Nazi Economic Policy

Nazi economic aims and plans

Schacht's New Plan (1934-36)

• Reduce unemployment

• Reduce the trade deficit by limiting the number of imports from abroad and encourage people to buy local goods

• Increase the industrial output and the number of raw materials that are produced

• Increase the amount the government spends on supporting local industries

• Improve the living standard of the working class

Goering's Four Year Plan (1936-39)

• Reduce unemployment

• Make Germany an autarky

• Increase production and industrial output

• Make Germany ready for war and spend more on rearmament

The Failure of Autarky

• Imports were higher in 1934 and 1938.

• Government had a higher expenditure than income

• In 1938/39, the debt was double than that of the income


Definitions:

Autarky: self-sufficient

Right:

Farming in Germany.

(Image from Flamepool)

Economic policies towards big business, the middle classes, farmers and workers

For Businesses

◦ Government invested in a wide range of industries.

--> Production increased

--> Government invested 20 billion more German Marks.

- However, the Government began to create more debts.

For workers

◦ As the Government invested in a wide range of industries.

--> More jobs were needed to fulfil supply demand

--> Wages slowly increased from 85 to 105 over six years.

- Diets of working class families poorer quality as they couldn't afford meat, wheat bread, dairy or beer due to less imports

For farmers

◦ Germany encouraged people to buy local produce.

--> Increased tax on imports.

--> Made local goods more preferable.

- This made the diets of working class families poorer quality as they couldn't afford meat, wheat bread, dairy or beer

The successes and failures of Nazi economic policies

Did the Nazis fulfil all their Economic Aims?