Nazi Success In Achieving Ecomonic Aims

When Hitler became Chancellor there were as many as 6 million unemployed however by 1935 there were only 2 million, and by 1939 there was a shortage of labour. This amazing economic success was one of the major reasons for Hitler’s success in getting into power and also the reason for his popularity.

Hitler aimed to be the ‘Saviour of Germany’ which was to end the depression and get Germany back to full employment. This would improve living conditions as well as the economy of Germany because it enables more resources to be utilised to rebuild Germany’s military might, as a prelude to territorial expansion. Hitler’s other major priority was creating a Wehrwirtschaft, or defence economy, an economy geared to the needs of future war. This idea was widely supported by in nationalist circles and by the army. The economy was to expand vital war materials, develop substitutes for imports, and train the workforce for skills transferable for war production, to make Germany ready for war. Other Nazis stressed the importance of fostering the economic interests of the German Mittlesand and restricting what they consider to be harmful influence of financial capital, and some also favoured the Corporativist organisation with the economy organised by the state to protect the interest of all groups and ensure maximum production.

From 1933 onwards Hitler was faced with a difficult situation, the depression was at its worst and it destroyed the previous regime. Germany was short of essential raw materials and they did not have the foreign exchange rate to pay for imports. With over 6 million Germans unemployed the people and the state were in a low self esteem and investments were very low so this is a gate for Hitler to make an impact. Potential wise Germany can be one of the most powerful economies in the world because of its human and material resources. The new government took action on a broad front to create jobs. It increased public expenditure and investments and tried to stimulate consumer demands. Hitler extends the public work schemes initiated in 1932, especially the building the building of homes and motorways. Such works, paid for workers. Tax concessions and special grants, for example newlyweds also stimulate demands. The destruction of independent unions and the new atmosphere of dynamism that the government created to help restore confidence of the people. There were subsides for hiring more workers in the private sector, even domestic and a growth in the government jobs. Some were pressured out of employment such as the Jews and Married women. Also some groups were no longer eligible for unemployment relief for example the youth service (RAD) also took the young off the unemployment register which came to 400,000 in 1934 and from 1935 conscription removed all 18 to 25 year olds males, who were required to do military for two years. The armed forces then grew from 100,000 in 1933 to 1,400,000 in 1939. Hitler appointed Hjalmar Schacht first as president of the Reichbank in March 1933 and then in August 1934 as Economics Minister. These appointments reassured the economic elite with whom Schacht has close links with. As President of the Reichbank he used Defectcit Financing to boost the economy. He also in particular pioneered the use of Mefo Bills to finance increased public expenditure without causing inflation. The latter was also prevented by government control on wages and prices. Hitler benefited from the ending of reparations payments arranged by Bruning Schacht also suspended debt repayments. The effort of these measures on the unemployment figures was striking and was welcome by most Germans.

In 1936 marked a major turning point in the Nazi economy. Hitler's initial policies had been clearly successful. Confidence was restored and unemployment has been reduced 1.6 million, so millions of Germans were benefiting. They now had to act on how to progress. Schacht, who had initially accepted the need for a large increase in public expenditure to reflate the economy and finance rearmament, was becoming increasingly concerned at the distortation of the economy due to rearmaments. Hitler got impatient with Schacht and replaced him with Goering and went on with the rearmaments in 4 September 1936. The planed aimed to ready Germany for war in four years so therefore Germany had to be more self-sufficient as possible in the food and industrial department this policy was known as Autarky.

The policy meant that Germany had to provide all for its self and it doesn’t need to be dependant on imports. It is very hard to achieve so Germany did not quite achieve this goal because it took 6 tons of coal to produce 1 ton of oil and by 1939 Germany still depended on foreign imports for one-third of its raw materials, especially iron ore, oil and rubber.  

Hitler was successful at recovering the economy of Germany from 1933-6 he did restore confidence as he promised and he was less successful at the rearmament of Germany in1936-9 because of the Autarky policy which was very hard or impossible to achieve because of his stress on military requirements this was a sign of radicalisation occurring in the regime. However, Hitler was unable to subordinate all other areas to the rearmaments drive as the tension between ‘guns and butter’ which means the tension between putting economic resources into armaments and supplying costumer goods.

Overall they were successful in their economics aims but it was affected by Hitler’s radicalism and fixations with preparing for an uncertain war.