Economic Policies 2

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Goering and the Four Year Plan

The Nazi's political aims of expansion drove Germany's economic agenda. This is seen in Goering's Four Year Plan.

Being war ready

The main aim of the Four Year Plan was to make Germany ready for war:
- The top priorities were rearmament and autarky in food and industrial production.
- The emphasis was on developing raw materials and machinery to increase armaments ready for war.

Autarky

Difficulties of autarky:
- Germany would not be totally self-sufficient but would not rely on imports for key commodities e.g. food, iron, oil, explosives, steel, rubber, coal.
Resources focused on developing ersatz goods e.g. making oil from coal.

The Office of the Four Year Plan

The Office of the Four Year Plan issued regulations controlling:
- Foreign exchange (and therefore imports); raw materials, labour etc. It also set targets for specific industries.

Economic targets

1939:
- Germany imported one third of its raw materials.
- Germany was self-sufficient in grain and potatoes; it was almost self-sufficient in vegetables and meat.
- However, it imported 43% of fats.
1942:
- Only the brown coal target had been met.
- Oil was at 45% of its target.
- Hard coal was at 79% of its target.
- Steel was at 85% of its target.

Impact on consumers

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.
Schacht, some industrialists and many in the military wanted more stress on consumer goods, increasing German exports.
Mason (1993):
- The Nazi party was unable to focus completely on Wehrwirtschaft because of fear of popular unrest.
Overy (1994):
- There were problems but no crisis as the government controlled wages and prices and production and investment were growing.

Business, trade and agriculture

The Nazis used major manufacturers and agricultural producers to support Goering's Four Year Plans and establish autarky. This came at the expense of many small scale businesses and farmers.

Gleichshaltung: the Reichsgruppe for industry

Part of the Reich Economic Chamber.
Large firms were made to join cartels and were helped to grow in order to meet Wehrwirtschaft aims.
Businesses faced controlled trade, foreign exchange, prices, wages and raw materials, although most remained privately owned.
Trades unions had been abolished and replaced with DAF.
1933: Law to Protect Retail Trade. This taxed large stores and banned new department stores.

Impact of Nazi policies on businesses

Small businesses benefitted from economic recovery. However, overall they lost out due to inability to compete with larger businesses.
Manufacturing businesses: independent artisans’ value of trade doubled yet 145,000 went bankrupt 1936-9.
Government policy favoured large-scale manufacturing in industries connected to Wehrwirtschaft rather than consumer goods e.g. Daimler-Benz, IG Farben
Over 300,000 small businesses went bankrupt.
Even important steel firms suffered if they did not follow Nazi policy e.g. RWHG.

Foreign trade

No major growth in foreign trade during the 1930s. As autarky was a government policy this could be seen as evidence of success.
However, Germany still imported a lot of raw materials and food. This was difficult because of a foreign exchange shortage. Firms contributing to Wehrwirtschaft were prioritised in the allocation of foreign exchange. The government controlled imports as well.
From 1934 a series of bilateral trade deals were struck to meet German import requirements.

Gleichschaltung: Reich Food Estate

Anyone involved in agriculture had to join. It allocated subsidies and imports; regulated wages and prices and organised distribution and foreign labour.
As the 1930s wore on the government controlled the price of food, keeping it below market value so as to control German wages.
The Four Year Plan increased production by: giving grants for new cultivated land; subsidies for technology and arable farmers and reducing fertiliser prices.

Impact of Nazi policy on agriculture

By 1938 food imports were down 20%.
The rural population fell from 21% to 18% as people left the countryside for factories.
Agricultural growth was limited by the labour shortages and by a lack of investment as industry and rearmament were prioritised by the government.
Livestock farmers suffered because of high fodder prices. Subsidies were only for arable farmers.
The Reich Entailed Farm Law: small farms (18-30 acres) could not be sold or mortgaged and had to be handed on to one person.

1The Weimar Republic 1918-1933

1.1Establishment Of The Weimar Republic 1918-1924

1.1.1Post WW1

1.1.2Weimar Constitution

1.1.3Peace Settlement

1.1.4End of Topic Test - Germany Post WW1

1.1.5Economic Issues

1.1.6Economic Issues 2

1.1.7Social Issues

1.1.8End of Topic Test - Economic & Social Issues

1.1.9Extremist Threats

1.1.10Extremist Threats 2

1.1.11End of Topic Test - Extremist Threats

1.1.12Political Instability & The Invasion of the Ruhr

1.1.13Weimar Government by 1924

1.1.14End of Topic Test - Weimar Government by 1924

1.1.15A-A* (AO3/4) - Germany Post WW1

1.2The 'Golden Age' Of The Weimar Republic 1924-1928

1.2.1Economic Developments

1.2.2Industry & Agriculture

1.2.3End of Topic Test - Economic Developments

1.2.4Social Developments

1.2.5Social Developments 2

1.2.6End of Topic Test - Social Developments

1.2.7Political Parties

1.2.8Political Stability

1.2.9End of Topic Test - Weimar Politics

1.2.10Germany's International Position

1.2.11Germany's International Position 2

1.2.12End of Topic Test - International Position

1.2.13A-A* (AO3/4) - The Weimar 'Golden Age'

1.3The Collapse of Democracy 1928-1933

1.3.1The Impact Of The Depression

1.3.2Politics After The Depression

1.3.3The Appeal Of Extremism

1.3.4End of Topic Test - The Depression & Politics

1.3.5'Backstairs Intrigue'

1.3.6'Backstairs Intrigue' 2

1.3.7End of Topic Test - Backstairs Intrigue

1.3.8Political Developments

1.3.9The State by March 1933

1.3.10End of Topic Test - Political Developments

1.3.11A-A* (AO3/4) - The Collapse of Democracy

2Nazi Germany 1933-1945

2.1The Nazi Dictatorship 1933-1939

2.1.1Hitler's Consolidation Of Power

2.1.2The Terror State

2.1.3End of Topic Test - Consolidation of Power

2.1.4Opposition

2.1.5Propaganda

2.1.6A-A* (AO3/4) - Terror State & Propaganda

2.1.7End of Topic Test - Propaganda

2.1.8Economic Policies

2.1.9Economic Policies 2

2.1.10Impact Of Economic Policies

2.1.11Impact Of Economic Policies 2

2.1.12End of Topic Test - Economic Policies

2.1.13Social Policies

2.1.14Social Policies 2

2.1.15Volksgemeinschaft

2.1.16End of Topic Test - Social Policies

2.1.17A-A* (AO3/4) - Economic & Social Policies

2.2The Racial State 1933-1941

2.2.1The Radicalisation Of The State

2.2.2Anti-Semitism

2.2.3Development Of Anti-Semitic Policies

2.2.4Development Of Anti-Semitic Policies 2

2.2.5End of Topic Test - Anti-Semitism

2.2.6Treatment of the Jews in the Early Years of War

2.2.7Deportation & Anti-Semitism Evaluation

2.2.8End of Topic Test - Early Treatment of the Jews

2.2.9A-A* (AO3/4) - The Racial State

2.3The Impact Of War 1939-1945

2.3.1Home Front

2.3.2Impact On Society

2.3.3Impact On Society 2

2.3.4End of Topic Test - Impact of the War

2.3.5War Economy

2.3.6War Economy 2

2.3.7Policies Towards The Jews & Untermenschen

2.3.8A-A* (AO3/4) - Impact of the War

2.3.9End of Topic Test - War Economy

2.3.10Opposition

2.3.11Opposition 2

2.3.12Nazi State by 1945

2.3.13End of Topic Test - Opposition

2.3.14A-A* (AO3/4) - Opposition & The State in 1945

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