© Boardworks Ltd 2003 1 of 14 Was The Economy Any Better Under The Nazis?

© Boardworks Ltd 20031 of 14

Was The Economy Any Better Under The Nazis?


Unemployment under Hitler

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Unemployment

How did unemployment fare under Hitler?

How do you think he managed to make such an impact?


How was the reduction in unemployment achieved?

Read the sources. What do they suggest about the ways Hitler achieved a reduction in unemployment?

“Jews were excluded from the professions, including teaching, medicine and the law…” Alan Bullock, 1976.

“There were about one million unemployed as compared with … over two million at the end of 1928. How has Hitler performed this miracle? He has put them into the army or other kinds of forced service.” Germany Today, 1938.


“Under the Nazis there had been much invisible unemployment. The number of unemployed Jews is great, but these are not counted as unemployed. Another source of ‘invisible unemployment’ has been the … discharge … of women whose husbands are employed, and of unmarried men under 25 … Part-time workers are counted as fully employed … The reintroduction of conscription has taken hundreds of thousands of men off the labour market…” N Taylor, 1936.


The National Labour Service (RAD)

Hitler’s first job once he came to power was to set up the National Labour Service (RAD) to provide the jobs he had promised the German people.

This organization gave men jobs in public works schemes, for example, building schools, hospitals and motorways and digging drainage ditches.

Men in the RAD had to wear a uniform and live in work camps. Their wages were only really pocket money, but for thousands, this was an improvement of a life with no work, at least they got free meals.


The German Labour Front (DAF)

bosses could no longer sack workers on the spotworkers could not leave a job without the government’s permissiononly government-run labour exchanges could arrange new jobsworkers could no longer bargain for higher wagesstrikes were made illegallimitations on the hours a person could work were abolished. Many Germans were working 60-72 hour weeks by 1939.

Was the German Labour Front good or bad? Explain.

Within months of taking power, Hitler decided to abolish all trade unions. In their place he set up the German Labour Front which was run by Dr Robert Ley. It put in place a number of rules:


Military service

Hitler wanted to make Germany strong and independent. This meant that the army needed increasing in size and strength. In March 1935, Hitler introduced compulsory military service and set up an air force (the Luftwaffe). Obviously, those doing military service did not count as unemployed – this took 1,300,000 off the unemployment registers.

The army grew from just 100,000 men in 1933 to 1,400,000 in 1939. These soldiers needed equipping, so 46 billion marks were spent on weapons and equipment, providing jobs for thousands of Germans.

What do you think of this method to reduce unemployment?

Was it allowed under the Treaty of Versailles?


Why was there a drop in unemployment?

Using the information below, write a couple of paragraphs explaining how Hitler had such an impact on unemployment.Decide which impact had the greatest effect and give reasons.

Jews and many women were forced out of their jobs: Jews were not German citizens and so had no rights. Women were told their role was in the home, creating a stronger Germany.

The RAD provided work for the unemployed on various public road schemes, all funded by the government.

Compulsory military service began in March 1935. An air force was set up and Germany began to be rearmed.


Where did the money come from?

One of the reasons the German economy suffered so badly during the 1920s and 30s was due to the fact that the country imported large amounts of foodstuffs and other items. In order to make Germany strong, Hitler realised that there needed to be less reliance on foreign imports.

In 1934 a ‘Battle for Production’ was launched to increase production of grain. The drive was not very successful, mainly because there was a lack of new machinery and labour. Harvests were also poor.


By 1936, Germany was forced to buy the raw materials for rearmament, such as oil, lead and copper, on the open market as Germany’s reserves had been used up.

German scientists were pressed into developing substitutes for various goods which Germany was importing, so that money could be saved. Soon rubber and oil were being produced synthetically.


The success of autarky

Autarky is self-sufficiency, and was something that Germany was striving to achieve.

To achieve autarky, Hjalmar Schacht, the minister of economics, introduced measures to regulate foreign trade, including setting up protectionist tariffs.

Schacht also promoted private investment by introducing laws to limit the amount of profit that could be taken out of businesses in dividends. This helped encourage people to reinvest profits into their business.


Autarky was not a complete success. By 1938 Germany’s trade deficit had risen to 432 million rentenmarks. One reason was due to the fact that Hitler did not want to squeeze the consumer too much. The Nazis had come to power due to an economic recession, and so if basic consumer goods were made unavailable, Nazism would become unpopular.

Despite this, Hitler did succeed at reducing the volume of imports, as can be seen on the next slide.


Imports and Exports

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Exports by volume(1913 = 100)

Imports by volume(1913 = 100)

What do you notice about the pattern of imports and exports?If you want to reduce imports, why would exports also have to be reduced?


Had things improved under Nazism?

By 1936, the average factory worker was earning 35 rentenmarks a week. This was 10 times more than the dole money that six million people had been receiving in 1932.

Write down whether you think the Nazis had improved the economy.

Do you think the Nazi economic policy was geared towards preparing Germany for war or improving the standard of living? Explain.

© Boardworks Ltd 2003 1 of 14 Was The Economy Any Better Under The Nazis?

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