3.2.3

Change in Living Standards

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Changing Living Standards for Consumers Under the Nazis

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.

Changing Living Standards for Workers Under the Nazis

It is difficult to evaluate the actual change in living standards for workers. Whilst they benefited from employment under the Nazis, real wages fell.

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Job creation schemes

  • Workers benefited from job creation schemes.
  • This reduced unemployment in Germany.
  • We must remember greater employment for Aryan men was accompanied by the ‘invisible unemployment’ of non-Aryans and women.
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DAF

  • 6 May 1933: All independent trade unions were banned. DAF now represented all workers and employers in one national organisation. Led by Dr. Robert Ley.
    • Membership rose from 5 million in 1933 to 22 million in 1939.
    • 1936: DAF provided 2.5 million vocational training courses.
    • 1938: Workers could put aside RM5 a week towards a VW car. In 1939 car manufacturing was switched to military needs. No cars were ever received.
    • DAF’s aims: for workers and employers to work together to achieve Volksgemeinschaft.
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KdF and SdA

  • KdF (Strength Through Joy): created by DAF in 1933 to improve workers’ fitness and morale through subsidised leisure activities, including holidays.
  • In 1938 over 10.3 million holidays provided by KdF. Sports were the most popular activity – the Volksgemeinshcaft must be fit and healthy.
  • SdA (Beauty of Work): its role was to improve working conditions, e.g. better lighting, heating, proper work clothes, lockers, improved hygiene, canteens.
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RAD

  • Reich Labour Service: from June 1935 every male aged 18-25 must serve six months working for the community, usually on farms or public works.
  • RAD was regimented, often time was spent away from home in barracks.
  • In 1939 RAD was extended to women.
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Worker's pay and conditions

  • Trustees of Labour were established in 1933 under the Ministry of Labour. They set wages, holidays and regulated working conditions.
  • Councils of Trust were established in January 1934. They replaced the workers’ councils of the Weimar era and were subordinate to the Trustees of Labour.
  • Councils of Trust discussed workers’ safety and welfare, workplace productivity.
  • Grunberger (1971): -Real hourly wages rose only 1% under the Nazis.

Changing Living Standards for Farmers Under the Nazis

The Nazis focussed on developing agriculture. Whilst living standards rose between 1933 and 1936, it stagnated from 1937 onwards.

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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.
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Impact of Nazi policy on agriculture

  • By 1938 food imports were down 20%.
  • 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.
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Change in living standards

  • Initially, farmers benefited from Nazi economic policies.
  • Between 1933 and 1936, the average income for a farmer rose by 41%.
  • However, wages for rural workers were less than wages for urban workers.
  • The rural population fell from 21% to 18% as people left the countryside for factories.

Jump to other topics

1Political & Governmental Change, 1918-1989

2Opposition, Control & Consent 1918-1989

3Economic Developments & Policies, 1918-1989

4Aspects of Life, 1918-1989

5Historical Interpretations

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