Economic changes in Nazi Germany

Lesson aim:To know what the economic changes were and the impact they had.

Learning objectives:

• I will be able to describe Nazi attempts to reduce unemployment. (C/D)

• I should be able to explain Nazi economic policies. (B/C)

• I could also be able to evaluate if Germans were better or worse off in the Nazi state.(A/B)

Key wordsAutarky: self sufficiencyAutobahns: German motorwaysInvisible unemployed: the unemployed not counted in official figuresReal wages: wages adjusted to allow for inflationRearmament: Building up armed forces and weapons

Key words‘New Plan’: introduced by Dr Schacht, President of the ReichsbankFour Year Plan: Goring, a leading Nazi, his plan was intended to prepare Germany for war in 4 years and was linked to autarky.National Labour Service (RAD): compulsory for men aged between 18 and 25 – built autobahns etc.The Labour Front (DAF) replaced trade unions – ran the Beauty of Labour and Strength through joy schemes for workers.Strength through joy: provided workers with activities in their leisure timeBeauty of Labour: main task to improve working conditions.Volkswagen: the people’s car - a savings scheme was introduced to enable people to buy the car.

Getting an overview

The Nazis were determined to reduce unemployment and build up the German armaments industry in readiness for a future war.

Getting an overview

1933: job creation schemes - autobahns1934: many women forced to give up jobs1935: National Labour Service - compulsory1936: Many Jews forced from jobs1937: Rearmament programme begins1938: More than a third of spending on

rearmament1939: German army increased to 1.4 million

REARMAMENT

SELF SUFFICIENCY

(autarky)

Nazi economic policiesSchacht and the New PlanDr Schacht was made Minister of the Economy in 1934. His aims were to:Reduce

unemploymentMake Germany self

sufficient (autarky)He was removed from his job in 1937.

Nazi economic policiesGoring and the Four Year Plan

Goring was a leading Nazi who took over economic policy from 1936.His four plan dealt with preparing Germany for war.The whole economy was geared towards rearmament and autarky.

The Four YearPlan

Propaganda poster encouraging workers to help in the struggle for autarky.It says: ‘Help Hitler build. Buy German goods’.

How did the Nazis reduce unemployment?

Remember Hitler had

promised to sort out unemployment

Unemployment in Germany 1933 -39

0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

Series1 1933 1934 1935 1936 1937 1938 1939

Series2 6,014,000 3,773,000 2,974,000 2,520,000 1,853,000 1,052,000 302,000

1 2 3 4 5 6 7

German autobahn built by the Nazis

How did the Nazis reduce

unemployment?:Job creation

schemes

How did the Nazis reduce unemployment?

National Labour Service (RAD)

From July 1935 it was compulsory for all men 18-25 to serve six months in the RAD.

The men built autobahns and other large scale building projects.

This removed millions from the unemployment figures.

The RAD was not popular.

How did the Nazis reduce unemployment?

Invisible unemployment:

Women and Jews were forced out of jobs

Men aged 18-25 had to join the RAD

Opponents of the Nazis were sent to concentration camps.

NONE OF THESE DID NOT COUNT IN OFFICIAL UNEMPLOYMENT

FIGURES.

How did the Nazis reduce unemployment?

Rearmament:

The four plan meant the economy was geared to preparing for war.

Rearmament created many new jobs as billions were spent on making weapons.

In addition the army forces were built up, this took more the a million off the official unemployment figures.

How did the Nazis reduce unemployment?

The DAF (German Labour Front) was a massive organization formed to control the workers. Everyone had to join.

It put people to work on building the autobahns, hospitals, schools and other public buildings

This poster links the German Labour Front (the DAF) to World War I. The point is that just as soldiers were comrades regardless of their standing in civil life, so too all German workers were comrades in the DAF, regardless of whether they were white or blue collar. This appeared in 1933..

3740 hours

Dr Robert Ley was given the task of filling German people’s spare time.

He was in charge of the German Labour Front (DAF)

Why do you think this was so important?

Dr Robert Ley

The standard of living of German workers

Between 1936 and 1939 wages increased because of longer working hours. So people worked longer for the same money before the Wall St Crash.

Also the cost of living went up in the 1930’s. This meant real wages actually fell.

There were also food shortages.

The standard of living of German workers

Trade unions had been banned by the Nazis.

They were replaced by the German Labour Front (DAF) led by Dr Ley.

It was compulsory for workers to join.

The DAF ran two schemes:Beauty of LabourStrength through Joy

Both were designed to keep the workers motivated and happy.

The standard of living of German workers

The KDF – ‘Strength through joy’ keptworkers happy by providing them

with leisure activities.

Strength through JoyProgrammes included:

1. Cheap walking and skiing holidays

2. Outings to the opera and theatre

3. Adult evening classes

4. Savings schemes to help people buy a car-VW –People’s car.

• What can you learn from this source about Dr Ley’s Strength through Joy programme?

The standard of living of German workers

The Beauty of Labour was another branch of the German Labour Front.

It was designed to improve working conditions and provide better facilities for workers such as canteens and swimming pools.

However, as workers were expected to make these improvements in their spare time the scheme became unpopular with many workers.

The standard of living of German workers

The Volkswagen

This poster from around 1939 advertises the Volkswagen. The text: ‘Save 5 marks a week and you will drive your own car.’

By the start of the war not one car had been bought and no money was refunded.

How well off were other groups?

Farming communities:

Farmers benefitted from a rise in food prices but suffered a shortage of labour and workers left for better jobs in the city.

Small businesses:

Received support from the Nazis. Curbed influence of large department stores.

Big business:

Really benefitted. No threat from trade unions and strikes. Rearmament meant growth and larger profits. Huge government contracts were given.

How successful were Nazi economic policies?

• Debt – had risen under the Nazis• Investment rose to pre depression rates by 1936• Autarky – Germany still imported more than they exported.• German production did increase especially heavy industries

like iron and steel• Jobs created by rearmament programme• Unemployment dropped• In 1938 wages in real terms were not much higher than in

1928• Working conditions may have improved with schemes like

the Beauty of Labour and Strength Through Joy. • Working hours increased from average of 40 to 60 a week

between 1933 and 1944• Industrial accidents rose by 150% between 1933 and 1939• Big business no longer had to worry trade unions and

strikes.

Were German people better or worse off under Nazi rule?

YES NO

MOST GERMANS WERE NOW IN WORK

TRADES UNIONS WERE ABOLISHED – WORKERS HAD FEW RIGHTS

Can you add to the table?

Summary• The Nazis were determined to make Germany

self-sufficient. Schacht began a policy of autarky. This was continued with Goring’s Four Year Plan.

• Unemployment was removed in the years 1933-1939 through rearmament, the Labour Service and ‘invisible unemployment’.

• In some respects workers were better off under the Nazis because of Beauty of Labour and Strength through Joy.

• In some respects they were worse off because of the banning of Trades Unions and the Volkswagen swindle.

Your task

• Identify the key aims of Nazi economic policy.• What evidence indicates that Nazi economic

policy to reduce unemployment was successful? What evidence indicates the opposite?

• What did Economics Minister Schacht ‘New Plan’ involve?

• What were the key features of the Goering’s Four-Year Plan?

Useful links• http://www.historygcse.org/ • http://www.schoolhistory.co.uk/lessons/germany/economy.html interactive

diagram• http://www.johndclare.net/Nazi_Germany3_Gunsnotbutter.html• http://www.schoolhistory.co.uk/gcselinks/indepth/germany/resources/unempl

oyment.pdf• http://www.schoolhistory.co.uk/gcselinks/indepth/germany/resources/Autarky

.pdf