1. Did Hitler achieve an economic miracle?

2. Unemployment in Germany/Total
January million
January million
January million
January million
January million
January million
January ,000
Is this evidence for an economic miracle?

3. “History will judge us according to whether we have succeeded in providing work.”
Hitler

4. Aims: Understand Nazi economic policies
Make historical judgement regarding success of policies
Situation in 1933
Unemployment
Autarky
National Labour Service (Reichsarbeitsdienst or RAD)
German Labour Front / Robert Ley
Strength through Joy (Kraft durch Freude /KdF)
Hjalmar Schacht
Conclusion: was there an economic miracle?

5. Situation in 1933
Recap: discuss in pairs for 2 minutes what the situation was in 1933 (you’ve already covered it!)

6. Situation in 1933: crisis
Unemployment peaked at 6 million during the final days of the Weimar Republic – near enough 50% of the nation’s working population
Government unable to resolve problems
Great Depression sparked by Wall Street Crash
Hitler had promised to get German’s working again - propaganda played on fear of no hope
This was his economic priority:drive for full employment: aim of first 4 year plan (1932-6)

7. Economic policy?
Before coming into power rhetoric had been socialist e.g. control of big business
This did not survive into practice
Economic discussion in party forbidden
“Let them own land or factories as much as they please” state is supreme over owners and workers - Hitler
So economics was subordinate to politics

8. Unemployment in Germany/Total
January million
January million
January million
January million
January million
January million
January ,000
Reminder of figures

9. Methods used to decrease unemployment
Aim of first 4 year plan (1932-6)
Public works schemes (started by Von Papen and Bruning) extended:
Arbeitdienst - afforestation & water conservation schemes
Also building barracks & motorways (Autobahnen) 7000km
Regulations: labour not machines

10. Unemployment did decrease
But: how much of this was propaganda?
Women no longer included in the statistics so any women who remained out of work under the Nazi’s rule did not exist as far as the statistics were concerned.
The unemployed were given a very simple choice: do whatever work is given to you by the government or be classed as "work-shy" and put in a concentration camp.
Jews lost their citizenship in 1935 and as a result were not included in unemployment figures even though many lost their employment at the start of Hitler’s time in power.
Many young men were taken off of the unemployment figure when conscription was brought in (1935) and men had to do their time in the army etc. By 1939, the army was 1.4 million strong. To equip these men with weapons etc., factories were built and this took even more off of the unemployment figure.

11. Autarky (self-sufficiency)
Think: what were the possible aims for autarky? Why was it needed?

12. Autarky (self-sufficiency)
Second aim of 4 year plan
Goering in overall charge / Hjalmar Schacht - Reichsbank president also influential (later Minister of Economics)
Independent of world economic trends
Necessary because of boycotts & possible war
Bilateral agreements with Balkan countries
Less successful than hoped: by 1939 oil production 40% of what hoped & 30% raw materials imported

13. Schacht and Big Business
Larger enterprises supported - needed for rearmament and self sufficiency
Paid off foreign debts in Reichmarks
Trade agreements
Financial orthodoxy - reluctant to spend more than income nearly stopped rearmament
Showpiece successes

14. Hermann Goering Steel Works at Salzgitter

15. The Peasants
Protected from rising industrial prices and falling income from goods
Debts suspended for Mar-Oct 1933
Imported goods = higher tarriffs
Only Aryan farmers
Law went against larger farming units & modern methods - didn’t help search for autarky

17. National Labour Service (Reichsarbeitsdienst or RAD)
Public works
Wore a military style uniform, lived in camps near to where they were working and received only what we would term pocket money
Compared to the lack of success of the Weimar government and the chronic misery of 1931 to 1932, felt at least the Nazi government was making the effort to improve their lot

18. German Labour Front Set up by Robert Ley
Equivalent of banned trades unions
Workers could not be sacked on the spot - had to have government permission to leave jobs
Government labour exchanges organised jobs
Hours 60 to 72 per week
Strikes banned

19. Kraft durch Freude (KdF)
Strength Through Joy
Organised workers’ leisure time
Subsidised activities and holidays
Volkswagens - hire purchase

20. Conclusion Production had increased Unemployment had decreased
Workers lost freedoms
Wages never rose above levels
Were they better off? KdF
Economy ‘chaotic’: low foreign currency reserves; deficit
Confiscation of Jewish property & Austrian assets after Anschluss
Still impressive results
FOR STATS SEE PAGE 316

21. Interpretations
Marxists: Nazi regime front for capitalist aims (Trade unions / big business)
Cf. T. W. Mason - ‘primacy of politics’ (co-operation until 1936)
How far did economic recovery depend on war preparation?
Some debate over this: Klein (didn’t want tough measure to alienate) denied success related to war preparation - strong economic activity
vs Milward (more prepared for war)
Both interpretations subsequently challenged
Karl Bracher: ‘ruination’ of economy through exploitation - aiming for rearmament

22. The Bigger Picture
German (and other countries) already beginning to recover by 1933
Recovery depended on heavy state control
Unsound basis: no overseas investment so many loans (often forced) = heavy deficit
Not geared up for total war from the start
Once Nazis put on total war economy in 1943 increases remarkable but too late

23. An economic miracle?
In pairs draw up a list of factors pro and con the existence of an economic miracle