• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

How far can it be said that Nazi policies in Germany were more successful in reducing the effects of the Great Depression than the approaches taken by other European countries?

Extracts from this document...


How far can it be said that Nazi policies in Germany were more successful in reducing the effects of the Great Depression than the approaches taken by other European countries? Throughout 1929 and even some way into the 1930 few people appreciated that the world was on the point of experiencing one of the worst depressions in history (1914-1990 The European Economy pg63). The Great Depression began in 1929 in the United States and spread, affecting almost all of the countries in the world. It was a depression combining duration and great severity and it had a tremendous effect on Europe. By the mid-1930's most countries were in the midst of a deep depression. John Maynard Keynes called it "The Greatest catastrophe". Most countries initially continued in their 'laissez-faire' approach until literally forced to intervene and once they did intervene with one or two notable expectations, the intervention was orthodox. For example Britain's attempt at a recovery was remarkably orthodox. The economic crisis did not give rise to big public works project. Fiscal policy was very orthodox. The government were reluctant to deficit finance, the aim was to balance the budget. Apart from a small increase in public expenditure between 1929 and 1931, government spending (both at central and local levels) ...read more.


Whilst other countries like Britain and France continued with their liberal economic policies and also Sweden to some point, the German economy travelled in the opposite direction moving from a sceptical introduction of states policies in 1933 to a command economy. Without such a 'package' the economy might not have recovered to the extent that it did in the way that Hitler's future war plans dictated (The Nazi Economic Recovery 1932-1938 p41). The central feature of Nazi policy was, nevertheless, a programme of government spending and public investment designed to stimulate and demand and expand income. Hitler argued that economic recovery would only occur 'if measures are taken again and again with energetic attacks and fanatical tenacity against unemployment". The Third Reich was originally piece orientated, concentrating on the eradication of unemployment. Germany again had one of the worst records, between 1929 and 1930 unemployment had doubled to reach a figure of 4.5 million, two years later it had crept up to 6 million. This was seen as crucial to electoral success. As soon as the Nazi party gained power they extended the relief policy by launching a massive public works programme, some 6 billion reichsmarks were spent. This after a period of time soon cleaned up a good deal of the unemployment. ...read more.


Sweden the country that had undertook a similar sort of line to the Nazi policy of large public spending was the second best performing economy in the recovery period. Germany was the only country to eliminate unemployment and her record in aggregate output was impressive. Germany's policy differed from Britain's, where are Britain argued money was better spent in the private sector, Hitler re-directed funds from the private to the public sector. Forced saving and price fixing kept demand for consumer good under control. So if the Nazi party were more successful in pulling Germany out of the recession, why did they succeed? Some people point to the authoritarian government. This style of government allowed them to push through whatever they liked and since there was no effective opposition as they was so much dislike for the Weimar government, it allowed the Nazi party to do what it liked. However given the high priority accorded to investment by the government it is not surprising that the productive performance of the economy was not higher (Nazi Economic Recovery 1932-1938 pg 55). R.J. Overy also states that because the state had taken control over large sections of the economy and areas of investment, market pressures were missing from increasing efficiency. Also since the economy had been geared towards capital goods, there was a lack of consumer goods and services, shops were running out of food. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. Was the Nazi economic policy a success or failure?

    In 1934 Schact was made minister of economics. He soon introduced the New Plan (September 1934) which gave the government extensive powers to regulate trade and currency transactions. As Germanys economy had collapsed on the back of world depression the aim of the New Plan was to make it independent of that system.

  2. An Empirical Investigation into the Causes and Effects of Liquidity in Emerging

    uncertainty in the market and secondly, that they face a higher possibility of dealing with informed traders. As a result bid-ask spreads are wider, so bonds are illiquid. In summation, a positive relationship between volatility and illiquidity exists that could indicate either a higher adverse selection component or a transitory component, or both.

  1. A Comparative Discussion of Different Approaches to Entrepreneurship.

    agent's implied human action as being a part of innovativeness neglecting the question whether a state of equilibrium in a dynamic economic world will ever be reached before another dynamic entrepreneur comes to prevent economy from equilibrium, it would leave us with the centre-piece of the Schumpeterian dynamics of economic change, i.e.

  2. Causes of the Great Depression

    Unemployment * ripple effect as leading factories close * rose to 25-35% of total labor force, 80% in Toledo * farm income declined 60%; 1/3 lost land 6. Trade Collapse * foreign countries retaliate with high tariffs * Weimar Republic unable to pay reparations or U.S. banks loans * U.S.

  1. 'There is a great deal of evidence to support the view that the relative ...

    In contrast, in Britain a very large number of relatively small and inefficient firms exited producing a multiplicity of articles. Costs of production in Britain could have been reduced appreciably if many of the older works had been well planned on a large scale, equipped with plant of the most

  2. How Successful Was Nazi Economic Policy?

    The army was also hugely expanded, against the terms of the Versailles Treaty, which helped to absorb thousands of unemployed people. Part-time workers were also counted as full-time. Improved welfare and conditions for workers was something that the Nazis had promised before they won power, and on the surface they appeared to stick to their promises.

  1. Outline the reasons why the process of industrialization in developing countries might require government ...

    Here we have another indicator of a better education system in Botswana, the enrolment rates in primary and secondary levels are over double those of Ethiopia. Also here we see a firmer indicator of development shown with education statistics. As we can see the GDP p.c of Botswana is far

  2. Economics of European Integration

    level, will place them in a different position in the common European electricity market. From the figures above, we can also conclude that industrial energy users are far out the most important customers in the electricity market. To defend their interest, they established the International Federation of Industrial Energy Consumers, IFIEC Europe.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work