Economic impact

of Hitlers rule

DO YOU REMEMBER

What did Hitler promise the

unemployed?
What did Hitler promise the rich
industrialists?

GERMANY JUST BEFORE HITLER TOOK

OVER IN 1933

GREAT DEPRESSION (1929)

Unemployed
dockworkers at
Hamburgs harbour
in January 1931.
The workers are
milling about,
waiting for the
unlikely prospect
of day work.

A POOR FAMILY IN BERLIN, 1931

ECONOMIC POLICY

HITLER PROMISED TO MAKE GERMANY

STRONG AND PROSPEROUS AGAIN!
Video: Nazi Economic Miracle
http://www.youtube.com/watch?v=A7m6b1cyRyo

VIDEO: NAZI ECONOMIC MIRACLE

http://www.youtube.com/watch?v=A7m6b1cyRyo

RE-EMPLOYMENT
There was massive unemployment at the time when
Hitler came to power.
Public works programmes such as the building of
roads, motorways (Autobahn) and public buildings were
initiated. This greatly reduced the unemployment rate
while at the same time providing infrastructure and
facilities for the public.

HITLER & AUTOBAHN

Postcard
commemorating
the construction of
the autobahn. Left
side shows Hitler
starting the works
and a completed
section of the
motorway in 1936
when 1000km had
been completed

4-LANE DIVIDED HIGHWAYS, GERMANY

(1930S)

HITLER AT THE OPENING OF THE

AUTOBAHN.

MORE ABOUT THE AUTOBAHN

Hitler, who never earned a drivers license, and his
entourage was the first to ride on completed roads.
Autobahn built for the Aryan populace only as the
German Jews had to give up their driving license by the
late 1930s.

MILITARISATION
In 1935, the Nazis introduced conscription for the army.
By 1939, there were 1.4 million men in the army.
(HITLER DEFIED THE TOV!)
Unemployment rate was drastically reduced as men
were either employed by the army or working in factories
that produced war materials such as uniforms, weapons
and equipment.
Creation of the modern air force the Luftwaffe also
boosted the economy and provided employment.

RISE OF BIG INDUSTRIALISTS

Under the New Plan 1934 which aimed to make
Germany self-sufficient, the Nazi government developed
a close relationship with big industrialists.
Imports were banned. Industries producing goods
important to Germany (e.g. coal, explosives, oil and steel
factories) were subsidized and awarded valuable
government contracts to make these items. In return,
they supported the Nazi government.
The governments ban on trade unions also helped the
big businesses. Employers no longer had to worry about
conflict with workers as the workers were now under the
strict control of the government.

 Goerings Four Year Plan (1936) also had a huge impact

on big businesses. Its purpose was to prepare Germany
for war in four years. As such, the state spent massive
amounts of money on rearmament, which in turn
boosted the incomes of companies involved in the
production of war materials. These big companies, in
return, made compulsory donations directly to the Nazi
Party.
Thus, these big industrialists thrived and their production
of important products contributed to the boost in the
economy. At the same time, the Nazis did not have to be
concerned about the Partys finances while
strengthening their power and influence.

CONTROL OF TRADE UNIONS

Trade unions were abolished.
Workers were forced instead to join the DAF (German Work
Front), a workers organization controlled by the Nazis.
Workers were strictly controlled by the DAF. Although they
could not be sacked on the spot, they were no longer
allowed to strike or bargain for pay rises or better
conditions.
They also needed the governments permission to leave the
jobs. (In some industries, they were not allowed to change jobs
at all. Workers had no job mobility.)
While Germanys economy seemed to be improving in general,
it was at the expense of the workers wages and benefits. For
example, by 1939, they were working up to 72 hours a week
and their wages were restricted.

DAF FLAG & POSTER

DAF poster DAF

unites all kinds of
workers

 To ensure that workers continue to support the Nazi

Party, the DAF set up the Strength Through Joy
programme to placate them. The scheme provided
workers with cheap cinema and theatre tickets, and
organised courses and cultural and sports events for
them. This allowed the Nazi government to indirectly
control workers leisure time.
Working conditions for workers were also improved
under the DAFs Beauty of Labour scheme. For
example, low-cost canteens and washing facilities were
set up in factories. However, workers often had to
indirectly pay for these services.

 KdF scheme:
Workers could save
five Marks a week
towards a cheap car,
the KdF-wagen (later
known as the
Volkswagen Beetle)

NEGATIVE/POSITIVE EFFECTS OF HITLERS

ECONOMIC POLICIES
Policies
Re-employment
Militarisation
Rise of Big
Industrialists
Control of Trade
Unions

Positive Effects

Negative Effects

NEGATIVE/POSITIVE EFFECTS OF HITLERS

ECONOMIC POLICIES
Policies

Positive Effects

Re-employment

- Reduced unemployment
rate. (Public works
programmes created jobs for
the unemployed.)

Militarisation

- Reduced unemployment
rate. (People were either
working in the military/air
force or in factories related
to military-production)
- Boosted the economy

Rise of Big
Industrialists
Control of Trade
Unions

Negative Effects

NEGATIVE/POSITIVE EFFECTS OF HITLERS

ECONOMIC POLICIES
Policies

Positive Effects

Re-employment
Militarisation

Rise of Big
Industrialists
Control of Trade
Unions

- Reduced unemployment
rate. (People were either
working in the military/air
force or in factories related
to military-production)
- Boosted the economy

Negative Effects

NEGATIVE/POSITIVE EFFECTS OF HITLERS

ECONOMIC POLICIES
Policies

Positive Effects

Negative Effects

- Boosted Germanys
economy

- Workers and
businesses were strictly
controlled

Re-employment
Militarisation
Rise of Big
Industrialists
Control of trade
unions

NEGATIVE/POSITIVE EFFECTS OF HITLERS

ECONOMIC POLICIES
Policies

Positive Effects

Negative Effects

- Job security for the workers

as they could not be sacked
on the spot.
- Workers were provided with
leisure activites through the
KdF programme
- Working conditions were
improved through the DAF
Beauty of Labour scheme.

- Workers were strictly

controlled by the
government (e.g. not
allowed to
strike/bargain for pay
raises or better
conditions)

Re-employment
Militarisation
Rise of Big
Industrialists
Control of trade
unions