Notes for Aims and results of policies: Hitler's domestic policies - economic policies - IB | RevisionDojo
Aims and results of policies: Hitler's domestic policies - economic policies Notes
Nazi economic policy cut unemployment from around 6 million in 1933 to near zero by 1939, boosting Hitler’s popularity and regime stability.
Economic Recovery and Employment
When Hitler took power in January 1933, unemployment stood at around 6 million; by 1939, Germany faced a labour shortage.
Recovery was partly due to measures already underway in late 1932, but the regime accelerated job creation through public works projects (Autobahnen, railways, housing, schools, hospitals).
The Reichsarbeitsdienst (RAD) became compulsory in 1935 for men aged 19–25, combining cheap labour with political indoctrination.
Conscription from 1935 and purges of “non-Aryans” and political opponents from the civil service also reduced official unemployment figures.
The policy of “Arbeit und Brot” (work and bread) was central to regime legitimacy, linking economic revival to national pride.
Schacht’s New Plan (1934–1937)
Led by Hjalmar Schacht, the plan prioritised reducing unemployment while preparing for rearmament.
Mefo bills covertly financed armaments without breaching Versailles openly, acting as a hidden currency for industry.
Public works linked to military needs, such as east–west Autobahnen, doubled as prestige projects to impress foreign and domestic audiences.
Schacht expanded state influence over private industry, aligning production with regime goals while leaving businesses in private hands.
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What was the unemployment situation in Germany when Hitler took power in 1933?
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Note
When Hitler assumed power in January 1933, Germany was grappling with a severe economic crisis. Unemployment stood at a staggering 6 million people, representing nearly 30% of the workforce. This economic hardship was a direct result of the Great Depression and the harsh conditions imposed by the Treaty of Versailles.
The economic situation was dire, with many families struggling to afford basic necessities
The Weimar Republic had failed to address these issues effectively, leading to widespread discontent
Hitler's rise to power was partly fueled by his promises to restore economic stability and national pride
AnalogyThink of Germany's economy at this time as a car that's completely broken down - not only is it not moving forward, but it's also losing parts (jobs) rapidly.
