Policies for the workers; Policies for

the Mittelstand

One of the reasons for the Nazis achieving power was Germany’s financial woes.

As such, the Nazis focused on rebuilding the economy.

The Nazis introduced policies which improved working

conditions, created jobs and also helped business

owners, winning support for the regime.

Business owners

The Nazis had strong links with owners of big business. Some Nazi funding came from the

owners of prominent German companies.

Many of these businesses then gained from the Nazis’ policies,

including banning trade unions and also rearmament.

Many of these businesses had feared Communisn so were

pleased with a Nazi government that did not

threaten private ownership.

Companies such as Daimler-Benz and Volkswagen

benefitted from Nazi plans for rearmament, and chemical

company IG Farben grew too.

However some businesses did lose out due to the Nazis. The Nazis set up their own steel

companies (to meet military goals), and these took priority over established companies.

Businesses that complained about Nazi actions faced

threats of being accused of national sabotage.

The Mittelstand

The Mittelstand refers to small and medium sized companies

in Germany.

Many of the owners of these businesses were part of the

middle class that had lost out during the days of

hyperinflation, including shop owners and farmers.

Germany’s growing economy – meaning a big fall in

unemployment – helped these groups. Germans had more

money to spend, and this led to increased business for many.

The Nazis also banned new department stores and placed a tax on big retail outlets to help

the owners of small shops.

In addition many members of this group gained from Jewish

persecution.

When Jews were banned from owning businesses it reduced the competition that many of these companies faced. Some

Nazi supporters were also given a share of the

confiscated Jewish property.

In May 1933 the Nazis also introduced the Entailed Farm Law, which meant farms could not be sold or mortgaged, tying

ownership to one family.

Although meant to provide protection to small farmers, it

made it difficult for them to get loans as they could not use

their farm as security.

The workers

As the majority of German society, the Nazis needed the

support of workers to achieve and then maintain power.

In addition the Nazis were aiming to build a

Volksgemeinschaft, so had to ensure that workers gained

from a new Germany.

Trade unions were banned so all workers had to join the

German Labour Front (DAF).

Workers benefitted from the Nazis’ actions in two main

ways:

• Levels of unemployment fell significantly

• Policies were introduced to benefit workers

The fall in unemployment was significant in Nazi Germany. It fell from 6 million at the start of the 1930s to only 1 million

by 1937.

This happened because of Nazi investment in public works, the military (including rebuilding

the army) and also social programmes for young people.

However unemployment figures do not tell the full story.

They do not count Jews and women that were out of work. Indeed both these groups were

dismissed from their jobs to make way for men.

From 1934, married women could not work as doctors, civil servants or judges (from 1936).

The Nazis also introduced new workplace organisations

designed to enhance workers’ quality of life.

As part of the German Labour Front, Kraft durche Freude

(KdF, or Strength through Joy) introduced leisure

activities such as subsidised holidays, sport and theatre

and cinema visits.

Schonheit der Arbeit (Beauty of Work) aimed to improve

workplace conditions, again to enhance working and please

the workers.

The Trustees of Labour was set up set wages and other

working conditions. Workers in Nazi Germany paid a higher tax

rate than under Weimar.

Historians’ views

Thomas Childers: The economic strife of the 1920s and early 1930s saw the Mittelstand give up their traditional support for centre and right-wing parties, in favour of the radical Nazi Party.

Tim Mason: Although the Nazis aimed to create a People’s Community by integrating all social classes, they ultimately failed to fully integrate workers into their regime, or stop class division.

David Crew: The onset of full employment gave workers the strength to negotiate improved conditions with their employers but only on an individual basis, which perpetuated class divisions.