What influenced Nazi economic policy?
Due to Hitler's 25 point program (1920), the Nazis had appealed to small farmers (29% of the working population) and small traders. However, as Hitler became closer to power, he began shifting the focus of his economic policy to help large businesses. Most Socialist aspects in Hitler's economic policy originated in early 1933, with 12 billion Reichsmarks of peasant debt suspended between March and October 1933. The formation of the Reich Food Estate also guaranteed farmers steady prices for their produce. The Reich Entailed Farm Law (September 1933) forbade the sale, confiscation, division, and mortgaging of any farm between 7 and 10 hectares owned by Aryan farmers. The Law for the Protection of Retail Trade (May 1933) was a law aimed at protecting smaller businesses. However, these economic policies were overshadowed by the Nazi desire to fight a future war (the Nationalist aspect). Therefore, the main aim of the Nazi economic policy was to prepare the economy for war. This led to the concept of Wehrwirtshaft, a defense economy that would help Germany fight a future war. After 1936, the principle became more important, leading to a state regulated economic life. The idea of autarky (self sufficiency) soon led to the creation of large scale industrial farms, and the creation of over 1600 new cartel arrangements between 1933 and 1936.
In July of 1932, 6 million people in Germany were unemployed, and Germany's exports were lower than the 1928 level. To combat this, Hitler appointed Hjalmar Schacht, a non Nazi, as head of the Reichsbank to improve the economy.
In July of 1932, 6 million people in Germany were unemployed, and Germany's exports were lower than the 1928 level. To combat this, Hitler appointed Hjalmar Schacht, a non Nazi, as head of the Reichsbank to improve the economy.
Significant People
- Albert Speer
- Hjalmar Schacht
- March 1933: Appointed as president of the Reichsbank
- Non-Nazi but well respected by the business community
- June 1933: Passed a Law to improve unemployment
- Arbeitsdienst: government spending on public work schemes
- Subsidies for private renovation/construction
- Income tax rebates/loans to encourage industry