How did the Nazis tackle the economic crisis

1
? Starter
During the Third Reich, German scientists came up
with a range of chemically produced products that
replicated naturally occurring resources and
commodities. They were known as Ersatz products
and included the following Kriesgsrhot or War
bread made from a mixture of rye, wheat and
potatoes cakes made from ground up clover
Kaffe-ersatz made from coal-tar a substance
normally used in soaps when coal-tar became
scarce Kaffee-ersatz-ersatz was produced made
from roasted acorns (food normally fed to pigs)
when acorns were difficult to come by carrots and
yellow turnips were used instead the rice lamb
chop was invented, with a lump of wood to serve
as the bone shoes were made from wood instead of
leather woollen jumpers were made from nettles
and coats were made from recycled paper.
Adapted from The Iron Ration Three
Years in Warring Central Europe
Why did German scientists and manufacturers go to
such trouble to produce Ersatz products?
2
How well did the Nazis manage the German economy?
3
? Your task

• List the aims of Nazi economic policy
• What evidence is there that Nazi economic policy
  to reduce unemployment was successful?
• How did the economics minister, Schacht, help the
  economy?
• What were the key features of the Four-Year Plan?

4
Aims

• Reduce unemployment (1933, 6 million)
• Rearmament
• Self-sufficiency (Autarky)

5
Unemployment

• By 1939 unemployment had fallen to less than
  0.5milion
• After 1932, reparations ended
• Autobahns
• Public building projects, e.g. Olympic Stadium,
  Berlin
• Reich Labour Service (RAD)
• Government investment schemes, e.g. Volkswagen
• Conscription 1m in army by 1939

6
The New Plan, 1934-6

• Dr Hjalmar Schacht
• President of Reichsbank
• Minister of the Economy
• Imports limited
• Trade agreements
• Unemployment reduced
• Mefo bills

7
Four-Year Plan, 1936-9

• Hermann Goering
• WWI fighter pilot
• Head of German airforce (Luftwaffe)
• Self-sufficiency
• Synthetic raw materials (ersatz)
• Reduce imports
• Tighten control on wages

8
? Class discussion

• Did the Nazis achieve their economic objectives?
• Was Schacht or Goering more successful?
• What were the potential weaknesses in the German
  economy?

9
? Extension activity

• In pairs take on the role of either Schacht of
  Goering and have a head-to-head debate to decide
  who made a more significant contribution to the
  German economy under the Nazis. Present your role
  plays to the class.