Economic Policies Under Hitler


1933: Great Depression majorly affected Germany

Trade, Industry, Unemployment, Agriculture, Finance (private banks)

Hitler was aware of these issues and knew that public support depended on his work (or the appearance of it) to solve them.

Nazi Party considered many approaches:

25 Points Program:

anti-capitalist, profit-sharing, large industrial enterprises, insurance for old age, and the nationalization of all businesses

Deficit Financing:

spending money on public works which would then create jobs which would hopefully help to repair the economy


defense economy, in peacetime Germany's economy geared towards preparing for total war, autarky

Issues: disagreement within the party, lack of decisive action

Hjalmar Schacht

deficit financing,

which increased public investment because the German banking system was very weak

government had a lot of control over where capital went in the economy

lots of benefits to some groups like farmers and small businesses

supported the Nazis the most

some of some examples of these were tariffs on imported produce and specific subsidies to farmers

A big success of the investments by the state were large public works projects

deforestation, land reclamation, autobahn, buildings

this tripled public investment between 1933-1936

Many successes in jobs


rapid increase in demand

balance of trade deficit which is if they're importing lots of raw materials but not exporting anything so they're losing money

factions in the government

because people didn't know who was going to get to spend the money

in 1934,

Schacht was given large control over the economy

the new plan:

this plan increased the control of the government almost entirely over the economy for




change to prevent excessive imports they could decide which imports were allowed or disapproved

some imports that were allowed with metals because of heavy industry

he laid the foundation for economic recovery that is often attributed to the Nazis

unemployment fell

industrial production rose

however there were still many structural issues particularly with the balance of payments issues

he knew that these plans deficit spending and balance of payments could not go on indefinitely

early 1936, he could see that Germany was going to be deeply in debt

he suggested they spend less money on arms and more on food for people however this was unacceptable to the Nazi party

this debate was summed up in the question guns or butter

Hitler schools in creating for your plan with the German Armed Forces be operational in four years and the German economy be prepared for total war for years this crisis of deficit spending was resolved by before your plan under the control of Herman Goring

The goals of the plane were mainly to expand rearmament and I'll talk to Jeremy very self-sufficient in food industry

do this they were going to regulate imports and exports chemicals and metals instead of agriculture control labor price inflation increase production of Ramen Cheerios so they didn't have to import them using substitute products like artificial rubber and to increase agricultural

Nazi control over the economy became much tighter

shocked and Goring at many disagreements because shocked thought that goring didn't know what he was eventually cha-cha realize that his influence was on the Wayne and he resigned in 1937 from this point on coring was mostly in charge

the four-year plan was successful in not increasing Germany's reliance on exports it wasn't successful in that Germany was still very dependent on foreign supplies for Ron materials even once were broken out

U2 the military successes by the German Armed Forces until 1941 one Hitler and the Nazi's popular support and allowed people to assume the economy was prepared from work

there was lots of German Conaby expansion they were determined to avoid the problems faced in the first four so were very prepared for a nature and perhaps extended conflict even if this was not what they intended many war economy decrees were issued by the 1939 at many programs for all the options for military spending doubled from fashioning seen fairy

spite all these attempts actual mobilization of the German economy had many problems like inefficiency and poor coordination and so lots of knots of the ornaments and some liens and weapons could not we're not did not meet the expectations

The Nazis had long-term plans but they were short-term needs for war things

there was a ministry of armaments but they were also those of economics finance in labor all acting independently there was lots of infighting between leading figures there were several groups in charge of armaments and they all wanted their own things consequence of this was that after two years of war Germany's economic mobilization for two or have not achieved what they expected

Albert Speer

minister of armaments

had a close friendship with Hitler and he used these ties and Hitler's authority to cut through all the warring interests between the different Nazi leaders and he gave industrialists more power cord needed and Marshall as a process of war production and more affective extorted the potential of Germany's resources and labor

he employed more women in the factories made use of concentration camp  as workers

prevented skilled workers from drinking lost to the military

Speer was able to raise in the mission by almost 100% tanks by 25% in arms production by 59%

however they were still not reaching their potential

because of party issues including assess and there were bombings that were detrimental

economy proved incapable of rising to the demands of total war and the cost of that failure without was all too clearly to be seen in the ruins and economic collapse of 1945

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