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Nazi Economic Policy.

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Nazi Economic Policy In 1929, after the Wall Street Crash, came a severe depression, in which the American investors recalled their short-term loans from Germany. Without the help of the investors German economy was lost, it depended on those loans. In 1931, two years later one of Germany's three largest joint-stock banks collapsed. As a result of this economic disaster, unemployment rose steeply from 2 million in 1929 to 5.6 million in the early months of 1932. The democratic government failed to solve any of these grave problems, mass unemployment, inflation and industrial slump. With Hitler in power these problems were being solved, although perhaps not terribly well. Aims of the Nazi Economic Policy 1.To reduce unemployment. ...read more.


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. ...read more.


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. ...read more.

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