Nazi Economy

1
Was The Economy Any Better Under The Nazis?
2
Unemployment Under Hitler
How did unemployment fare under Hitler? How do
you think he managed to make such an impact?
3
How Did the Nazis Achieve Such A Reduction In
Unemployment?
Read the sources below. What do they suggest
about the ways Hitler achieved a reduction in
unemployment?
Jews were excluded from the professions,
including teaching, medicine and the law Alan
Bullock, 1976
There were about one million unemployed as
compared withover two million at the end of
1928. How has Hitler performed this miracle? He
has put them into the army or other kinds of
forced service. Germany Today, 1938
Under the Nazis there had been much invisible
unemployment. The number of unemployed Jews is
great, but these are not counted as unemployed.
Another source of invisible unemployment has
been thedischargeof women whose husbands are
employed, and of unmarried men under 25Part time
workers are counted as fully employedThe
reintroduction of conscription has taken hundreds
of thousands of men off the labour market N.
Taylor, 1936
4
The National Labour Service (RAD)
Hitlers first job once he came to power was to
set up the National Labour Service (RAD) to
provide the jobs he had promised the German
people. This organisation gave men jobs in public
works schemes, for example building schools,
hospitals and motorways and digging drainage
ditches. Men in the RAD had to wear a uniform and
live in work camps. Their wages were only really
pocket money, but for thousands, this was an
improvement of a life with no work, at least they
got free meals.
5
The German Labour Front (DAF)

• Within months of taking power, Hitler decided to
  abolish all trade unions. In their place he set
  up the German Labour Front which was run by Dr.
  Robert Ley.
• What did the German Labour Front do?
• Bosses could no longer sack workers on the spot
• Workers could not leave a job without the
  governments permission
• Only government run labour exchanges could
  arrange new jobs
• Workers could no longer bargain for higher wages
• Strikes were made illegal
• Limitations on the hours a person could work were
  abolished - many Germans found they were working
  60 - 72 hour weeks by 1939

Was the German Labour Front good or bad? Explain.
6
Military Service
Hitler wanted to make Germany strong and
independent. This meant that the army needed
increasing in size and strength. In March 1935,
Hitler introduced compulsory military service and
set up an air force (the Luftwaffe). Obviously,
those doing military service did not count as
unemployed - this took 1,300,000 off the
unemployment registers.
By 1939 the army had grown from just 100,000 men
in 1933 to 1,400,000 men. All these men needed
equipping, so 46 billion marks were spent on
weapons and equipment, providing jobs for
thousands of Germans.
What do you think of this method to reduce
unemployment? Was it allowed under the Treaty of
Versailles?
7
Why Was There A Drop In Unemployment?
Using the information below, write a couple of
paragraphs explaining how Hitler had such an
impact on unemployment. Decide which impact had
the greatest effect and give reasons.
Jews and many women were forced out of their
jobs. The Jews were not German citizens and so
had no rights. The women because their role was
in the home, creating a stronger Germany.
The RAD provided work for the unemployed on
various public road schemes, all funded by the
government.
Compulsory military service began in March 1935.
An air force was set up and Germany began to be
rearmed.
8
Where Did The Money Come From?
One of the reasons the German economy suffered so
badly during the 1920s and 30s was due to the
fact that she imported large amounts of
foodstuffs, amongst other items. In order to make
Germany strong, Hitler realised that there needed
to be less reliance on foreign imports. In 1934 a
Battle for Production was launched to increase
production of grain. The drive was not very
successful mainly because there was a lack of new
machinery and labour. Harvests were also poor. By
1936, Germany was forced to buy the raw materials
for rearmament such as oil, lead and copper on
the open market as Germanys reserves had been
used up. German scientists were pressed into
developing substitutes for various goods which
Germany was importing, so that money could be
saved. Soon rubber and oil were being produced
synthetically.
9
The Success of Autarky
Autarky means self-sufficiency. Something Germany
was striving to achieve.
To achieve autarky, Hjalmar Schacht (minister of
economics) introduced measures to regulate
foreign trade, including setting up protectionist
tariffs. Schacht also promoted private investment
by introducing laws to limit the amount of profit
that could be taken out of businesses in
dividends. This helped encourage people to
reinvest profits into their business. Autarky was
not a complete success. By 1938 Germanys trade
deficit had risen to 432 million rentenmarks. One
reason was due to the fact that Hitler did not
want to squeeze the consumer too much. The Nazis
had come to power due to an economic recession,
if basic consumer goods were made unavailable,
Nazism would become unpopular. Despite this,
Hitler did succeed at reducing the volume of
imports as can be seen on the next slide.
10
Imports and Exports
What do you notice about the pattern of imports
and exports? If you want to reduce imports, why
would exports also have to be reduced?
11
Had Things Improved Under Nazism?
By 1936 the average factory worker was earning 35
rentenmarks a week. This was 10 times more than
the dole money that 6 million people had been
receiving in 1932. In your book, write down
whether you think the Nazis had improved the
economy. Do you think the Nazi economic policy
was geared towards preparing Germany for war or
improving the standard of living? Explain.