1. NAZI ECONOMIC POLICY 1) Economy brought under state control 1933-39

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/ 7.5.-10 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-suffciency ( 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)

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. 94-95 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 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)

8. HISTORIANS VIEWS  R. Overy; The caused the ecnomic 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→