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ASSESS THE EFFECTIVENESS OF ECONOMIC PLANNING IN BRINGING ABOUT STABILITY AND PROGRESS IN GERMANY IN THE YEARS 1933 TO 1941 Hitler succeeded in creating a German economy which allowed him to dominate Europe by 1941. During this period Hitler was successful in stabilizing the Germany economy and progressing towards an economy which would prepare Germany for war. Cited in Mein Kampf and Zweites Buche are Hitler's four main aims concerning economic policy. First, Hitler aimed to create an autarkic system, which would enable Germany to sustain broader hegemony within Europe. Secondly, he intended to target above all the lands in the east. Third, since the latter inevitably involved expansion- and therefore conflict- the economic infrastructure would have to accommodate a considerable increase in military expenditure. But, fourth, he needed the support of the German people and could not therefore risk severely depressing their living standards in any quest for military supremacy. Before 1933 Hitler had no real economic policy to speak of. From 1932 onwards the Nazis started to address this issue. They wanted Germany to become an autarky (a self-sufficient state), and then develop into the dominating economic power in Europe. Hitler wanted Germany to develop an economy that was devoted to the needs of war even in peace time. The ideology of Nazism had no underlying economic component; there was no equivalent to the notion of political change occurring through the dialectical conflict between classes exerting their economic interest. Hitler did have ideas which influenced his economic policy; these could be seen in Mein Kampf and the Zweites Buche. Hitler intended to target above all the lands in the east, in his search for Lebensraum. When Hitler came into power in 1933 there was a worldwide recovery happening after the depression and in Germany. However the German economy at this time was very bleak. Six million became unemployed where the employed suffered due to reduced hours and low earnings. ...read more.


The measures introduced by Schact was very effective, for example the introduction of Mefo Bills helped to finance increased public expenditure without causing inflation this helped unemployment figures and was widely welcomed. Mefo Bills, which were given to companies instead of money, with the promise that they would be repaid with interest after five years. The introduction of Mefo bills meant that many more contracts were given to companies that otherwise would not have had the funding to complete projects or pay their workers. This meant that many more people were employed, resulting in greater tax revenue. These measures also helped to induce a rapid rise in production levels, with the renewed confidence in the economy. Mefo bills meant that investment could be made without any real money being spent, which prevented inflation. The introduction of Mefo bills caused Germany to progress economically as it also helped in increase production levels and helped to stabilise the economy by lowering unemployment levels. However on the other hand, progression of the German economy must be questioned because the New Plan didn't solve the trade problem. There was still the problem of increased demand sucking in imports, especially as the pace of rearmament grew. This economic 'plan' therefore couldn't create long term solutions only short term as In 1939 Germany was still dependent on foreign imports for a third of its raw materials. The Nazis realised that the only way Germany could become completely self-sufficient would be to conquer countries that could provide the raw materials they needed. Not only were there economic recovery and reorganization taking place in the cities, but there were also two important measures performed in the rural areas of Germany as well. Hitler and his ministers were successful in creating a progressive German economy in the agricultural field, by implementing new plans and rules. The first one was the emergence of "Reich Food Estate" (Reichsnahrstand) ...read more.


Therefore, Hitler did accomplish his economic goal - he made Germany strong enough for a chain of short wars with rapid victory, though apparently he called for total Autarky for propaganda purpose. Also, many historians believed that Hitler was supportive of "Blitzkrieg". Hardach said that Hitler "had no desire to engage in a protracted war of attrition with strategic bombing and a sea blockade. Making a realistic assessment of his country's limited economic resources, he was intended rather on a rapid campaign'. Also the historian Stolper agreed with the point that 'Hitler never contemplated a long drawn-out war'. Hence Hitler was very successful with economic planning of 'Blitzkrieg' as it enabled the German economy to progress. Even though for two years the German economy failed to meet Hitler's military requirements, the 'Blitzkrieg' was an effective economic campaign. Economic planning during 1933-1941 was effective in brining about stability and progress. Unemployment was tackled, which paved the way for Germany to build up its economic strength which allowed him to dominate Europe by 1941. However due to Hitler's ideological beliefs such as 'Rearmament' and 'Lebensraum' his priorities hindered the German economy's progress. If he had paid more attention to consumer and export markets, the economy would have progressed further. On the other hand he was successful in the recovery from depression and was the driving force in stabilising the economy, through the appointment of key ministers such as Schacht who was able to stabilise the economy through his expertise knowledge. Hitler was unsuccessful in achieving full autarky. Some historians argued that Hitler was unsuccessful because of his personality cult, that he was "untrained in economics, unsophisticated in its technicalities, and completely impatient of its administrative problems". This was a major reason which hindered the progress of the German economy towards the end from 1939-1941. Hardach critically pointed out that, "Germany was still painfully dependent on essential imports in 1939". In the end the Nazi economy was geared towards total wars which effectively hampered Germany's economic progress. ?? ?? ?? ?? FAHIM TALUKDER U6SD ...read more.

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