What are the features of a successful economy?

1. What are the features of a successful economy?

2. The Nazi economy Recovery (1933-6) Rearmament (1936-41) Total War (1942-5) Schact Policies Problems Goering Policies Speer Problems

3. How successful was the economy 1933-39? Very Hardly Unemployment reduced from 6m to 200k

4. Recovery, 1933-36 • Public works • Tax concessions and grants • Groups pressurised • RAD • Conscription • Mefo Bills

5. Public Works Huge government funding for Public Works These included autobahns, homes, schools, hospitals etc. Some of this begun in 1932 Quickly reduced unemployment – use of manual labour instead of machines Great propaganda opportunities Provided orders for private companies Low wages Increasing government debt

6. Incentives: Taxes and Grants Newly married couples paid less taxes Cash and tax bonuses for mothers Companies given subsidies for hiring more workers

7. Groups Women removed from public sector employment and encouraged to be mothers, wives etc. Jews removed from public service jobs (doctors, lawyers etc) by Nuremburg laws of 1935 Trades Unions banned – prevents strikes and workers’ demands German Labour Front – RAD Removed young men from unemployment (400k in 1934) for public works Conscription from 1935 took all men 18-25 for two years

8. Finance Balance of Trade Imports to be approved by the government Trade agreements with Balkan states (include barter rather than cash) Mefo Bills A credit note issued by the government Given to companies in exchange for goods/services Repaid in cash, plus interest, after five years following tax income Increased debt Disguised military expenditure Hjalmar Schacht with Hitler

9. Nazi Economic Policies 1933-36 Aims Policies Success?