Economic developments
- Nazis were late in developing a coherent economic programme
o Hitler had little interest for economics
- The 25 point programme contained economic points however, these were largely just
to obtain the votes of discontented workers and lower middle classes
- By 1932, when it became likely that the Nazis were going to gain power, a more
coherent programme of economic recovery and development was needed to tackle
the issues of the Depression and gain support of industrialists and businesses
Economic aims
- Immediate priority was to begin expansion of public work creation schemes
o Were directed by the state and paid for by a policy of deficit spending, to solve
unemployment and revive the economy
- Two longer term priorities focused on self-sufficiency and obtaining living space
- Further goal focused on the concept of a Wehrwirtschaf (defence economy)
o One of the conclusions reached about Gr’s defeat in WWI was it had failed to
organise the economy effectively for total war
This concept became main goal of Nazi economy policy
The peace time economy
- By time of Hitler’s appointment, the number out of work was 8.5 million
o Those in work saw earning fall
- Hitler believed that the solution was a matter of will
o Gr’s would have to pull together as a national community, abandoning their
class differences and become one people dedicated to the needs of the state
The Volk were expected to work hard and make personal sacrifices for
the greater good of the nation
- The state of the Gr economy was improved by the recovery of world trade from about
1932
The Battle for Work:
- One of many propaganda campaigns in first years of regime
- The Law to Reduce Unemployment in June 1933 set in motion perhaps the most
effective assault on unemployment in the industrialised world
- Money was poured into public work schemes
- There was investment in autobahns, house building, railroads and forest planting
- Unemployment was reduced further by the creation of the Reich Labour Service and
in 1935 by conscription
- Between 1932 and 38 government spending rose from 5 billion to 30 billion marks
o By 1936 the number out of work was just 1 million
By 1938 there was a labour shortage of roughly 400,000
- However, these figures can be challenged
o Women weren’t included in the stats and post 1935, neither were Jews
o The ‘work shy’ – vagrants, persistent unemployed and petty criminals – were
sent to concentration camps for ‘re-education’
The New Plan: