What are the features of a successful economy

What are the features of a successful economy?

The Nazi economy Recovery (1933 -6) Rearmament (1936 -41) Total War (1942 -5) Schact Policies Problems Goering Policies Speer Problems

How successful was the economy 1933 -39? Very Unemployment reduced from 6 m to 200 k Hardly

Recovery, 1933 -36 • Public works • Tax concessions and grants • Groups pressurised • RAD • Conscription • Mefo Bills

Public Works Huge government funding for Public Works These included autobahns, homes, schools, hospitals etc. Some of this begun in 1932 Quickly reduced unemployment – use of manual labour instead of machines Great propaganda opportunities Provided orders for private companies Low wages Increasing government debt

Incentives: Taxes and Grants Newly married couples paid less taxes Cash and tax bonuses for mothers Companies given subsidies for hiring more workers

Groups Women removed from public sector employment and encouraged to be mothers, wives etc. Jews removed from public service jobs (doctors, lawyers etc) by Nuremburg laws of 1935 Trades Unions banned – prevents strikes and workers’ demands German Labour Front – RAD Removed young men from unemployment (400 k in 1934) for public works Conscription from 1935 took all men 18 -25 for two years

Finance Mefo Bills Balance of Trade A credit note issued by the government Imports to be approved by the government Given to companies in exchange for goods/services Trade agreements with Balkan states (include barter rather than cash) Repaid in cash, plus interest, after five years following tax income Increased debt Disguised military expenditure Hjalmar Schacht with Hitler

Nazi Economic Policies 1933 -36 Aims Policies Success?