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Impact of Nazi Economic Policies (S) - Coggle Diagram
Impact of Nazi Economic Policies (S)
Industrial Elites: 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
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.
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% of the government's investment.
it produced gas for extermination camps and half its workforce was forced labour
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 that consumer interests were not a priority for the Nazis
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
negative impact on consumers
Schacht, some industrialists and many in the military wanted more stress on consumer goods, increasing German exports. Goering disagreed
historical assessments
Mason (1993)
the Nazi party was unable to focus completely on Wehrwirtschaft because of fear of popular unrest
at the horseback meeting on 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
Degree of Recovery by 1939: the Nazis had delivered on many of their promises. However, whilst many benefitted, the undesirable (in the eyes of the Nazis) members of society lost out. Overall, Germany was did not have a fully fledged Wehrwirtschaft by 1939.
1939 key statistics
unemployment was less than 0.2 million
real wages were 7% higher than in 1936
industrial production was up 25% of 1928's rate
military expenditure was 38% of GNP
in 1928 German imports were 14 billion Reichsmarks. In 1938 German imports were 5.4 billion Reichsmarks
in 1928, prices in Germany were 40% higher than they had been in 1913. In 1938, prices were only 5.8% higher than they had been in 1913
government expenditure was up from 18.4 billion Reichsmarks in 1933 to 37.1 billion Reichsmarks in 1938
winners: people who benefitted from Nazi economic policies included:
the unemployed
the armed forces
families (marriage loans, payments for having 2 or more children)
large and heavy industry (IG Farben, Benz, armaments factories)
large, arable farms
overall, people were more optimistic about the economy by 1939 than in 1933
losers: people who lost out from Nazi economic policies included:
300,000 small businesses had gone bankrupt
working class families' consumption of all foodstuffs except rye bread, cheese and potatoes had fallen
livestock farmers faces shortages and economic hardship, unlike arable farmers
private steel companies were squeezed by RWHG
Historical Assessment of Recovery: it is evident that the Nazis did improve the German economy. However, this often came at the expense of the non-Aryan population
historical assessment
Hite and Hinton (2000): "Hitler's priorities meant that the mass of the German people failed to benefit greatly from economic growth"
Overy (1982) "Even by 1937 the economy was only just above the level reached some years before. From 1936 onwards... growth began to slow down"
Noakes (1984): "The cracks in an economy that was operating beyond its capacity were beginning to show"
was Germany ready for war in 1939?
Germany was not prepared for the scale of war that broke out in 1939
there were supply problems as early as December 1939
Germany was unable to replace the aircrafts lost in the Battle of Britain in 1940
German troops were not adequately supplied for the 1941 invasion of the USSR
Germany's economic organisation was wasteful and inefficient
the initial Blitzkrieg in Europe went well, however. Germany then exploited its occupied territories e.g. raw materials, slave labour