How did the Nazis attempt to tackle the economic crisis?

Learning objective – to be able to outline the Nazis’ economic policy. I can describe some of the features of the Nazi economic policy. Grade D I can explain the how the Nazis attempted to tackle the economic crisis. Grade B I can explain and assess the impact of the Nazis economic policy. Grade A

Starter – This cartoon was produced in 1938 by David Low Starter – This cartoon was produced in 1938 by David Low. What is the message of the cartoon?

What were the objectives of the Nazis’ economic policy? The objectives of the Nazis economic policy were – To reduce unemployment – in 1933, unemployment figures stood at six million people. To build up German armaments industry and to rearm and enlarge the German armed forces. To make Germany self-sufficient so it could not be blockaded during times of war.

What problems did the Nazis’ economic policy face? The problems faced by the Nazis economic policy were – World trade collapsed during the Great Depression making exporting good very difficult. Germany were short in certain raw materials. Germany could not afford to pay for many imports.

Who was Hjalmar Schacht? Dr. Hjalmar Schacht was appointed President of the Reichsbank in 1933 and Minister of the Economy in 1934. A brilliant economist and loyal Nazi Party member, he was trusted by business leaders and foreign ministers alike.

What was the New Plan? In 1933, Schacht devised the New Plan to stimulate the economy. It tried to do four things – Limit imports. Make trade agreements with other countries to supply Germany with the raw materials its industry needed. Channel government spending into a wide range of industries. Reduce unemployment by creating public works projects, conscription to the armed forces and removing political opponents from jobs and replacing them with unemployed people.

Did the New Plan work? Between 1934 and 1936, the New Plan was important in bringing economic stability to Germany. Although, this was also helped by the world economic getting back into shape. Hitler felt that the New Plan was not rearming and preparing Germany for war quickly enough. Schacht disagreed with Hitler arguing Germany could not afford to rearm so quickly. Schacht was forced to resign in 1937.

Who was Hermann Goering? Hermann Goering was head of the Luftwaffe and President of the Reichstag. He was a close ally of Hitler. A military man, he had little economic experience. He was made Minister of the Economy in 1937.

What was the Four Year Plan? Schacht’s New Plan was replaced by the Four Year Plan. It aimed to prepare Germany for war within four years and make Germany self-sufficient in materials needed for war, such as rubber and steel. The Four Year Plan tried to – Increase production of raw materials needed for rearmament. Persuade big businesses to produce key synthetic raw materials. Reduce imports. Tighten controls on prices and wages. Use forced labour where needed. Build new industrial plants.

Was the Four Year Plan successful? Despite the Nazis pouring billions of Reichmarks into the Four Year Plan – By 1939, Germany was still dependent on imports for its raw materials. Arms had taken precedence over agriculture and by 1939 butter was still being rationed. It proved to Hitler that if Germany was to be really self-sufficient then it needed to conquer countries which could provide the raw materials they needed. However, unemployment was reduced to below one million by 1939.

Task Stick a copy of this visual representation of the aims of the Nazi economic policy into your exercise book. Beside each image write how it can contribute to answering the central question – ‘What were the aims of the Nazis Economic Policy?’

Task Complete the connect three worksheet. Remember you should – Write a two sentence definition of each word and how it relates to the Nazi economic policy. Group the terms into groups of three and explain the link between them. Extension Task Write a list of ten facts, in order of importance, about what you have learned about the Nazi economic policy. Justify each fact’s significance.

Plenary – a touch of Scrabble What are the three key words from this lesson that sums up your learning? Which word has the highest value if you used in a game of Scrabble? Compare with the person next to you. Which word has the highest value?