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Autarky – a self-sufficient economy

     

Hitler aimed to make Germany self-sufficient (‘Autarky’). A 4-Year Plan (1936) was introduced, first by , then , but it failed.

The Nazis revived the economy through govt spending (e.g.12bn Reichsmarks in rearmament via ‘’ bills).

Promises like rebuilding Berlin & providing Volkswagens or swimming baths were unfulfilled.

By 1939, inflation rose, creating a financial crisis. Historian Tim Mason argued Hitler went to war to mask economic problems.

   

1. Employment

    •  Law to (1933) created jobs through the RAD (autobahn construction, housing, environmental work).

    •  Govt spending rose (1932–38: 5bn–30bn marks).

    •  Unemployment dropped from 6m to near zero.

    •   (e.g. conscription, army supplies) boosted steel, coal, and factory work.

    •  Nazi state jobs (e.g. clerks, prison guards) expanded.

    •  Jews sacked from jobs → created employment for others.

2. Farming

    •  1933 gave farmers subsidies & guaranteed sales.

    •  Govt kept food prices at 1928 levels.

   BUT:

    •  Reich Food Estate controlled farmers (e.g. rules like hens laying 65 eggs/year).

3. Industry

    •   (1934) stopped imports & subsidised industries, boosting oil, steel, coal & explosives.

    •  By 1941, 2,400 miles of built (+1,550 under construction).

    •  4-Year Plan (Goering, 1936) focused on rearmament.

    •  Employers liked worker discipline.

   BUT:

    •  Strict controls on businesses (e.g. production directives, wage restrictions).

    •  By 1939, focus shifted to ‘guns not butter’ (military over consumer goods).

4. Conditions

    •   ‘’ (SdA) → pride in work.

    •  Health campaigns (e.g. anti-smoking, breast cancer screening).

   BUT:

    •  Trade unions ; workers had to join the German Labour Front.

    •  No strikes allowed; strikers could be shot.

    •  Wages fell; RAD scheme pay & conditions were poor.

5. Strength through Joy (KdF) Movement

    •  KdF provided leisure (e.g. cut-price holidays, cruises, concerts, theatre). From 1933–38 in Berlin: 134k events for 32m attendees.

    •  2m people went on cruises/ weekend trips; 11m on theatre trips/ Holiday centre

    •  Designed the (‘Beetle’) for 5 marks/week.

    •  Govt ensured access to cheap radios.