CAMBRIDGE A2 HISTORY: HITLER'S ECONOMIC CHANGES AND SOCIAL IMPACT. Suitable for Year 13 Cambridge History students.

1. HISTORY CAMBRIDGE A2 (PAPER 4)
PRESENTATION 11
HITLER MODULE
3. ACHIEVING DOMESTIC AIMS UP TO 1941
HITLER’S
ECONOMIC CHANGES
AND SOCIAL IMPACT

2. ECONOMIC MIRACLE?
Between February 1933 and the start of World War Two, Nazi Germany
underwent an ‘economic miracle’ – or so the leaders of Nazi Germany
wanted their people to believe.
Not only was the idea of an economic miracle sold to the people of
Germany, the propaganda element also wanted the idea sold to Europe
and to the wider world.
But was there really an economic miracle in Nazi Germany or was it a card
trick – one that appeared to happen but really did not?

3. JOB CREATION?
Using the most basic of statistics, Nazi Germany certainly underwent
major economic change. Like most other countries in Europe, Weimar
Germany had suffered from a very high unemployment record and Nazi
Germany inherited this.
By the time World War Two started the unemployment rate in Germany
had tumbled: trade unions had been tamed, the work force had
seemingly developed a positive work ethic and job prospects were better
– on paper at least. But when certain data is factored into the equation,
the issue of job creation is not quite as clear cut.

4. JEWS AND WOMEN
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.

5. WORK ETHIC
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. While Hitler
frequently referred to the “economic miracle” of Nazi Germany, people
previously employed in professional employment ended up doing manual
labour on the autobahns. If such a job was refused, you could be accused of
being ‘work shy’ with the associated punishments.

6. HITLER AND UNEMPLOYMENT
Therefore, when the above is taken into account, it is true that
unemployment figures tumbled. In 1932, in the dying days of the Weimar
Republic, 5.6 million people were unemployed – many of whom gave
their support to the Nazi Party as the only party that offered them hope.
By 1934, this figure had fallen to 2.7 million – a seemingly impossible
decrease. By 1936, only 1.6 million people were unemployed and by 1938
the figure was 0.4 million. Therefore in five years, unemployment had
fallen by 5.4 million – 96%.
No other west European country came anywhere near this figure – hence
why it was labelled a “miracle”. Possibly the only surprise in this is that
400,000 remained unemployed.

7. THE WAR ECONOMY
Another issue that has to be studied to explain this ‘economic miracle’ is
the simple fact that Hitler put Nazi Germany onto a war economy much
earlier than the September 1939 outbreak of war.
From 1935 on, a huge proportion of government spending was on the
military. Therefore labour intensive industries such as steel production and
coal mining prospered as there were needed in very large amounts to fuel
the expansion of the military. In 1933, Krupp’s made a profit of 6.65 million
Reichmarks.
In just one year this had nearly doubled to 11.40 million Reichmarks. By
1937, the company had an annual profit of 17.80 million Reichmarks.

8. THE PRODUCTION OF CONSUMER GOODS
In 1933, Germany spent just 3% of her GDP on the military. By 1939, this had
grown to 32% and 22% of the work force was directly employed in an industry
somehow associated with military production.
However, the production of consumer goods was not ignored – on the orders of
Hitler. He wanted the German people to believe that they themselves were
directly benefitting from the ‘economic miracle’ that he had fostered.
For this reason there was a steady increase in consumer goods as 1939
approached, which continued into World War Two. It led to one unnamed
general stating that Nazi Germany had to fight the war with refrigerators.

9. DEBATING THE ECONOMIC MIRACLE
If Nazi Germany underwent an ‘economic miracle’ then a logical
assumption was that the workers themselves benefitted in material
terms. Many had employment under Hitler – but few dared to refuse what
was offered.
In fact if the figures are analysed in terms of the wages paid, workers were
worse off under Hitler than they had been before the Wall Street Crash.
1934 was the only year from 1933 to 1939 when the wages paid to the
workers equalled what an employed person earned in 1928. Other than
this year, in every other year they got paid less. So while there was a
steady increase in the production of consumer goods, how many workers
could afford them? When compared to workers in America, the UK,
Sweden and France, workers in Nazi Germany were paid the least.

10. MIRACLE OR NOT?
However, in the area of imports/exports, Nazi Germany did quite well. In
1933, 1935, 1936 and 1937 there was a trade surplus while the annual
trade deficit of 1934 and 1937 were relatively small.
However, whether Nazi Germany experienced an “economic miracle”
depends on what stance you make. Was it merely a card trick whereby
industry was mainly stimulated by the vast growth in the requirements of
the military?
Was it an “economic miracle” that the unemployment figures fell so
drastically when groups were excluded from the data and others forcibly
made to work in areas they were not trained for?

11. HERE IS THE TIMELINE FOR ECONOMIC
CHANGES
AND THEIR SOCIAL IMPACT

12. MEASURES TO REDUCE UNEMPLOYMENT
Unemployment was a major problem in Germany, with at least 6 million
Germans unemployed. During the 1932-33 election campaigns Hitler had
promised the people Work and Bread. Hitler’s intentions were to:
1. Reduce unemployment
2. Create jobs through rearmament (avenge the Treaty of Versailles and
prepare to expand Germany)
3. Create an economically self-sufficient Germany (Autarky).
The person responsible for implementing these ideas was financial expert
and President of the Reichsbank, Hjalmar Schacht. He was sacked in 1936,
and Herman Goering replaced him, with the Four Year Plan (1936-40).

14. THE NATIONAL LABOUR SERVICE
The previous government had started many work schemes to reduce
unemployment. One of these schemes was the Reichsarbeitsdienst (or
the RAD, Reich Labour Service). In July 1935 the Reich Labour Service Act
was passed, which forced every man aged between 18 and 25 to:
– complete 6 months training at the RAD
– wear military uniform and live in camps
– receive pocket money only (no wages)
– do military/physical exercise every day.
The RAD's work included:
– planting forests
– digging ditches on farms

15. MOTORWAYS AND REARMAMENT
June 1933 - The Unemployment Relief Act
– Build a network of motorways (Autobahn) and build hospitals
All this work was done manually, so more workers were needed. This
meant it would take more time to do the work and created work for
80,000 over the following five years. Rearmament created new jobs -
manufacturing arms, supplying raw material and manufacturing military
equipment, eg tanks and submarines. The intention was:
– to increase the army from 100,000 to 300,000
– to increase the navy and the number of submarines
– to construct two battleships
– to increase the air force

16. BACKGROUND
Remember that the Treaty of Versailles had prohibited all this, but from
1935 onwards Germany was openly rearming – every man aged between
18 and 25 had to spend two years in the armed forces. The effect was:
– 1933 – 100,000 members in the armed forces
– 1939 – 1,400,000 members
The majority of Germans were glad to get secure and fairly safe jobs.
Industrial workers had regular work, although they had lost their rights.
Whilst large businesses were prospering, small businesses and the middle
classes were squeezed out of the market. The government provided aid to
farmers, told them what they should grow and how much to grow, and
dictated their prices. The economy grew as the country prepared for war
and rearmament.

17. THE RESULT: A REDUCTION IN UNEMPLOYMENT
By 1939 there were fewer than 350,000 people unemployed. The SS would
persecute the unemployed, calling them ‘lazy’. But, who weren’t included
in these statistics? Women, Jews and Men aged 18-25
(conscription/military service for two years).
In order to be economically self-sufficient, Germany searched for artificial
ingredients to replace things like oil, rubber, textiles and coffee. This was
not a success. Agriculture suffered due to a shortage of workers and
machinery. Germany continued to import a lot of goods such as butter, oil
and vegetables. In 1939, it was importing 33 per cent of its raw materials.
There was a shortage of food in Germany.

18. TRADE UNIONS AND THE DAF
Workers’ trade unions ensure that workers get fair wages and working
conditions. Hitler didn’t like trade unions. He believed that they
supported socialism and communism. Trade unions were banned in
Germany in May 1933. Their money was taken away from them. Their
leaders were arrested. The German Labour Front was established in their
place, or the DAF. Every worker in Germany was now a member of the
same trade union, which was controlled by the Nazis. The DAF managed
discipline, wages and working hours. Results:
– Working hours were increased
– Wages were frozen
– It was impossible to show disapproval about this

19. STRENGHT THROUGH JOY MOVEMENT (KdF)
The workers had to be kept happy, and the Strength through Joy
Movement, or the KdF, was established to provide workers with leisure
opportunities. It was a popular movement which developed into a
business company.
Through the KdF the state was able to control the individual, got
everyone to conform and managed their leisure time. It was a way of
removing social barriers. In the past, only the rich could afford a holiday.
The purpose of the KdF:
– To support the Führer and thank him
– To keep everyone happy after abolishing the trade unions

20. KdF ACTIVITIES
– Cheap cruise holidays and travel opportunities
– Building health clubs and organising coach trips
– Trips to the theatre/cinema
– Skiing/sailing or sports
Dr Robert Ley was in charge of the KdF, and one of its popular schemes
was the Volkswagen - the people's car. It was possible to pay for the car in
instalments, and the buyer would only receive the car after they had paid
the balance in full. When the Second World War started in 1939, the car
factories had to turn their attention to manufacturing arms. As a result,
many Germans lost their money, and there were demonstrations against
Ley.

22. THE TREATMENT OF WOMEN AND YOUNG PEOPLE
During the Weimar Republic, women:
– received a high standard of education
– could earn good wages in good jobs
– could vote
All this changed during the reign of the Third Reich. Only men had the
right to make decisions. The three Ks were:
– 1. Kinder – children
– 2. Kirche – church
– 3. Küche – kitchen
There was a great deal of propaganda celebrating the image of the
mother and the family unit. German women were not allowed to
wear make-up and couldn't colour or perm their hair.

23. THE UNEMPLOYMENT RELIEF ACT, 1933
Provided a matrimonial loan of 1,000 Reichsmark when a couple got
married on the condition that:
– the wife had been in a job for 6 months and would leave that job
– the husband didn't earn more than 125 Reichsmark per month.
If the married couple had four children, they could keep all the
money they had borrowed. Result – more couples married young, but
the average family had two children.
On 12 August 1938, which was Hitler's mother's birthday, the
Mother's Cross was awarded to women who had given birth to many
children.

24. LEBENSBORN
It was against the law for healthy mothers to have an abortion. Lebensborn
was established in 1936, where members of the SS could meet an Aryan girl
with the aim of increasing Germany's Aryan race. Law for the Prevention of
Hereditarily Diseased Offspring: sterilising women who were 'unsuitable' to
have children, eg non-Aryan women. Every women’s society in Germany was
abolished and merged as one under the German Women's Enterprise, which
was controlled by the Nazis. Its work was to organise Mother Schools, to
train women in how to be parents and housewives.
– 1921 – women banned from having jobs in the Nazi party
– 1933 – no women in professional posts, eg doctors, solicitors, civil servants
– 1936 – no women as judges, prosecutors or members of a jury (as women
were controlled by emotion)

25. CONTROLLING EDUCATION
Up until 1933, the provincial governments were responsible for the
majority of schools. When the Nazis came to power, Berlin's Minister of
Education, Bernhard Rust, became responsible for education in
Germany. Every pupil had to stay in school until he or she was 14 years
old, then it was optional. There were separate schools for girls and
boys. The number of Physical Education lessons doubled, but Religious
Education was abolished.
Conditioning – every subject was presented from a Nazi perspective.
Textbooks were re-written. History books emphasized Germany's
military success. Jews and Communists were blamed for the Recession.

26. THE AIM OF EDUCATION
The aim of education was to:
– separate Jews from other children
– encourage hatred towards the Jews
– prevent Jews from getting an education
The scheme was a success. Jews would be portrayed as bad, ugly and
selfish people in textbooks and children’s stories. Books such as The
Poisonous Mushroom warned German children against the Jews. By the
time children were 8 years old, they strongly believed that Jews were
bad people. In Biology lessons, children would learn about the features
of the Supreme Race, or the Aryans.

27. THE NAZI TEACHER ALLIANCE
The Nazi Teachers' Alliance – every teacher had to be a member of the
Nazi Teachers Alliance. Pupils were encouraged to tell the authorities if
their teachers didn’t teach them the new curriculum.
– Bernhard Rust: The Minister for Education
– Book-burning ceremonies, 1933: getting rid of ideas that didn't correspond
with Nazi ideology
– Teachers: members of the Nazi Teachers' Alliance
– Timetable: physical education, history, geography, German, biology
– Lessons: Nazi ideology – conditioning
– Special schools: to prepare future leaders
– Education before 1933: controlled by the provincial governments
– The Nazis' objectives: to prepare for the future – a thousand years

28. THE HITLER YOUTH MOVEMENT
The young people of Germany were important to the Nazis if they wanted
the Third Reich to last for a thousand years. As was the case with the
adults, the Nazis wanted to control the young people’s leisure time.
1925 – The Hitler Youth Movement established
1932 – Membership: 108,000
1936 – Hitler Youth Act passed, giving the movement the same status as
the home and the school. It was difficult to avoid being a member of the
Hitler Youth Movement. Parents would not be able to get a promotion at
work unless their children were members.
1939 – Membership: 8 million

29. ACTIVITIES OF THE HITLER YOUTH MOVEMENT
Boys
– Military skills
– Shooting
– Map reading (preparing to be future members of the armed forces)
Girls
– Mothers
– Nothing academic