Handout � Hitler�s Economic Policy by 6GRR8e58


									                    Hitler’s Economic Policy
           Economic Situation                                             Nazi Economic Policies
1. Unemployment over 6 million in 1932                        1. On 2nd May, 1933, Adolf Hitler ordered the Sturm
2. Germany relied heavily on overseas trade for vital         Abteilung (SA) to arrest Germany's trade union leaders.
raw materials and food supplies.                              Trade unions replaced by the Nazi Labour Front (DAF).
3. German economy relied heavily on American                  2. A pay freeze was introduced in 1933 and this was
investment which stopped after the Wall Street Crash          enforced by the Labour Front.
4. Prior to the Wall Street Crash, Hitler predicted           3. Wages were now decided by the Labour Front and
economic disaster                                             compulsory deductions made for income tax, and for
5. Some people thought he might be able to solve              its Strength through Joy programme.
the financial crisis.                                         4. The Labour Front issued work-books that recorded
6. Hitler wanted to make Germany self-sufficient              the worker's employment record and no one could be
(autarky)                                                     employed without one.
7. In the 1933 Election Hitler promised to eliminate          5. The government banned the introduction of some
unemployment                                                  labour-saving machinery.
8. German economy beginning to recover as Hitler              6. Employers had to get government permission before
gained power.                                                 reducing their labour force.

                     Economic Expansion                                           Strength through Joy
1. The Nazi government gave work contracts to those companies that                1. Encourage workers to work as
relied on manual labour rather than machines – the autobahn                       hard as they could for Germany
(motorway) programme.                                                             and the Nazis.
2. Investment in military re-armament. Thousands of Germans worked in             2. Offered cheap holidays and a
factories producing weapons.                                                      car to win the support.
3. Conscription into the German armed forces reduced the numbers of               3. Nazis built sports facilities, paid
unemployed.                                                                       for theatre visits and financially
4. Hitler also encouraged the mass production of radios. Used to reduce           supported travelling cabaret
unemployment and for Nazi propaganda.                                             groups.
5. Youth unemployment was dealt with by the forming of the Voluntary              4. Although the German worker
Labour Service (VLS) and the Voluntary Youth Service (VYS), these                 paid for these benefits through
planted forests, repaired river banks and helped reclaim wasteland.               compulsory deductions, the image
6. Women in certain professions such as doctors and civil servants were           of people being given holidays and
dismissed, while other married women were given 1000 marks to stay at             subsidized entertainment was of
home.                                                                             great propaganda value to the
7. In the summer of 1935 Adolf Hitler announced the introduction of               Nazi government.
Labour Service (RAD). All men aged between the ages of nineteen and               5. Leisure activities highly
twenty-five had work for the government for six months. Later women               organized with a wide range of
were also included in the scheme and worked as teachers and domestic              events and activities made
servants etc.                                                                     available.

                                    Results of Economic Policies
1. Unemployment had fallen from 6 million in 1933 to 300,000 by 1939
2. Industrial production in 1939 was above the figure for Weimar Germany before the 1929 Wall Street Crash.
3. By 1939, Germany still imported 33% of its required raw materials
4. Government income had been 10 billion Reichsmarks in 1928. In 1939, it was 15 billion. However, government
spending had increased from 12 billion Reichsmarks in 1928 to over 30 billion in 1939.
5. From 1933 to 1939, the Nazi government always spent more than it earned so that by 1939, government debt
stood at over 40 billion Resichsmarks.
6. Annual food consumption in 1937 had fallen for a wide range of products compared to 1927 figures.
7. Real earnings in 1938 were all but the same as the 1928 figure. (Real earnings are wages adjusted to allow for


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