3.2.1

Attempting Economic Recovery

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Economic Policies and Recovery Between 1933 and 1936

Between 1933 and 1936, the main aim for the Nazis was to achieve economic recovery.

Illustrative background for Economic aimsIllustrative background for Economic aims ?? "content

Economic aims

  • The Nazi's economic aims included: Economic recovery was the top priority
    • Cut unemployment.
    • Increase demand.
    • Avoid inflation.
    • Reduce Germany’s balance of trade deficit (Germany was importing more than it was exporting and so was paying out more currency than it was bringing in).
Illustrative background for Key economic indicators Illustrative background for Key economic indicators ?? "content

Key economic indicators

  • Industrial production rose from roughly 66% of the 1928 total to 107%.
  • Unemployment fell from 5.6 million to 1.6 million. Not all of this was due to job creation. Some groups were removed from the statistics.
  • Real wages rose by about 7.5%.
  • Public expenditure rose from 18.4 billion reichsmarks to 23.6 billion reichsmarks. The greatest increase was in rearmament spending which was up over five times.
  • Investment in the economy was up. By far the largest increase was rearmament.
Illustrative background for Increasing demandIllustrative background for Increasing demand ?? "content

Increasing demand

  • State intervention was used to create jobs and stimulate consumer demand.
  • Public works created jobs. Hitler extended the existing programmes of motorway and house building.
  • There were subsidies for private sector firms hiring workers.
  • Tax concessions and government grants, e.g. for newly-weds, encouraged consumer spending.
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Reducing unemployment

  • Job creation in public works and incentives for the private sector for hiring labour.
  • Some married women and Jews in the public sector were made to leave work.
  • The armed forces grew form 100,000 in 1933 to 1,400,000 in 1939
  • Invisible unemployment:
    • Groups such as married women and young men in the RAD (Youth Service) were not included in unemployment statistics.
  • From 1935 conscription took men aged 18-25 out of the unemployment statistics for two years.
Illustrative background for Economic methodsIllustrative background for Economic methods ?? "content

Economic methods

  • Deficit financing:
    • The Nazis used loans to create jobs and stimulate demand. As the economy grew, tax revenues increased, borrowing reduced and loans were repaid.
  • They avoided inflation by setting wage and price controls.
  • Restored confidence to encourage spending and investment. Independent trades unions were banned and Hjalmar Schacht’s appointment reassured big businesses.
  • The New Plan 1934.
Illustrative background for The New Plan 1934Illustrative background for The New Plan 1934 ?? "content

The New Plan 1934

  • As demand grew, imports were sucked in to meet it. To pay for imports, German gold and foreign currency reserves were being used up.
  • The New Plan meant imports had to be approved by the government before importers could buy foreign currency.
  • The government prioritised producers of armaments and raw materials for firms.
  • The New Plan also established bilateral treaties between Germany and Balkan countries. The Balkan states were an important source of raw materials.

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1Political & Governmental Change, 1918-1989

1.1Creation & Collapse of Weimar, 1918-1932

1.1.1Creation of a Republic

1.1.2Strengths & Weaknesses of Weimar Constitution

1.1.3Overcoming Challenges to the Constitution

1.1.4The Great Depression

1.1.5The Collapse of Democracy

1.1.6The Collapse of Democracy 2

1.1.7Hitler Becomes Chancellor

1.2Nazi Dictatorship, 1933-1945

1.2.1Establishing a Dictatorship

1.2.2Consolidating Power

1.2.3Nature of Government

1.2.4Government in Wartime

1.2.5Top Grade AO2/3 - Political & Governmental Change

1.3Return to Democratic Government, 1945-1989

1.3.1Creation of the FRG, 1945-1949

1.3.2Consolidation Under Adenauer

1.3.3Consolidation Under Erhard

1.3.4Maintaining Stability Under Brandt

1.3.5Maintaining Stability Under Schmidt

1.3.6Maintaining Stability Under Kohl

1.3.7Top Grade AO2/3 - Return to Democratic Government

2Opposition, Control & Consent 1918-1989

2.1Opposition to Government, 1918-1989

2.1.1Impact of Versailles

2.1.2Political Extremism & Crises, 1918-1932

2.1.3Opposition & Dissent in Nazi Germany, 1933-1945

2.1.4Political Dissent from the Left, 1949-1989

2.1.5Political Dissent from the Right, 1949-1989

2.1.6Top Grade AO2/3 - Opposition to Government 1918-89

2.2Controlling the People, 1918-1989

2.2.1Attempts to Control Extremism

2.2.2Repression, 1933-1945

2.2.3Censorship & Propaganda, 1933-1945

2.2.4De-Nazification Policies of Western Allies, 1945

2.2.5Constitutional & Legal Response to Extremism, 1949

2.3Popular Support, 1918-1989

2.3.1The Nature of Support for the Weimar Government

2.3.2Support for the Nazi Regime

2.3.3The Nature of Support for Democracy, 1945-1989

2.3.4Top Grade AO2/3 - Controlling the People

3Economic Developments & Policies, 1918-1989

3.1Reacting to Economic Challenges, 1918-1932

3.1.1Economic Crises & Government Response, 1918-1923

3.1.2Economic Loans, 1924-1928

3.1.3Policies for Recovery, 1924-1929

3.1.4The Great Depression

3.1.5Change in Living Standards

3.1.6Top Grade AO2/3 - Reacting to Economic Challenges

3.2Controlling the Economy, 1933-1945

3.2.1Attempting Economic Recovery

3.2.2Creating a Command Economy

3.2.3Change in Living Standards

3.2.4Impact of War

3.2.5Impact of War 2

3.2.6Top Grade AO2/3 - Controlling the Economy

3.3Creating the Social Market Economy, 1945-1989

3.3.1Economic Recovery, 1945-1955

3.3.2The Economic Miracle, 1955-1966

3.3.3Surviving the Recession, 1960-1969

3.3.4The Oil Crisis

3.3.5Integration into the European Economy

3.3.6Change in Living Standards

3.3.7Top Grade AO2/3 - Creating Social Market Economy

4Aspects of Life, 1918-1989

4.1Attitudes Towards Women, 1918-1989

4.1.1Role & Status of Women in the Weimar Republic

4.1.2Impact of Kinder, Küche, Kirche

4.1.3Impact of WW2 on Women

4.1.4Role & Status of Women in the FRG

4.1.5Top Grade AO2/3 - Attitudes Towards Women

4.2Education & Cultural Developments, 1918-1989

4.2.1Education in Weimar

4.2.2Cultural Experimentation in Weimar

4.2.3Education Under the Nazis

4.2.4Nazi Culture

4.2.5Education in the FRG

4.2.6Generational Conflict

4.2.7Top Grade AO2/3 - Education & Cultural Development

4.3Position of Ethnic Minorities, 19189-1989

4.3.1Ethnic Minorities in the Weimar Republic

4.3.2Nazi Racial Policies, 1933-1939

4.3.3Nazi Racial Policies During the War

4.3.4Ethnic Minorities in the FRG

4.3.5Top Grade AO2/3 - Position of Ethnic Minorities

5Historical Interpretations

5.1Influence of German History

5.1.1Influence of German History

5.2Hitler & Foreign Policy

5.2.1Hitler & Foreign Policy

5.3Contribution of Other Nations to WW2

5.3.1Weak Nations

5.3.2Appeasement

5.3.3The Rise of Fascism

5.4Reasons for Invading Poland

5.4.1Reasons for Invading Poland

5.4.2Top Grade AO2/3 - Historical Interpretation

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Top Grade AO2/3 - Reacting to Economic Challenges

Creating a Command Economy