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Did Hitler achieve an economic miracle?
Did Hitler achieve an economic miracle?
Unemployment in Germany/TotalUnemployment in Germany/TotalJanuary 1933 6 million
January 1934 3.3 million
January 1935 2.9 million
January 1936 2.5 million
January 1937 1.8 million
January 1938 1.0 million
January 1939 302,000
January 1933 6 million
January 1934 3.3 million
January 1935 2.9 million
January 1936 2.5 million
January 1937 1.8 million
January 1938 1.0 million
January 1939 302,000
Is this evidence for an economic miracle?
“History will judge us according to whether we have succeeded in providing work.”Hitler
“History will judge us according to whether we have succeeded in providing work.”Hitler
Aims:Aims:Understand Nazi economic policiesMake historical judgement regarding
success of policiesSituation in 1933UnemploymentAutarkyNational Labour Service
(Reichsarbeitsdienst or RAD)German Labour Front / Robert LeyStrength through Joy (Kraft durch Freude
/KdF) Hjalmar SchachtConclusion: was there an economic miracle?
Understand Nazi economic policiesMake historical judgement regarding
success of policiesSituation in 1933UnemploymentAutarkyNational Labour Service
(Reichsarbeitsdienst or RAD)German Labour Front / Robert LeyStrength through Joy (Kraft durch Freude
/KdF) Hjalmar SchachtConclusion: was there an economic miracle?
Situation in 1933Situation in 1933
Recap: discuss in pairs for 2 minutes what the situation was in 1933 (you’ve already covered it!)
Recap: discuss in pairs for 2 minutes what the situation was in 1933 (you’ve already covered it!)
Situation in 1933: crisisSituation in 1933: crisisUnemployment peaked at 6 million
during the final days of the Weimar Republic – near enough 50% of the nation’s working population
Government unable to resolve problemsGreat Depression sparked by Wall Street
CrashHitler had promised to get German’s
working again - propaganda played on fear of no hope
This was his economic priority:drive for full employment: aim of first 4 year plan (1932-6)
Unemployment peaked at 6 million during the final days of the Weimar Republic – near enough 50% of the nation’s working population
Government unable to resolve problemsGreat Depression sparked by Wall Street
CrashHitler had promised to get German’s
working again - propaganda played on fear of no hope
This was his economic priority:drive for full employment: aim of first 4 year plan (1932-6)
Economic policy?Economic policy?
Before coming into power rhetoric had been socialist e.g. control of big business
This did not survive into practiceEconomic discussion in party forbidden“Let them own land or factories as
much as they please” state is supreme over owners and workers - Hitler
So economics was subordinate to politics
Before coming into power rhetoric had been socialist e.g. control of big business
This did not survive into practiceEconomic discussion in party forbidden“Let them own land or factories as
much as they please” state is supreme over owners and workers - Hitler
So economics was subordinate to politics
Unemployment in Germany/TotalUnemployment in Germany/TotalJanuary 1933 6 million
January 1934 3.3 million
January 1935 2.9 million
January 1936 2.5 million
January 1937 1.8 million
January 1938 1.0 million
January 1939 302,000
January 1933 6 million
January 1934 3.3 million
January 1935 2.9 million
January 1936 2.5 million
January 1937 1.8 million
January 1938 1.0 million
January 1939 302,000
Reminder of figures
Methods used to decrease unemployment
Methods used to decrease unemployment
Aim of first 4 year plan (1932-6)Public works schemes (started by
Von Papen and Bruning) extended:Arbeitdienst - afforestation &
water conservation schemesAlso building barracks &
motorways (Autobahnen) 7000kmRegulations: labour not machines
Aim of first 4 year plan (1932-6)Public works schemes (started by
Von Papen and Bruning) extended:Arbeitdienst - afforestation &
water conservation schemesAlso building barracks &
motorways (Autobahnen) 7000kmRegulations: labour not machines
Unemployment did decreaseUnemployment did decreaseBut: how much of this was propaganda? Women no longer included in the statistics so any women
who remained out of work under the Nazi’s rule did not exist as far as the statistics were concerned.
The unemployed were given a very simple choice: do whatever work is given to you by the government or be classed as "work-shy" and put in a concentration camp.
Jews lost their citizenship in 1935 and as a result were not included in unemployment figures even though many lost their employment at the start of Hitler’s time in power.
Many young men were taken off of the unemployment figure when conscription was brought in (1935) and men had to do their time in the army etc. By 1939, the army was 1.4 million strong. To equip these men with weapons etc., factories were built and this took even more off of the unemployment figure.
But: how much of this was propaganda? Women no longer included in the statistics so any women
who remained out of work under the Nazi’s rule did not exist as far as the statistics were concerned.
The unemployed were given a very simple choice: do whatever work is given to you by the government or be classed as "work-shy" and put in a concentration camp.
Jews lost their citizenship in 1935 and as a result were not included in unemployment figures even though many lost their employment at the start of Hitler’s time in power.
Many young men were taken off of the unemployment figure when conscription was brought in (1935) and men had to do their time in the army etc. By 1939, the army was 1.4 million strong. To equip these men with weapons etc., factories were built and this took even more off of the unemployment figure.
Autarky (self-sufficiency)Autarky (self-sufficiency)
Think: what were the possible aims for autarky? Why was it needed?
Think: what were the possible aims for autarky? Why was it needed?
Autarky (self-sufficiency)Autarky (self-sufficiency)Second aim of 4 year planGoering in overall charge / Hjalmar
Schacht - Reichsbank president also influential (later Minister of Economics)
Independent of world economic trendsNecessary because of boycotts & possible
warBilateral agreements with Balkan countriesLess successful than hoped: by 1939 oil
production 40% of what hoped & 30% raw materials imported
Second aim of 4 year planGoering in overall charge / Hjalmar
Schacht - Reichsbank president also influential (later Minister of Economics)
Independent of world economic trendsNecessary because of boycotts & possible
warBilateral agreements with Balkan countriesLess successful than hoped: by 1939 oil
production 40% of what hoped & 30% raw materials imported
Schacht and Big BusinessSchacht and Big Business
Larger enterprises supported - needed for rearmament and self sufficiency
Paid off foreign debts in ReichmarksTrade agreementsFinancial orthodoxy - reluctant to spend
more than income nearly stopped rearmament
Showpiece successes
Larger enterprises supported - needed for rearmament and self sufficiency
Paid off foreign debts in ReichmarksTrade agreementsFinancial orthodoxy - reluctant to spend
more than income nearly stopped rearmament
Showpiece successes
Hermann Goering Steel Works at Salzgitter
The PeasantsThe Peasants
Protected from rising industrial prices and falling income from goods
Debts suspended for Mar-Oct 1933Imported goods = higher tarriffsOnly Aryan farmersLaw went against larger farming units &
modern methods - didn’t help search for autarky
Protected from rising industrial prices and falling income from goods
Debts suspended for Mar-Oct 1933Imported goods = higher tarriffsOnly Aryan farmersLaw went against larger farming units &
modern methods - didn’t help search for autarky
National Labour Service (Reichsarbeitsdienst or RAD)
National Labour Service (Reichsarbeitsdienst or RAD)
Public worksWore a military style uniform, lived in
camps near to where they were working and received only what we would term pocket money
Compared to the lack of success of the Weimar government and the chronic misery of 1931 to 1932, felt at least the Nazi government was making the effort to improve their lot
Public worksWore a military style uniform, lived in
camps near to where they were working and received only what we would term pocket money
Compared to the lack of success of the Weimar government and the chronic misery of 1931 to 1932, felt at least the Nazi government was making the effort to improve their lot
German Labour Front German Labour Front
Set up by Robert LeyEquivalent of banned trades unionsWorkers could not be sacked on the
spot - had to have government permission to leave jobs
Government labour exchanges organised jobs
Hours 60 to 72 per weekStrikes banned
Set up by Robert LeyEquivalent of banned trades unionsWorkers could not be sacked on the
spot - had to have government permission to leave jobs
Government labour exchanges organised jobs
Hours 60 to 72 per weekStrikes banned
Kraft durch Freude (KdF)Kraft durch Freude (KdF)
Strength Through JoyOrganised workers’
leisure timeSubsidised activities
and holidaysVolkswagens - hire
purchase
Strength Through JoyOrganised workers’
leisure timeSubsidised activities
and holidaysVolkswagens - hire
purchase
ConclusionConclusionProduction had increasedUnemployment had decreased Workers lost freedomsWages never rose above 1930-2 levelsWere they better off? KdFEconomy ‘chaotic’: low foreign currency
reserves; deficitConfiscation of Jewish property &
Austrian assets after AnschlussStill impressive resultsFOR STATS SEE PAGE 316
Production had increasedUnemployment had decreased Workers lost freedomsWages never rose above 1930-2 levelsWere they better off? KdFEconomy ‘chaotic’: low foreign currency
reserves; deficitConfiscation of Jewish property &
Austrian assets after AnschlussStill impressive resultsFOR STATS SEE PAGE 316
InterpretationsInterpretationsMarxists: Nazi regime front for capitalist aims
(Trade unions / big business)Cf. T. W. Mason - ‘primacy of politics’ (co-
operation until 1936)How far did economic recovery depend on war
preparation?Some debate over this: Klein (didn’t want tough
measure to alienate) denied success related to war preparation - strong economic activity
vs Milward (more prepared for war)Both interpretations subsequently challengedKarl Bracher: ‘ruination’ of economy through
exploitation - aiming for rearmament
Marxists: Nazi regime front for capitalist aims (Trade unions / big business)
Cf. T. W. Mason - ‘primacy of politics’ (co-operation until 1936)
How far did economic recovery depend on war preparation?
Some debate over this: Klein (didn’t want tough measure to alienate) denied success related to war preparation - strong economic activity
vs Milward (more prepared for war)Both interpretations subsequently challengedKarl Bracher: ‘ruination’ of economy through
exploitation - aiming for rearmament
The Bigger PictureThe Bigger PictureGerman (and other countries) already
beginning to recover by 1933Recovery depended on heavy state
controlUnsound basis: no overseas investment
so many loans (often forced) = heavy deficit
Not geared up for total war from the start
Once Nazis put on total war economy in 1943 increases remarkable but too late
German (and other countries) already beginning to recover by 1933
Recovery depended on heavy state control
Unsound basis: no overseas investment so many loans (often forced) = heavy deficit
Not geared up for total war from the start
Once Nazis put on total war economy in 1943 increases remarkable but too late
An economic miracle?An economic miracle?
In pairs draw up a list of factors pro and con the existence of an economic miracle
In pairs draw up a list of factors pro and con the existence of an economic miracle