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Society and Economy in Nazi Germany. Part three The Nazi economy to 1936. Aims of the lesson. By the end of this lesson you will Understand how and the economy was so important to Nazi success Evaluate the effectiveness of Nazi economic policies up to 1936
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Society and Economy in Nazi Germany Part three The Nazi economy to 1936
Aims of the lesson By the end of this lesson you will • Understand how and the economy was so important to Nazi success • Evaluate the effectiveness of Nazi economic policies up to 1936 • Evaluate the role that Hjalmar Schacht played in the reviving of the German economy between 1933 and 1936
The German economy in 1933 • German economy still badly affected by the depression but unemployment was falling by the end of 1932 • Nazis promised to end the depression and this was their number one priority • Jobs and bread • Put an economist – Dr Hjarmar Schacht in charge of the German economy
What did the Nazis do? • Schacht introduced the “New Plan” for the Nazi economy from 1934 to 1937. Three aims • Reduce unemployment • Build up armaments • Self-sufficiency (Autarky) • Six million out of work in 1933 • Realised that they needed to sort this problem out quickly
The National Labour Service • Led by Robert Ley • All young men between 18 and 25 had to join • Did various jobs like digging ditches and planting forests • Lived in camps and wore uniforms • Given pocket money instead of wages – cheap labour
German Labour Front (1) • Took the unemployed to do public works projects • Hospitals • Schools • Autobahn • Sports stadiums • Government buildings • Gave work to thousands of people
German Labour Front (2) • May 1933 – Nazis banned unions and all workers had to belong to the DAF • Strikes made illegal • No limit on hours • Not allowed to leave a job without permission • Strength Through Joy – a part of the DAF. Aimed to organise leisure activities for the workers
Strength Through Joy • Organised cheap foreign and domestic holidays • Helped to get people a Volkswagen car on the cheap using hire purchase • In reality few workers could afford a car and the scheme was a failure • Organised spare time activities for workers
Rearmament • 1935 – Treaty of Versailles was abandoned • Rebuilding the army vital to reducing unemployment • Conscription reintroduced • 1 000 000 in army by 1938 • To support these troops you needed to increase employment in the armaments industry – virtuous circle
Other factors in reducing unemployment • Women forced out of jobs in the civil service • Jews dismissed from jobs • People in concentration camps not counted as unemployed • By 1939 there was a shortage of labour • The Nazis had a lot of success in reducing unemployment
How important was Dr Schacht? • An excellent professional economist who made the most of Germanys resources in the early years of Nazi rule • Not a Nazi and never trusted by Hitler • Fell out of favour in 1936 and Hitler decided to get rid of him and place the economy in the hands of Goering • The economy did not perform as well once he was gone