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Economic recovery of 1933-36 Nazi Germany - Coggle Diagram
Economic recovery of 1933-36 Nazi Germany
3 key phases
1: 1933-36 first 4 year plan-reduce unemployment
2: 1936-39 second 4 year plan-rearm ASAP
3: 1939-45 wartime economy-focused exclusively on winning war
Recovery + New Plan
overseen by Schact-President of Reichsbank in March 1933 + Minister of Economics in Aug 1934
initially Schact had policy of deficit financing-spending money on public works to create jobs + controlling prices + wages
Jan 1933 Ger starting to come out of depression
by end of 1935 Ger had trade surplus, unemployment fallen + industrial production increased by 49.5% since 1933
Reich Food Estate in Sept 1933-took control of overall planning + organisation of agriculture
Reich Entailed Farm Law enhance security of peasant ownership of land
"Battle for Production" 1934-35 increase production of grain-not successful due to lack of machinery + labour + poor harvests
1934 Schact got trade agreements with countries in S America + SE EU-preventing Ger running up huge foreign currency deficit + can procure essential raw materials-paid for in Reichmarks
Mefo bills-payment for goods-exchanged for cash or held for 5 years, earning 4% interest a year
Schacht failed to convince Hitler necessity of scaling down rearmament-resigned Nov 1937 + 2nd 4 year plan by Goring introduced
The Law to Reduce Unemployment June 1933-buid autobahns + 100s of public buildings-"Battle for Work" extended by govs lending money to private companies so they could create jobs-5 billion marks by 1935
unemployment figures 6m 1932-100,000
Rearmament 1936-39
Secret Memo by Hitler-"programme for a final provision of our vital needs"-planning for war
late 1930s Ger 2nd only to USA as largest producer of iron + steel
Goring developed close relationship with massive chemicals firm I.G. Farben-largest private business in Ger-made synthetic chemicals, rubber, petrol, oil + texiles
4 Year Plan to help autarky
had to import food + essentials like oil
1937-39 money spent on military rose to 10 bil + 1938-39 17 bil RM
1938 trade deficit 432 mil RM
1936 steel produ 19,216 thousand tons, 1938 22,656 thousand tons
lack of coordination between overlapping ministries-Economics, 4 year plan, Finance, Armed forces
largest industrial enterprise in EU
didn't meet targets + autarky wasn't a success