1. Noel Dube 12R

2.  Hitler was determined & lucky.  German & World slump already had bottomed out 1932  Economy was already improving before the handover  It was difficult to take action under the Weimar constitution  Weimar had already ended reparation payments which helped psychologically  Reject orthodoxies of economic liberalism that constrained Weimar Politicians  State intervention & deficit financing

3.  Problems:  Short of essential raw materials  No foreign currency to pay for imports  Exports at a slump  Confidence lost  Investment low  High unemployment SOLUTION: Lack of raw materials~ Developing Ersatz I.e. Buna: artificial rubber from acetylene SOLUTION: No foreign currency to pay for imports~ Deficit Financing & Mefo Bills Government spends more money than it receives in revenue + credit notes with interest to pay for things SOLUTION: High unemployment~ Public work schemes & increased public expenditure and investment. I.e. construction of autobahns & homes

4.  Schacht’s other solutions:  Provided orders & subsidies for private companies to take on more workers  Some groups no longer eligible to register for unemployment relief (Jews)  Dept repayments were suspended  The unemployed were conscripted into the army German Armed Forces: 1933: 100,000 1939: 1,400,000 German Armed Forces: 1933: 100,000 1939: 1,400,000

5.  Trade problem solutions :  Bilateral Trade Agreements  Especially with the Balkan States  Supplied most of Germany’s raw material imports  New Plan of 1934  Gave the government power to regulate imports through controlling allocation of foreign exchange

6.  September 4, 1936 Goering Replaced Schacht  Hitler wanted Germany ready for war in 4 years  Priority given to rearmament Achieved by autarky - Self-sufficient food and industrial production - Drive to develop raw materials and machinery - Regulations of foreign exchange, labor, raw materials, prices, etc 1.The German armed forces must be operational within four years 2. The German economy must be fit for war within four years The extent of the military development of our resources cannot be too large, nor its pace too swift An extract from the Four-Year Plan Memorandum, August 1936

7.  Was it successful?  Autarky was crucial to avoid damage inflicted by an economic blockade, however Germany was no able to lose its dependence on other countries for key commodities.  They did, however, increase production greatly. CommodityActual Output (in thousands of tons) 193619381942 Four-Year Plan Target Aluminum 98166260273 Buna Rubber 1596120 Nitrogen 7709149301040 Explosives 1845300323 Steel 19,21622,65620,48024,000 Iron ore 2255336041375549 Brown Coal 161,382194,985245,918240,500 Hard Coal 158,400186,186166,059213,000 Oil 17902340626013,830

8.  Extra resources into industries related to rearmament contributed to economic recovery  Focus on militarization was a sign of the radicalization of the regime  Only small scale war was intended, so when the UK and France stepped in, Hitler had to rush rearmament are gear the whole economy to war.  GUNS OR BUTTER Guns or butter? Tension between putting economic resources into rearmament or into consumer goods. While there was a strong urge for rearmament, there was evident concern to ensure even supply of both aspects.

9. Butter (more stress on consumer goods) Guns (more stress on rearmament) Advocates: Schacht, other industrialists Strategy: Develop consumer goods Develop exports Limited rearmament Develop links with other countries Advocates: Goering Strategy: Major rearmament Autarky Siege Economy GUNS OR BUTTER

10.  Blitzkrieg 1939-41  Austria and Czechoslovakia were obtained: helped with Autarky (1938-39)  1939 invasion of Poland resulted in the UK and France joining the war  Germany was not yet fully prepared for a major war  So…Blitzkreig period-Economy was well suited to Germany’s military needs

11.  Germany at War 1942-45  Nazi Armies stopped in Moscow 1941- Nature of the war began to change  Massive economic drain  Despite changes in economic policy to relax constraints on industry, with increased output, the economy could not keep up with the military strain.

12. WHO GAINED THE MOST FROM THE NAZI ECONOMY? The Elite and Big Business -Growing demand for food -Nazis smashed independent labor movement -Military industries grew: airplane factories, chemical companies BENEFITTED THE MOST! “Profits went above all to the industries who were prepared to collaborate actively with the regime” Hiden, Republican and Fascist Germany, 1996, p129

13. WHO GAINED THE MOST FROM THE NAZI ECONOMY? The Workers -increasing -demand for skilled labor increased -Armament industry workers  better living conditions -1936, 35marks a week (6,000,000x better than before) -DAF improved workers’ leisure opportunities MANY PEOPLE FELT THEY HAD A BETTER LIFE UNDER THE NAZIS “The German labor front…for all working people without reference to their economic and social position” Government statement on the role of the DAF in Nov. 1933

14. WHO GAINED THE MOST FROM THE NAZI ECONOMY? The Mittelstand -The small farmer/trader -tight credit, influence of big business, slowness of official agencies to pay bills resulted in many going bankrupt -cannot compete with larger firms ROLE IN ECONOMY DECLINED “Shortages of goods restrict their turnovers…cannot respond by putting up their prices…raw material shortages…burden of taxes…” SOPADE report 1939

15. VERY SUCCESSFUL!  Recovery from the Great Depression  Hitler restored full employment to Germany  Built economic strength to dominate Europe by 1941 Not as successful as one might think…  Autarky was not achieved  Rearmament was wasteful and disorganized  Rearmament priorities meant the mass of people failed to benefit greatly from economic growth

16. Dan k für ihre zeit!