1. Living standards: winners and losers Rearmament and gearing the economy for war.

2. Connector
“Before: Unemployment, hopelessness, desolation, strikes, lockouts. Today: Work, joy, discipline, comaradarie. Give the Führer your vote!”
“Guns will make us strong, butter will only make us fat. We have no butter... but I ask you, would you rather have butter or guns? Preparedness makes us powerful. Butter merely makes us fat” Herman Goring

3. Big Picture Hitler came to power on the back on an economic crisis
By 1939 he had managed to change the economic outlook of Germany into a European superpower
How was he able to do this?
Big Picture

4. All to know the 4 main features of economic policy through peer teaching
Most to research at least one aspect of the economic recovery
Some to do this with support
outcomes

8. Balance of payments Two fears
Rapid increase in demand would rekindle inflation
Rapid increase in demand would lead to the emergence of trade deficit
Inflation-under control due to lack of demand and control of prices and wages
There was however a massive problem due to balance of payments as Germany was importing more than it exported
Balance of payments

9. Economic policy was under the control of Hjalmar Schacht, President of the Reichsbank, showing the Nazis working with big business
The state controlled capital- lower interest rates, control of capital
Assistance for farming and small business- tariffs, subsidies, Reich Food Estate, allowances, grants,
State investments in public works-RAD (reich labour services), Law to Reduce Unemployment autobahns, rearmament, construction, reforestation, motorisation, building housing
Economic recovery

10. Four main themes Economic recovery 1933-36- Four Year Plan 1936-1939-
Role of big business-
Did Germany have a war economy in peacetime?
Until produce at least one slide- present in 30 mins
Four main themes

11. In groups/pairs Economic recovery 1933-36 – PR, RV,OC, NA
Four Year Plan ZI KK
Role of big business –Did Germany have a war economy in peacetime? – LB TJ PK
Rearmament- BN HR
You have until to research on area, create a slide/ two slides, then present to the rest of the group
In groups/pairs

12. 4 Year Plan Increase agriculture production
Retain key sectors of work force
Govt regulated imports / exports
Achieve self sufficiency of raw materials
Probs- too many overlapping agencies, role of Goring
4 Year Plan

13. Economic recovery 1933-36 Not a success Bankrupt small businesses
Law to Reduce Unemployment to introduce state run schemes
Government lent money to companies to make jobs
5 billion Reichmarks were invested in state run programs
Economic recovery

14. Did Germany have a war economy in peacetime?
Priority- building arms, lack of luxury goods and everything was focused on rearmament
But- did not have enough raw materials,Germany imported more than it exported especially for food
Did Germany have a war economy in peacetime?

15. In 1934 he was dictatorial powers over the economy which he then used to introduce the New Plan of September 1934.
The government now decided what was going to be imported eg cotton was reduced but heavy metals increased
Also
Bilateral trade agreements
Reichsmark currency set up
Mefo bills- like credit notes used by the government to gaurantee payment for goods, held for 5 years and earning 4% interest, which successfully disguised government spending.
Schachts New Plan

16. Answer past source paper on page 75 of the revision guide
Homework

17. Add to your notes.
Presentations

18. Review - Essay Question
“The handling of the economy was poorly co-ordinated and this accounts for the weaknesses in German war production in the years ”
How far do you agree with this view?
Review - Essay Question