The Nazi Economic System: Recovery, Autarky and the Road to War

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.