Rule of Hitler - Economy

7/26/2019 Rule of Hitler - Economy

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German Economyunder Hitler

Blah Blah Blah we will be presenting on German economy under hitler. As economy

is quite a dry but confusing topic we have spared you the trouble of looking at memes

but we have infused the slides with enlightening propaganda and intelligent humour.


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Contents

1. Nazi Germany 1933

2. Economic Recovery 1933-1936a. Reduction in unemployment

b. Schnachts Economic Policy

c. Rearmament and Autarky

3. 4 Year Plan 1936-1940

4. Total War Economy 1942-1945

5. Evaluating Hitlers economic policy

6. Conclusion


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The economic setting: Nazi Germany 1933

Hyperinflation after WWI

Great Depression was responsible for the undoing of the post-war Weimar Regime

Hitler was appointed Chancellor on January 1933

Recognized the supposed failure of the free market and the need for nationally guided economic

development

His methods summarised: emphasising the creation of more jobs, subsidies for hiring more workers in

the private sector, increased public expenditure and investment and tried to stimulate consumer

demand

Before we begin, heres a quick summary of the economic background in 1933.

At the end of WWI, Germanys financial position was disastrous. Besides economic

ruin, it had to pay reparations to the Allied powers. The Weimar government printed

money to pay off its debts, but this created hyperinflation. Savings became worthless

and most Germans became poor overnight.

Prior to the great depression, germany had negotiated loans with America to maintain

its economy. As the great depression hit, America recalled their loans from Germany

causing the German economy to come to a standstill. Companies throughout

germany went bankrupt and unemployment rose from 650,000 in 1928 to 6 million in

Jan 1933. The government was unable to resolve these economic problems.

Therefore, the Nazi Partys solutions were seen as a viable alternative.


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Economic Recovery 1933-1936

Three Important Economic Aims

1. Reduce unemployment

2. Re-armament

3. Achieve economic self-sufficiency (Autarky)

Here are the three aims that guided Hitlers economic decisions in the years to come,

in no particular order of importance.


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Economic Aim 1 - reducing unemployment

Aims and Intentions

Tackle the Depression caused by the Wall Street crash of 1929

Restore Germany to full employment

Macro-scale: Personal benefit for Hitler: improve conditions for millions of Germans create a

broader feeling of optimism legitimize his rule and enable him to gain favour constitutes

consolidation of power and political regime

Firstly, Hitler intended to tackle the Depression and restore Germany to full

employment. This would improve conditions for millions of Germans and create a

broader feeling of optimism, both of which would consolidate the regime politically.


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How was this achieved?

Reich Labour Servicework on government building projects many people

were hired reduced unemployment

Projects included:

Irrigation ditches

New motorways (autobahnen), 3000 km of roads

Public buildings, schools and hospitals

The nazi party set up the Reich labour service to work on public works and

government building projects. This was a massive public works programme in which

irrigation ditches, new motorways, railways, public buildings, schools and hospitals

were constructed. Through this project, the Reich Labour Service helped to reduce

unemployment by employing jobless people to work on these public building projects.

At the same time, women were made to stop working and confined to domestic

activities. The jobs that were previously held by these women were then given to

unemployed men.


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Independent trade unions were banned

May 1933: Nazis set up their own trade union, the Deutsche Arbeitsfront (DAF)

Banned strikes, sackings and lockouts

Everyone had to join

Ensured there was no workers uprising, only obedience

Working hours were increased and wages were frozen (1935)

1933: Created Kraft durch Freude(Strength through Joy)

1938: Created Schonheit der Arbeit (Beauty of Work)

In the process of reducing unemployment, the Nazi Party expanded economic control

over Germany. All independent trade unions were banned, except for one, the

German Labour Front or DAF, the abbreviated form of its german name which I cant

pronounce. The DAF banned strikes, sackings and lockouts, so as to maintain

discipline among both workers and employers so as to maintain the stability of

productivity and enable the Nazi Party to exercise control over industries. Everyone

had to join the DAF, such that all workers in Germany were now represented in one

national body. Membership included employers as well as employees. DAF was the

sole arbiter on wages, working hours and discipline. The aims of DAF was to win

workers over to Nazism and increase production.

In 1933, DAF launched Strength through Joy, intended to improve workers leisure

opportunities, with subsidized holidays such as holidays, hikes sport, theatre and

cinema visits. In

As such, through such worker-oriented facilities, there was plenty of incentive to work.


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Kraft Durch Freude - Strength Through Joy

Also known as KdF

Established to provide workers with leisure opportunities cheap cruise holidays skiing, sailing and other sports trips to the theatre and cinema health clubs free holidays

Kept the workers happy

Removed social barriers

Work and Bread, a wonderfulblessing to the unemployed andstarving

The banning of all trade unions was something worth complaining about. Therefore,

the DAF established the KdF movement to keep workers happy in hopes of boosting

their productivity (hence the term Strength through Joy). Through the KdF,

everybody had a job, and a wage. To people who had been unemployed and

starving, 'work and bread' was a wonderful blessing worth every civil liberty

they lost.

which gave workers rewards for their work - evening classes,

theatre trips, picnics, and even free holidays.Through the KdF thestate was able to control the individual, got everyone to conform and managed their

leisure time. It was a way of removing social barriers. In the past, only the rich could

afford a holiday.


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Unemployment rates decreased as a result of the jobs provided:

1933: 6million

1936: 2.5 million

1938: 0.2million

Schutzstaffel (SS), the NSDAPs racially elite*unit, persecuted the unemployed by

branding them as lazy.

By Hitlers standards.

The Reich Labour Service was indeed effective in reducing unemployment to a

noticeable extent as supported by these figures.


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How Hitler reduced unemployment withoutactually reducing unemployment

Jews were removed from their jobs and these jobs were given to men

Women were removed from their jobs and these jobs were also given to men

Jews and women went unemployed

Jews and women were not counted in unemployment statistics

However, there was a catch to Hitlers policy of reducing unemployment: It is arguable

that while unemployment figures were reduced, the numbers employed did not

increase by that much, simply because a portion of the jobs created were as a result

of kicking Jews and women out of their jobs and letting other German men take their

places. Since Jews and women were not counted in unemployment statistics, they did

not contribute to unemployment figures in the statistical sense.


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Economic Aim 2 - Balance of Trade

Aims and Objectives

Hitler appointed Hjalmar Schacht first as President of the Reichsbank in 1933,

then Economics Minister in 1934

Schacht reassured the economic elite that their policies would not be

detrimental to them since Schacht had close ties to them

He used deficit financing to boost the economy, and pioneered the use of Mefo

bills


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Deficit Financing

the government is able to increase public expenditures by borrowing money

instead of increasing taxes

used this to boost the economy


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Mefo Bills

Financed increase public expenditure without causing inflation

Issued by the Reichsbank and guaranteed by the government

Funded about half of Germanys rearmament programme during 1933-1938

Also disguised military expenditure


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New Plan of 1934

In 1934, the revival of the economy was problematic because of balance of

trade deficits Germany importing more than it was exporting

gold and foreign currency reserves running extremely low

The new plan allowed the government to regulate imports by controlling the

allocation of foreign exchange. Imports had to be approved by the government

A series of bilateral trade agreements were made, especially with Balkan states supplied much of Germanys raw material imports

included some barter which eliminated the use of scarce foreign currency

served to increase Germanys influence in this area


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Results

Inflation was slowed down with state intervention (control over wages and

prices) and use of Mefo bills

Trade agreements with other countries that contributed much to Germanys

need for raw materials


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Economic Aim 3 - Rearmament and Autarky

Why rearmament? In anticipation of future war, German economy must become as self-sufficient as possible

Economic recovery more resources utilized to rebuild Germanys military might

such resources included:

steel, coal, oil, explosives

Thus re-armament was necessary in order to make Germany ready for anticipated war.

Creation of Wehrwirtschaft - (defence economy)

German Economy was geared to bolster the cost of War

Hitlers intended to create a defence economy geared to the needs of future war. This

was inspired by the realization that Germany had lost WWI, mainly because such a

long and drawn-out conflict eventually caused the economy to collapse. In anticipation

of a future total war, and to ensure Germany was adequately prepared, the German

economy would have to expand essential war materials such as steel, coal, oil and

explosives. Additionally, the workforce would have to be trained for skills transferable

to war production.


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How was re-armament achieved?

1935: Conscription for for all 18-25 year old males Made to do military service for 2 years

Armed forces grew from 100,000 in 1933 to 1.4 million in 1939

Big businesses that produced important products for war were given lucrative

government contracts.

Rapid rearmament

Germany was primed for War


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Autarky Self-sufficiency in the production of food and raw materials especially when at

war

Not being dependent on imports for economic survival.

Bolster the economy against the financial burden of war via trade embargos

(Germanys economy was mostly geared towards preparing for war, out of

resentment for the harsh conditions that were set against them after losing the

WWI)

Major emphasis on rearmament and self sufficiency

Little foreign resistance

Closely related to rearmament was autarky, addressing the self-sufficiency in the

production of raw materials especially when at war.


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Increase production of raw materials such as iron and food

Develop home-grown substitute products for the key commodities like rubber

and coal


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Propoganda poster

used to encourage

Germans to contribute

to national self-

sufficiency (Autarky)

Translation:

Hitler isbuilding/constructing(in Germany). You canhelp. by buyingGerman goods.


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Economic Aim 3 - Autarky

In the end, autarky enjoyed very limited success

Growing pace of rearmament, demand of raw materials not met, depended on

foreign imports

Germany continued to import a lot of goods such as butter, oil and vegetables.

In 1939, The Third Reich still depended on foreign imports for 33% of its raw

materials, especially iron

The development of key commodities was extremely inefficient

6 tons of coal to produce one ton of oil


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4-Year Plan and Total War Economy

Give me four years. There has beentime enough in four years to find out

what we cannot do. Now we have to

carry out what we can do. I thus set

the following tasks.

Hitler expressing his position in a secret

memorandum, August 1936

(Explain the propaganda poster, possibly googling what the words mean)

Hitler quote: time enough in four years refers to the duration of WWI in which

Germany was defeated.

Although, or simply because it was secret, this memorandum is one of the most

important documents of Nazi history, because it provides a clear insight into Hitlers

war aims and the development of the Nazi economy.

(The poster reads Give me 4 years in English. )


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Nazi 4-year plan 1936-1940

Hitlers directives:

1. The German armed forces must be operational within 4 years

2. The German economy must be fit for war within 4 years.

The 4 year plan was under the control of Hermann Gring, who became

economic dictator

Explain some key terms in the directives that will shed light on how

these would guide and translate into practical action from 1936-

1940:

to be operational clearly was an order to expand rearmament

fit for war refers to the policy of autarky which was to maintain self-

sufficiency in the production of food and raw materials especially

when at war.

increase agricultural production

-re-train key sectors of the workforce

-national control/regulation of imports and exports

-self sufficiency in the production of raw materials

-strengthen national socialism -----> allow for rapid rearmament


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Nazi 4-Year Plan 1936-1940Concrete objectives of the 4 Year Plan:

Regulate imports and exportsprioritize strategic sectors e.g. chemicals and

metals at the expense of agricultural imports

IG Farben, responsible for producing Zyklon B (hydrogen cyanide gas), received well over 50% of

government investment

Control key sectors of the labour force Reich Price Commissioner

Increased work direction by DAF

Make Germany self sufficient in war materialsby: increasing production

developing home grown substitutes (ersatz) oil instead of coal, artificial rubber (buna)

Attempt to increase agricultural production, avoiding imported foodstuffs grants for fertilizers & machinery

Now that HItler had given his directives and expressed his position, these had to be

translated into practical objectives that the 4 year plan would have to meet.

Firstly, The Plan would regulate imports and exports, so as to prioritize strategic

sectors at the expense of agricutlural imports. Such strategic sectors included metals

and various chemicals which were used to make tanks, aeroplanes, explosives or

poisonous gas used for the murder of numerous political prisoners in the

extermination camps at Auschwitz.

Secondly,

Thirdly, to increase the production of raw materials, so as to reduce the financial cost

of importing vital goods for rearmament and war like steel, iron and aluminium. In

tandem with this, industries would also develop substitute products that could replace

imported products.Examples include using oil instead of coal, and the production of

artificial rubber.

Lastly, to increase agricultural production so as to avoid imported foodstuffs that

would mean a lot more money spent. To achieve this, the Nazi government provided

grants for fertilisers and machinery.


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Nazi 4-Year Plan 1936-1940Commodity(thousand tons)

4-Year Plantarget

output 1936 output 1938 output 1942 Increase from1936?

Hard coal 213,000 158,400 186,186 166,059 yes

Steel 24,000 19,216 22,656 20,480 yes

Aluminium 273 98 166 260 yes

Oil 13,830 1790 2340 6260 yes

Artificial rubber 120 0.7 5 96 yes

Explosives 223 18 45 300 yes

The table shows the success of the 4 year plan measured in statistics. War

commodities increased from 1936


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Critics of the new Nazi

regime felt it was more

interested in rearmament

rather than encouraging

trade and peace.

Guns or Butter?

A poster that appearedin a banned magazine,

inspired by a speech bythen- economic dictatorGring. It says:

Would you rather havebutter or guns? Shall webring in lard or iron ore?I tell you, guns make us

powerful. Butter only

makes us fat.

Hitlers stress on miltiary requirements, with extra resources and capita devoted to

rearmament, brings us to the idea of Guns vs Butter. It relates to the tension

between between putting economic resources into rearmament and supplying

consumer goods to German consumers. The above is a poster intending to criticize

the Nazi regime and its prioritizing of rearmament above supplying consumer goods.


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Guns or Butter? Through the KdF, the Nazis devised a scheme to

allow workers to buy a Volkswagen Beetle car for

a small weekly payment.

It was possible to pay for the car in instalments,

and the buyer would only receive the car after

they had paid the balance in full.

When the Second World War started in 1939, the

car factories had to turn their attention to

manufacturing arms.

Many Germans lost their money. (probably

invested in the production of war materials)

One of the KdFs popular schemes was the Volkswagen - the people's car. It

was possible to pay for the car in instalments, and the buyer would only

receive the car after they had paid the balance in full. When the Second World

War started in 1939, the car factories had to turn their attention tomanufacturing arms. As a result, many Germans lost their money, and there

were demonstrations and expressions of discontent.


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Guns and Butter: Blitzkrieg 1939-1941

lightning war

Influenced by Nazi economic policy

Use of dive-bombers, paratroopers and motorized infantry in invasions

Relatively quick method of attacking ensured wars remained short

Hitler recognized Germanys failure to achieve autarky (self-sufficiency)

Motive was to prevent excessive strain on economy and economic collapse mid-

war

A short war would not reduce the production of consumer goods excessively.

Could maintain a reasonable balance between guns and butter

Historians argue that Nazi economic policy could have influenced the Blitzkrieg, a

military strategy Germany adopted in WW2. It was the use of dive-bombers,paratroopers and motorized infantry in invasions. Such an approach kept warsshort. Such an approach was attributed to Hitlers recognition of the failure ofautarky and Germanys inability to stay self-sufficient. Because of this, Germanycould suffer an economic collapse in the middle of the war, hence a long, totalwar would place Germany in a precarious (or dangerous) position. Additionally, ashort war would prevent the production of consumer goods from being reducedexcessively due to keeping up with war efforts and producing war materials. Inthis respect, Germany seemed to have both guns and butter.


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Total War Economy 1942-1945

December 1941: Hitler issues Rationalization Decree

Feburary 1942: Albert Speer appointed as Minister of Armaments

His close relationship with Hitler allowed him to exert increasing political

influence.

Able to implement a whole range of personal initiatives to improve production,

such as:

Employing more women in the arms factories

Making effective use of concentration camp prisoners as workers

Preventing skilled workers being lost to military conscription

In December 1941, Hitler issued the Rationalization Decree, which sought to

streamline war production and to restructure control of the economy.

In Feburary 1942: Albert Speer was appointed as Minister of Armaments. His close

relationship with Hitler allowed him to exert increasing political influence. Managed to

implement a whole range of personal initiatives to improve production and optimize

human resources. 3 of the more notable ones are shown.


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October 1942:

Ammunition production increased by 97%

Tank production rose by 25%

Total arms production rose by 59%

Skillful manager of the war economy

As you can see, Speer proved himself to be a skillful manager of the war economy,

which resulted in a fundamental increase in arms production. Ammunition production

increased 97%, tank production 25%, total arms production rose by 59% within the

first six months of Speers appointment.


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Germany defeated at Stalingrad in winter 1942

Comprehensive redeployment of existing German workforce

By 1943, 61% of all German labour was involved in war production.

Enormous increase in female workforce 1944: 50% of female population involved

Recruit and conscription of enormous amounts of foreign workers to aid war

production in the Reich. 8 million were conscripted

After Germanys defeat at Stalingrad in the winter of 1942, a total war economy began

in earnest. To further utilize and maximize human resources, 3 distinct strategies

were used:

Firstly, the comprehensive redeployment of the existing German workforce, which

meant that by 1943, 61% of all German labour was employed in war production,

compared with 21% in 1939.

Secondly, there was an enormous increase in the female workforce, an initiative

introduced by Albert Speer upon his appointment as Minister of Armaments. This

increase amounted to half the female population by the beginning of 1944.

Lastly, the Nazi authorities in occupied territories were able to recruit or to conscript

enormous numbers of foreign workers, a total of 8 million by 1944, to aid war

production in the Reich.


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Germany Britain USA USSR

1940 10,200 15,000 6100 7000

1941 11,000 20,100 19,400 12,500

1942 14,200 23,600 47,800 26,000

1943 25,200 26,200 85,900 37,000

1944 39,600 26,500 96,300 40,000

1945 7052 12,100 46,000 35,000

Aircraft produced

While Germany had managed to increase its arms production manyfold since the end

of the 4-year plan, it still lost out to countries like USSR and the USA when we

compare their war production output. In 1945 the Allies carried out blanket bombings

on German factories that contributed to the sharp decrease in production. At this

juncture it is worth pointing out that German tank production decreased from 19,000

in 1944 to 3,900 in 1945, also as a result of the blanket bombings.


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Collapse of the German War Economy 1945

From 1943 onwards the German War Economy was under tremendous stress

In that year allied bombing forced the diversion of 2 million men and 50,000 pieces of artillery

into anti-aircraft service.

By the following year, aircraft production was 31% below target and tank production 35%

below.

Bombins Persisted until 1945 where the War Economy finally gave way and

collapsed

Industrial destruction and breakdown in communications

Germany was forced to divert available resources towards the

construction of anti-aircraft installations and underground industrial sites Prevented Germany from increasing its arms production even further

Unable to achieve a total war economy

From 1943 onwards the German War Economy was under tremendous stress. In that

year allied bombing forced the diversion of 2 million men and 50,000 pieces of artillery

into anti-aircraft service. By the following year, aircraft production was 31% below

target and tank production 35% below.

Historians argue that the effects of the Allied bombings prevented Germany

from increasing its arms production even further. Additionally, it caused

industrial destruction and breakdown in communications. In anticipation of

further bombings, Germany was forced to divert available resources towards

the construction of anti-aircraft installations and underground industrial sites.

As a result of this, Germany was unable to achieve a total war economy. The

peak in production in 1944, was arguably well below its full potential.


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Was the focus on rearmament beneficial ordestructive?

1932 1933 1934 1935 1936 1937 1938

Construction 0.9 1.7 3.5 4.9 5.1 6.1 7.9

Transportation 0.8 1.3 1.8 2.1 2.4 2.7 3.8

Rearmament 0.7 1.8 3.0 5.4 10.2 10.9 17.2

All figures in billion RM

The table shows the public expenditure in Germany in various sectors of the

economy. Over the years, an increasing percentage of capita was devoted to

rearmament, as compared to the other economic sectors. Note the significant

increase in expenditure on rearmament upon the introduction of the 4 year plan in

1936.


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Was rearmament truly necessary?

Germanys focus on production on war materials such as oil, steel, coal and

explosives was achieved at the expense of production of consumer goods.

Germany was spending more money than it was earning from export and selling

of consumer goods.

Capita could be achieved in 2 ways: export of consumer goods

economic exploitation of invaded countries during WWII

Due to the large amount spent on rearmament, a strong military was produced

which was useless unless Germany went to war

Although Germany did go to war, there was a shortage of food and basicnecessities during the war.

In this slide, Ill be examining the pros and cons of rearmament.

Germany was spending more money than it was earning from export and selling

of consumer goods. Not only was this indicative of the lack of consumer goods

being made available to the public, it also meant that Germany was plungingitself into national debt.


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Was rearmament truly necessary

German civilians derived little benefit from the additional food resources made

available by German military victories, the vast bulk being directed towards

military consumption

In fact, food was diverted at a faster rate to the military than it was produced

Consumption in Germany declined by 25%, compared to 12% in Britain who was also involved in

WWII

Other commodities such as clothing became more difficult to obtain as

production was geared increasingly towards the requirements of the war effort

1941: 40% of textile output and 44% of all manufactured clothing was designated for use by the

armed forces

German civilians derived little benefit from the additional food resources made

available by German military victories, the vast bulk being directed towards military

consumption. In fact, food was diverted at a faster rate to the military than it was

produced. To illustrate this, consumption in Germany declined by 25%, compared to12% in Britain who was also involved in WWII. The reason why Germany experienced

a greater decrease in consumption than its European counterparts can be attributed

to a complex of causes. Even before the war, the focus on rearmament made it such

that there was less food being imported, as highlighted in the 4 Year Plan. Instead,

the German government tried subsidizing farmers so that more food could be

produced but this was ineffective due to the lack of machinery. Shortage of workers

too, because wages in agriculture and consumer industries were much lower than

their counterparts working in war industries little incentive to work limited

expansion of agriculture industries. Also, it was possible that the expansion ofagriculture could not keep up with the rising birth rate, attributed to the greater

number of women staying at home since they were banned from working.

Anyway, other commodities such as clothing became more difficult to obtain as

production was geared increasingly towards the requirements of the war effort. For

example, in 1941, 40% of textile output and 44% of all manufactured clothing was

designated for use by the armed forces


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Was rearmament truly necessary

Hitlers vision of a powerful militarized economy clearly failed the test of war. Recovery

from the Slump had been real enough. But at the point where that recovery might have

been used to improve living standards and expand trade Hitler chose to divert economic

development towards massive militarizationin a short term gamble that he could create a

new political and economic order In 1946 Germany was once again plunged into

poverty and economic stagnation- where Hitler found it in 1933.

R. Overy, Modern History Review, 1996

The above quote from a renowned historian aptly sums up the argument against

rearmament. The slump refers to the Great Depression which Nazi Economic

policies had helped Germany recover from.


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Impacts of

Hitlers EconomicPolicy: An Evaluation


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Benefit for workers

Reduction in unemployment Reich Labour Service and conscription programmes provided millions of jobs

Decreased from 6 million in 1933 0.2 million in 1938

Shortage of workers in 1939

Bonuses and other economic benefits

Increase in workers wages 1936: average wage was 35 marks a week, 10 times more than 1932

Ban on sacking - enabled Germans to retain their jobs

Implementation of KdF Everyone had a job and a wage, a wonderful blessing to the unemployed and starving

The first benefit was that there was a noticable reduction in unemployment as

mentioned earlier, decreasing from 6 million in 1933 to 0.2 million in 1938, over a

short span of just 5 years. At one stage, Germany was even facing a shortage of

workers. As demand for skilled labour increased, many employers gave their workers

added benefits by giving Christmas bonuses and providing insurance schemes.

Secondly, by 1936 the average wage of a worker was 35 marks a week, 10 times

more than the dole money which 6 million had been receiving in 1932. This enabled

All in all, Hitlers economic policy managed to increase employment rate and re-

invigorate the German economy,


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Workers did not benefit

Wages technically did not increase

Industrial demands of the regime and the need to produce materials for war

made increases in hours of up to 10% commonplace.

National average working week rose from 49 hours in 1939 to 52 hours in 1942

Material rewards were offset by declining conditions of employment

Increase in 150% in number of industrial accidents in 1933-1939

200% increase in occupational diseases in 1933-1939

Despite propaganda to show that wages had increased, this was matched by an

increase in working hours. For example, the national average working week rose

from 49 hours in 1939 to 52 hours in 1942. Thus, it can be argued that wages

did not increase because the workers were simply working longer hours. Also,


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Workers did not benefit

Workers lost their freedom and were tightly controlled

Banning of trade unions and consolidation of all workers/employees into DAF

prevented them from striking or bargaining for higher wages

Although sacking was banned, there were heavy restrictions in job mobility as

workers required government permission to leave their jobs. This was a

problem especially when working conditions were not good.

Another thing that demonstrates how the workers suffered under the economic policy

was the the fact that DAF was just an excuse to control the workers. Through the

banning of trade unions and the consolidation of all workers into the DAF, it prevented

workers from striking or bargaining for higher wages or better working conditions. DAF

had supreme authority over wages and working hours, and since all workers and

employers were inside, or should i say, under the control of the DAF, so when

Germany entered WWII, the workers were forced to work harder.


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Less benefit for women and Jews

Creation of jobs was achieved at expense of other groups Women

Jews

Women were pressured to leave their jobs and stay at home and take care ofchildren.

Jews and anti-Nazis had their jobs taken away and given to supporters of theNazis. Hence, in reality, some segments of German society did not benefit fromGerman creation of jobs.

Unemployed Jews and women did not contribute to total unemploymentfigures.

Hence in reality, segments of German society (especially Jews) did not benefitfrom German creation of jobs.

Firstly, although the Nazi government declared that they had reduced unemployment

in Germany, a closer look showed that the creation of jobs was achieved at the

expense of other groups in German society. Women were pressured to leave their

jobs and stay at home and take care of children. While the industrial expansion of the

4 Year Plan maid female employment unavoidable as they were involved in arms

production, professional posts remained closed to them. Jews and anti-Nazis had

their jobs taken away and given to supporters of the Nazis. Hence, in reality, some

segments of German society did not benefit from German creation of jobs.


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Benefit for big businesses

Big business benefited 4 Year Plan produced important products such as steel, coal, oil, explosives

Businesses that were important were given lucrative business contracts

E.g. Daimler-Benz, an aeroplane manufacturing company, had its factories fully paid for by

the state.

Between 1932 and 1941 production rose over 800%

E.g. IG Farben, a chemical firm, received well over 50% of governmental investment and its

profits were 240 million RM in 1939

The third benefit was for the big businesses, in the sense that since the re-armament

was so important to the government, and its top priority in the years of the total war

economy from 1942-1945, these big businesses that manufactured goods for war

were considered very important to the government. This meant that they were given

lucrative business contracts. For companies who were willing to collaborate actively

with the Nazi regime of establishing a war economy, production increased by up to

800% and profits increased by large amounts.


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Less benefit for small industries

Smaller Industries like agriculture did not enjoy similar levels of freedom

Limited agricultural growth

Consolidated and dictated by state

Lack of capital for investment limited mechanisation efforts and wages paid by

the Reich Food Estate

Lastly, because the government had chosen to invest more capital to further

rearmament and mlitarizsation efforts, there was a the lack of capital for investment

which limited mechanisation efforts and wages paid by the Reich Food Estate. Reich

food estate was kind of like the collective farms under Stalin where it regulated

production, imports, wages and prices.


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Conclusion

Nazi economic policy did have its benefits but it came at the expense of workers

well-being.

Rearmament came at the expense of the civilians as the redistribution of

government investment translated into lowered production of consumer goods.

In conclusion, Hitlers economic policies were successful in the short term. Under

Hitler, Germany was able to overcome its dire economic circumstances and increase

employment and wages. However, these benefits were offset by the lack of

improvement in working conditions and the restriction of their freedom. Moreover,

employment problems were only resolved with limited effectiveness as the reduction

in unemployment figures was due to the removal of women and Jews from their jobs,

making them unemployed as well.


46/46

References

History readings

Democracy and Dictatorship in Germany, 1919-1963 by Geoff Layton

Germany 1848-1991 by Derrick Murphy, Terry Morris and Mary Fulbrook

http://www.bbc.co.

uk/schools/gcsebitesize/history/mwh/germany/economicrev_print.shtml

http://www.bbc.co.

uk/schools/gcsebitesize/history/tch_wjec/germany19291947/2economicsocia

lpolicy_print.shtml
http://www.bbc.co.uk/schools/gcsebitesize/history/tch_wjec/germany19291947/2economicsocialpolicy_print.shtmlhttp://www.bbc.co.uk/schools/gcsebitesize/history/tch_wjec/germany19291947/2economicsocialpolicy_print.shtmlhttp://www.bbc.co.uk/schools/gcsebitesize/history/tch_wjec/germany19291947/2economicsocialpolicy_print.shtmlhttp://www.bbc.co.uk/schools/gcsebitesize/history/mwh/germany/economicrev_print.shtmlhttp://www.bbc.co.uk/schools/gcsebitesize/history/mwh/germany/economicrev_print.shtml

Rule of Hitler - Economy

Documents

Transcript of Rule of Hitler - Economy