2. To build up German armaments industry and to rearm and enlarge the German army, navy and air force.
3. To make Germany economically self-sufficient so it could not be blockaded in times of war.
The exclusion of women and non Nazi supporters from the workforce was one method used by Nazis to reduce unemployment. Many people had to accept jobs that they didn't want or were not qualified for, for fear of being labelled an undesirable, or lazy. The Labour Service was also another method of creating jobs, although this was put into practise before Hitler came to power. This involved six months work for very low pay at the age of eighteen. The Labour Service built the Autobahns, or motorways, often using hand tools because this meant that more workers were needed. The creation of the Autobahn network employed hundreds of thousands of workers, but also led to work in other industries, such as engineering and iron and steel. In 1935 conscription was introduced and this reduced unemployment still further. Most men went into the army after they completed their Labour Service. This meant that they would be members of Nazi controlled organisations from the ages of five to twenty one. Rearment also began in 1935 leading to another reduction in unemployment. By 1938 the Nazis claimed the number of unemployed had fallen to 500,000. At one point Hitler claimed that 126,000 jobs were being created every week. However many of the jobs being created were only temporary.
In 1933 Hitler entrusted Germany's economy to Dr. Hjalmar Schacht . He was made President of the Reichsbank and in 1934 he was made Minister of the Economy. He had been a loyal supporter of Hitler before the Nazis came to power. He was also a brilliant financial expert and was trusted by business people in Germany and by foreign leaders and bankers. He devised what he called the ''New Plan'.
How the New Plan Worked.
1 Imports were limited: How much and what materials could be imported were carefully controlled.
2. Trade agreements were made with certain individual countries (for example, Hungary exchanged butter. vegetable oil, fodder and raw materials for industrial products in 1934) to supply the raw materials Germany wanted in return for German goods.
3. Government spending; was channelled into a wide range of industries.
Between 1934 and 1936 this New Plan solved the economic crisis and enabled Hitler to rearm his forces, although the fact that world economic was getting back into shape from 1933 onwards helped greatly anyway. However in 1935 Hitler wanted to prepare Germany for war and rearm much faster. Schacht told Hitler that this was not possible and soon lost his power, resigning in 1937. Hermann Goering took his place, introducing the four year plan.
How the Four Year Plan worked.
1. Increase production of the raw materials needed for rearmament: coal, iron ore, oil, metal and explosives
2. Persuade big businesses to produce key synthetic raw materials such as rubber, fuel and textiles.
3. Reduce imports even further.
4. Tighten controls on prices and wages.
5. Use forced labour if needed.
6. Build new industrial plants such as the Herman Goering Works - a huge mining and metal-works.
