Nazi economic policy 1933-39

• Finance minister 1934-1937
• Former president of the Reichsbank 
• Global leading economist
• Member of Germnay's elite (Von- schacht) 

Reduce the unemployment figures ( help ethnic germans, boost regimes popularity, stop working class turning to communism) Do this by: 

• Expanding the government sector so creating jobs in new departments and in the expanding **.
• New government investment in the public works, so unemployed can work in autobahns, public buildings and other infrastructure.( this policy was first introduced by Weimar government  in 1930)
• Secret rearmament and government subsidies created new manufacturing jobs.
• Conscription created roles in the military.
• However they also removed young people and ethnic minorities were removed from the statistics
• Women were encouraged to give up work through generous child benefit and discrimatory legislation. 

Wanted to stimulate the economy as they needed to solve the balance-of-payments deficit ( amount earned in exports being less than the amount spent on imports) as it was potentially dangerous by living outside its means.The economy also needed to grow for it to regain its world status and the economy growing results in the creation of more jobs.This was achieved by:

• The new plan (1934) which solved the deficit by reducing imports and new bilateral trade agreements. Bartering german manufactured products for balkan raw materials.
• People in the public sector began to earn money so spent more,increasing buisness profits. From this the overnment were able to tax companies and pay of their debts. New infrastructure being built alos boosted the private sector.
• As trade unions were banned less strikes occured so buisnesses could get away with paying lower wages.

Secret reamarmament began by progressing the restoration of the german military but needed to keep it secret to avoid britain and frances intervention(through the use of dummy companies)

• Rearmament was being paid for on credit as buisnesses were expecting to be paid with interest after the economies recovered.

• Unemployment figures dropped from 5.6 million to 1.6 million between 1932-1936, although these are the official figures so may be different to the real figues as certain groups of people were removed from the numbers. However overall the unemployment did decrease making this aim completed.
• Most women were happy to return to the home as they preffered the traditional role of women which the Nazis allowed in their policies.
• By 1936 the balance of payments had a surplus of 0.6 million therefore the country was earning money.
• Industrial production increased by over 20% from 1934-1936
• National income also increased by 20 billion between 1933-1936
• The rearamament did begin to progress and although there were repated warnings from Churchill neither Britain or France took and action 

• A long serving Nazi 
• Lots of buisness connections 
• Controlled the airforce 
• Plenipotentiary for the four year plan (economics dictator)

Wanted to rearm Germany openly and to start territorial expansion by:

• Spending on rearmament increased largely from 2 billion to 17 billion from 1933-1938

The Nazis aimed to make themselves Autarky (self sufficient) and overcome the effects of future encirclement and blockade 

• In 1936 the four year plan ministry was established to set targets for industry and the government interferred in these industries to make sure they hit these targets (state capitalism) 
• The goverment tried to overcome a lack of natural materials by producing artificial substitutes such as ersatz.

• By 1939 Germany was only ready for a localised quick war and not a total war.
• For the rearmament the government had to import many raw materials however this led to the balance of payments being deficit of 0.1 billion by 1938 (going back on their earlier aim to stabilise the balance of payments)
• The government only achieved being self sufficient in certain areas such as brown coal however this still depended on imports for 1/3rd of its raw materials. 
• There was a lack of iron ore,oil and rubber though and these were essential for modern warfare.
• The artificial substitutions proved an ineffective process as it took 6 tons of coal to produce one coal of oil.