2.1.10

Impact Of Economic Policies

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Industrial Elites and Nazi Economic Policies

It was crucial for the Nazis to have the support of the industrial elites. Whilst some elites benefitted from the policy of rearmament, others opposed the idea of autarky.

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Coal and steel elites

  • Relations with coal and steel were hostile. Industrialists who opposed self-sufficiency were charged with sabotage.
  • Private steel companies suffered because of the Reichswerke Goering. This government run steelworks had a priority on available materials and labour.
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IG Farben

  • IG Farben experimented with synthetic oil and rubber. It worked with The Office of the Four Year Plan and was given over 50% the government investment. It produced gas for extermination camps and half its workforce was forced labour.
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Benz

  • Benz were paid by the state to build new aeroplane factories. Its production rose over 800% between 1932 and 1941.

Impact on consumers

The aim of Wehrwirtschaft meant the consumer interests were not a priority for the Nazis.

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Tensions due to Wehrwirtschaft

  • Channelling all resources into Wehrwirtschaft was not possible. Maintaining some level of consumer demand was necessary for morale. Nevertheless this was a source of tension.
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Negative impact on consumers

  • Schacht, some industrialists and many in the military wanted more stress on consumer goods, increasing German exports. Goering disagreed.
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Historical assessment

  • Mason (1993):
    • The Nazi party was unable to focus completely on Wehrwirtschaft because of fear of popular unrest.
    • At the horseback meeting in November 1937 Hitler spoke of inflation, food shortages and the lack of foreign exchange (imports).
  • Overy (1982):
    • Although there were problems there was no crisis as the government controlled wages and prices and production and investment were growing.

Jump to other topics

1The Weimar Republic 1918-1933

2Nazi Germany 1933-1945

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