Unemployment went from 6 million in 1932 to 302 thousand by 1939. This in my opinion was Nazi most successful policy as it was both helping people and they was an increased support in the party.
The Nazi’s tried to reduce government spending by introducing the Mefo bill. These were credit note issued by the Reichsbank and was guaranteed money from the government. The government used this economic policy in order to rearm without having to having to pay immediately, this helped short as it was able to reflate the economy but still getting in debt. This funded almost half of Germany’s rearmament programme and was also an ingenious method to disguise military expenditures.
To cut Government spending they banned trade unions. Nazi’s gave orders to the SA to arrest Germany's trade union leaders. Robert Ley formed the Labour Front DAF, the only union organization allowed in the Third Reich. A pay freeze was introduced in 1933 and this was enforced by the Labour Front. Wages were now decided by the Labour Front and compulsory deductions made for income tax, and for its Strength through Joy programme. The Labour Front issued work-books that recorded the worker's employment record and no one could be employed without one. This allowed them to get people to work longer hours and get paid less. Government was also getting money back from the taxes which it could use for rearmament which was its highest priority.
To raise money for the government they used schemes in order to get in more money to help in the economy especially rearmament. They set up the Strength through Joy organisation which was cheap holidays and a car were to be won, most cruises were taken up by Nazi Party officials. The Nazis created another scheme whereby the workers could get a car. The Beetle, designed by Ferdinand Porsche, cost 990 marks this was about 35 weeks’ wages for the average worker. To pay for one, workers went on a hire purchase scheme. They paid 5 marks a week into an account and at the end no-one received a car.
In 1935 Adolf Hitler announced the introduction of Labour Service (RAD). Under this measure all men aged between the ages of nineteen and twenty-five had work for the government for six months. Later women were also included in the scheme and they did work such as teaching and domestic service. Germany were trying to decrease unemployment and so everyone would also be helping which was propaganda.
This all was under Hjalmar Schacht “new plan” scheme. This plan intended to reduce imports, reduce unemployment, channel government spending into a wide range of industries and make trade agreements with other nation.
The second category was Rearmament. Schacht had left because of disagreement over priorities as he wanted to boost exports and slow rearmament but Hitler wanted to rearm as soon as possible as he knew war was around the corner. Schacht was replaces by Goering who was the head of Luftware, which was the air-force.
Goering introduced the “four year plan” this was to prepare Germany for the war in 4 year. The main priority was to rearm. Germany was also to be an Autarky which meant it would be self-efficient. This meant it would not rely on any imports and it would provide all its economic needs on its own. In my opinion they did this because during World War 1 the British army starved Germany to defeat as it was blockaded.
They planned to increase Germany’s own production of key commodities such as iron and food. They wanted to develop ersatz which was a substitute of other products for example making Buna which was artificial rubber from acetylene to replace rubber and using coal to produce oil. It is usually difficult for a country to be self-sufficient like it required 6 tons of coal to produce 1 ton of oil. This economic policy cause many problems as they were many shortages in labour and raw material and prices were rising in 1939.
The final category is War and Speer was in charge. At this time the war had already started and they used Blitzkrieg this was taking over foreign land and using their resources to boost your economy. In 1939 Germany took over Austria and Czechoslovakia and gained vital economic resources. They also turned the economy into a Total War economy which meant everything in the economy would be used to help in the war.
I conclude by saying I truly think Nazi’s economics was particularly successful as achieved majority of their economic aims. They did reflate the economy and massively reduced unemployment and to a great extent were self-sufficient. They also did rearm to a great amount and were more ready prepared than the other countries.
