History, asked by krishna496, 1 year ago

How did hitler propose to bring about economic recovery in Germany

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Answered by sakshu2002
28
 Hitler had the finance to put the unemployed back to work. 
Mefo bills were issued to last for six months initially, but with the  provision for indefinite three-month extensions. The total amount of  mefo bills issued was kept secret. Essentially, mefo bills enabled the German Reich to run a greater deficit than it would normally have done. By 1939, there were 12 billion Reichsmark of mefo bills, compared to 19 billion of normal government bonds. This enabled the government to reinflate their economy, which culminated in its eventual rearmament.
At first, Schacht continued the economic policies introduced by the previous governments in 1932 to combat the effects of the Great Depression. The inherited policies included a large public works programs supported by deficit spending – such as the construction of the Autobahn network – to stimulate the economy and reduce unemployment. There was major reduction in unemployment over the following years, while price controls prevented the recurrence of inflation. However, price controls in agriculture also squeezed out small farmers.  Similarly, while unemployment decreased, standards of living  languished: rationing of key goods like food and clothing, and long  lines became common.
But there were other policies too, which resulted in the reduction in unemployment. 
Between January 1933 and 1939, a series of laws were introduced that made it effectively impossible for Jews  to work in Nazi Germany. Those that fled abroad in fear of their lives  left behind jobs that were filled. Those who remained in Germany simply  could not work and once again their previous employment was taken over  by ‘approved’ Germans. Over time, many women  were also excluded from many areas of work. Hitler had made it clear  where his beliefs were: women true to the Aryan race should stay at home  and look after children. This again reduced the unemployment rate. Another  ‘card trick’ was the introduction of compulsory military service for  young men. If you wanted to attend a university, for example, you had to  have done some form of either youth service or military training before  attending university. Once again, those who were engaged in compulsory  military service were removed from unemployment figures. The  final factor with regards to the huge drop in unemployment was fear –  anyone who was found guilty of being ‘work shy’ could be condemned to  the concentration camps that were found throughout Nazi Germany. People previously employed in what could be classed as professional employment  ended up doing manual labour on the autobahns, for example. If such a  job was refused, you could be accused of being ‘work shy’ with the known  associated punishments.
The massive rearmament programme and large public infrastructure projects, being labor intensive, helped in reducing the unemployment. Hitler also  introduced autarky and development of German agriculture by imposing tariffs on agricultural imports. But there is debate as to whether the standard of living of the Germans was better or worse than pre-depression period. Nationalization and cutting off trade meant rationing of key resources like poultry, fruit and clothing for many Germans. Private consumption was to be controlled by wage freezes, which became possible after Hitler destroyed trade unions in Germany. As the Nazi govt. debt increased, it tried to go for massive privatization. This achieved two purposes, namely, relief for the govt. from debts and bringing big business closer to the Nazi sphere of influence. From 1933 to 1937, Hitler’s government initiated a programme of selling off steel, mining, banking, local public utilities, shipyards and railways. Before 1930, these entities were predominantly nationalised, burdening the Weimar government with operational and debt related costs.
Selling majority shares or even the whole, Hitler created budgetary savings from the selloffs. One such example was Deutsche Reichsbahn, the largest public enterprise in the world. Hitler sold off the government share, a massive 224 million Reichsmarks. Vereinigle Stahlwerke A.G (United Steel) was re-organised by the Nazis, selling off the government share of 52% and reducing state ownership to 25%. In charge of the trust was Fritz Thysson, a strong supporter of the Nazi Party. 
The banking sector was also targeted by Hitler’s government for re-organisation. Before 1929, only 40% of banks were publicly owned. By 1934, the figure had risen to 70%. Hitler had reprivatized Deutsche Bank between 1935 and 1937. The government’s 57 million Reichsmark share of Golddiskontbank had also been sold off, back to Deutsche bank. Hitler’s capital creating machine sold off 57 million  Reichsmarks worth of the Commerce Bank by 1937, releasing the government’s burden of bank related operational expenses.
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Answered by cutelion
24
here is your answer okk
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