Summary
The Nazi economic system from 1933 to 1939 focused on recovery, autarky, and preparation for war, transforming Germany's economy through innovative policies and propaganda.
- Mass Unemployment — Over 6 million Germans were unemployed in 1933, threatening Nazi stability.
Example: Unemployment was reduced to under 1 million by 1937 through public works and military service. - Deficit Financing — Government spent more than it earned to stimulate growth.
Example: Funded public works and job creation schemes. - Mefo Bills — Credit notes used to disguise government spending.
Example: Businesses received Mefo bills instead of cash, delaying payment. - Autobahn Construction — Massive motorway building programme.
Example: Created thousands of jobs and improved infrastructure. - Reich Labour Service (RAD) — Compulsory labour service for young men.
Example: Provided minimal wages for manual work, instilling Nazi values. - Reich Food Estate — Centralised control of agricultural production.
Example: Farmers compelled to join with strict production regulations. - Schacht’s New Plan — Addressed foreign currency shortages through import controls.
Example: Barter deals with other countries to exchange goods without currency. - Goering’s Four Year Plan — Prepared Germany for war within four years.
Example: Prioritised rearmament and aimed for maximum autarky. - German Labour Front (DAF) — Replaced trade unions, controlling workers.
Example: Workers lost rights to strike and negotiate wages.
Exam Tips
Key Definitions to Remember
- Mass Unemployment
- Deficit Financing
- Mefo Bills
- Autobahn Construction
- Reich Labour Service (RAD)
- Reich Food Estate
- Schacht’s New Plan
- Goering’s Four Year Plan
- German Labour Front (DAF)
Common Confusions
- Believing unemployment was solely reduced by job creation, ignoring military service and statistical manipulation.
- Assuming the Four Year Plan was purely economic rather than politically driven.
Typical Exam Questions
- How did the Nazis reduce unemployment? Through public works, military service, and statistical manipulation.
- What was the purpose of the Reich Food Estate? To control agricultural production and support Nazi ideology.
- Why was the Four Year Plan significant? It marked a shift towards a war economy prioritizing rearmament.
What Examiners Usually Test
- Understanding of how Nazi policies transformed the economy.
- The impact of Nazi economic policies on German society.
- The role of propaganda in promoting Nazi economic achievements.