Economic Policies in Germany
History: KS3, topic 18.2.6
Economic Policy
Hjalmar Schact was the first minister of the economy for the Nazis between 1934 and 1937. Hitler wanted Germany to build up its military strength in a few years. But Schacht did not think it was possible. He lost his job in 1937.
The 'Four Year Plan'
- Although Hjalmar Schact was credited with solving the Great Depression for Germany, he lost his job in 1937.
- Schacht did not believe that Germany could grow its military as quickly as Hitler wanted.
- Hermann Goering created the Four-Year Plan in 1936 to prepare Germany for war.
- Its two aims were rearmament (building up supply of military weapons) and self-sufficiency (needing no support).
Rearmament (building up supply of military weapons)
- This was a key aim for Hitler because he wanted to overturn the Treaty of Versailles and make Germany strong again.
- The plan was for the expanded armed forces to be fully equipped with weapons and vehicles.
- Rearmament helped big manufacturing businesses.
- Rearmament was responsible for most of Germany’s economic growth from 1933 to 1939.
Self-sufficiency (autarky)
- Self-sufficiency (autarky) was less successful than rearmament.
- Goering wanted Germany to create everything in their own economy, not relying on any imports (bringing products in from other countries).
- The Nazis tried to control the number of imported goods.
- But the number of imports increased over the period as people became wealthier.
The path to self-sufficiency (autarky)
- To help increase food production, farmers were given subsidies (money from the state) and labour from the RAD.
- But by World War Two, Germany was still importing 20% of its food.
- To increase raw materials, scientists created 'ersatz' substitutes.
- These were not very successful and by World War Two Germany was still importing 1/3 of its raw materials.
The war economy
- Working hours increased from 1936 onwards. If a worker complained about working conditions, they would be ‘blacklisted’. This means they would struggle to find employment.
- When World War 2 began in 1939, a quarter of Germans worked in war industry (weapons, chemicals, agriculture). This reached 3 quarters by 1941.
- Prisoners of war and slaves were needed to increase Germany's output as their economy wasn't ready in 1939.
- Food and clothing rationing started in 1939 and rations gradually fell during the war.
Test yourself on Economic Policies in Germany
Who was the first minister of the economy for the Nazis between 1934 and 1937?
What were the two aims of the Four-Year Plan?
Which of the following about the policy of self-sufficiency are correct?
Why did the number of imports increase between 1933 and 1939?