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KT3 Economic Policies and Development 1918-89 - Coggle Diagram

- - - - This restored faith in the German currency. The permanent Reichsmark was introduced in 1924
  - - - In Germany industrial production fell (by the end of 1932 it was half its 1928 level).
      - Unemployment rose from 1.3m in 1928 to 5.6m in 1932. Wages fell by 20-30 percent.
- - - - Schacht drew up the ‘New Plan’ to trade in goods (such as with Hungary). The first Four-Year Plan was announced in Jan 1933 to achieve autarky.
    - - In May 1933 it was announced that there was only one union, the German Labour Front (DAF). This allowed big businesses to exploit the workers more.
  - - - Hermann Goering was in charge of the plan
      - The Office of the Four-Year Plan had six departments: raw material production; agricultural production; distribution; labour; prices; and foreign exchange matters.
      - Raw materials that could not be produced were replaced with German manufactured synthetic replacements (such as ‘Buna’ instead of rubber).
        
        Results could be slow as new factories might need to be built.
    - - Hitler did not want the state to become unpopular and had promised ‘Work and Bread’ in their election campaign. The Nazis tried to ‘re-educate’ people to consume less, especially meat and fat.
  - - - In October 1934, the Nazis mounted the T4 campaign to get rid of disabled children. Over 70,000 died under this programme.
      - Families that were ‘asocial’ (failed to pay rent or keep a job, or were alcoholic) were sent on ‘re-education’ schemes
    - - Unemployment dropped and real wages rose. But wages were regulated, so that a worker had to work overtime in reality.
      - The ‘Strength through Joy’ programme provided extras such as medical care, loans, the chance to save for a Volkswagen.
    - - It ran Mother and Child programmes, provided crèches and kindergartens, provided housing, and ran a yearly Winter Aid programme, distributing food and clothing parcels and running soup kitchens.
      - RM2 million had been donated a day after its launch, but it was hard to refuse to contribute. Many people viewed the NSV officials and volunteers as Nazi ‘snoopers’.
  - - - In February 1940, Hitler made Fritz Todt minister of armaments and munitions. But he lacked the means to reorganise and centralise production.
    - - Hitler’s decree in April 1942 set up the Central Planning Board to distribute raw materials, and decide on whether to build or extend a factory. Production in 1944 was almost three times that of 1940.
      - As the nature of the war changed, different equipment had to be produced.
- - - - The Deutschmark was introduced, rationing ended and wages were fixed
      - Non-essential items began to go on sale. A tax on assets was agreed in 1952, to compensate those who had lost everything.
      - Unemployment only began to fall from 1950
      - Erhard’s gamble had been resisted but he had just enough support to remove wage restrictions and encourage trade unions to be set up.
  - - - The Korean war sparked a need for war supplies.
      - As other countries switched to war production, Germany’s industrial goods were in demand.
    - - They produced high-quality goods and kept their prices competitively low. The reputation of German goods improved and exports grew
      - The influx of refugees created a large pool of ‘guest workers’, keeping wages low. Added to this was 3.6 million more workers who came from the FRG from the GDR in the 1950s, many of them skilled and highly educated. Most were employed on short-term fixed contracts.
  - - - Trade reduced, unemployment increased and government spending was rising, especially on social welfare (by DM69.2 million between 1965 and 1970).
      - The new economics minister, Karl Schiller, increased government planning, intervention and control. He reintroduced cartels.
        
        The 1967 Stabilisation Law allowed for further government intervention on a regional level in times of economic crisis. His policies failed and he was replaced in 1972
    - - In 1973 the Fourth Arab-Israeli War led to prices rising, creating an economic crisis. Guest workers’ contracts were not renewed.
  - - - He was especially concerned to build up a close working relationship with France. He was more concerned about establishing trade and other agreements with Europe than unification with the GDR.
  - - - by 1963, 63 percent of homes had a fridge and 42 percent had a TV
    - - People in 1980 lived, on average, 12 years longer than those in 1950