained at home despite all the money being spent on war
In 1936 Goering was appointed to introduce a 4 year plan to put Hitler’s ideas into action
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Weimar and Nazi Germany

7. The aims of the 4 year Plan
Speed up rearmament and make Germany ready for war
Make Germany self sufficient in raw materials “autarchy” by developing home grown substitutes.
In 1933 total money spent on the military was 1.9 million marks by 1939 it was 32.3 million!
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Weimar and Nazi Germany

8. What were the results of this?
The size of the German army grew massively
Hitler became more confident and started to openly break the Treaty of Versailles
Czechoslovakia 1938
Austria 1938
Poland 1939
World war broke out!
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Weimar and Nazi Germany

9. Was the 4 year Plan a success?
Unemployment dropped quickly 4.8 million in 1933 to 0.5 million in 1938
Wages rose slightly but were still lower in 1938 than they had been in 1928
Working hours went up to 49 hours per week in 1939 – 52 hours in 1943 to over 60 hours per week by 1945
There were fewer consumer goods (personal and household goods
Trade unions were replaced by “Beauty of Labour” and strength Through Joy” who organised better conditions and leisure activities
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Weimar and Nazi Germany

10. Were people better off under the Nazis?
Unemployment fell everywhere not just in Germany
Some people were forced to work on public works
There were disadvantages to SDA and KDF – workers had no representation
Workers put more into the economy than they got out
If you were “Aryan” and of no strong political beliefs life was relatively good
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Weimar and Nazi Germany

11. Weimar and Nazi Germany
Tasks
1. Research a short case study factfile on Hjalmar Schacht and Herman Goering
2. Following further research answer the question, Was Nazi economic policy a success
23/02/2019
Weimar and Nazi Germany