Did Hitler achieve an economic miracle?

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 1939 302,000

January 1933 6 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 1939 302,000

January 1933 6 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

Documents

Did Hitler achieve an economic miracle?