The problem: Germany had built an economy for rearmament extremely quickly. By 1939 Germany was spending too much on rearmament. There were shortages of food, consumer goods and raw materials which meant that rearmament was slowing down.

What were the Nazis options?

New Divider – last one! It will last three weeks

• How did WWII affect the popularity of the Nazis? – a question

• The economy – pre-war, war-time, Goering, Todt, Speer, successes and failures

• Morale of war – opposition and conformity • Repressing dissent and opposition • Persecution of the Jews • Creation of the Final Solution

Recap – the economy

• How did the Nazis approach the economy from 1933 to 1939?

• Organise by year...

• How far did the Nazis approach to the economy ensure the German people supported the new regime?

The Nazi Wartime EconomyC aim – to explain the economic causes of WWII and

the actions of Schacht and Speer B/A aim – to assess whether the economy caused WWII

and how effective Schacht and Speer were

The problem: Germany had built an economy for rearmament extremely quickly. By 1939 Germany was spending too much on rearmament. There were shortages of food, consumer goods and raw materials which meant that rearmament was slowing down.

How could taking over parts of Europe solve this problem?

Problem How taking over parts of Europe could solve this

Germany was spending too much on rearmament

Shortages of raw materials for rearmament, food and consumer goods

Labour shortages which meant wages were going up and costing more

Agriculture was suffering from labour shortages, price freezes due to shortages and declining dairy production which was the main source of fats

Exports were declining and imports were increasing for war production

Growing public deficit

Fear or popular unrest and people thinking of removing Hitler due to the pressure

Problem

So, do you think WWII occurred to overcome economic problems? Or was it planned for other

reasons? Or was it an opportunistic war?

• But...

– The evidence for these problems in the economy are based on eye witness reports

– Nazi reports show problems in 1939 but not a crisis – State controls on wages and prices were stopping inflation

which could happen from spending too much money on rearmament, so there was no need to go to war to stop rearmament

– Little evidence of social unrest – WWII produced an economic crisis as it became a large

scale war rather than a localised war – Hitler’s aims were more important for causing WWII

• C – Was there an economic crisis in 1939 and did this push Germany in to war?

• B/A - Considering the economic factors do you believe that WWII happened due to intentionalist (master plan) or structuralist (circumstantial) factors?

Goering and Hitler

• Hitler and Goering issued war decrees that focused all their resources and the economy to support the war effort.

• Look at table 14.1 green book.

• Read p. 336 green book and list the positive impact that Goering and Hitler had on the economy preparing for war.

• Goering faced serious problems. There were inefficiencies and Germany was still not producing enough. Eventually Todt tried to help when he became Minister for Armaments and Munitions in 1940 – he gave industrialists greater control over production and reduced military interference. Todt died in 1942 and Speer took over as Minister for Armaments and Munitions. Goering never lost his position, Speer just became more influential. Once Speer took over he rationalised the German economy. He co-ordinated it all and was a technocrat. In 1943, after the loss of the Battle of Stalingrad Goebbels gave his total war speech, from which the drive to strengthen the economy for war intensified – source 21.11 p. 418 pink book.

Faltering Goering and Speer’s solutionsUse pp. 414-417 pink book and 336-338 green book

to fill in this table. Economic problem that Goering was facing

Why was he facing this problem?

How did Speer solve this problem?

How well did Speer solve this problem?

Economic problem that Goering was facing which was preventing him from producing enough

Why was he facing this problem? How did Speer solve this problem? How well did Speer solve this problem?

Gauleiter empires – caused financial corruption

Lack of control over Gauleiters by Hitler – central meetings were just an opportunity for an audience, competing.

Threatened Gauleiters, got Hitler’s support against them Many Gauleiters stayed powerful.

Inadequate standardisation of equipment – different branches of the armed forces used different equipment and standards

No overseeing individual or someone with overall control. Hitler out of control. Competing senior Nazis.

Devoloped Todt’s industrial self-responsibility. Speer standardised equipment. Rationalised transport production – e.g. Only 3 types of lorry now allowed.

It was standardised and rationalised.

Production of non-essential goods Hitler’s vanity projects and people ignoring directives.

Speer banned resources being used for non-military uses. Ensured non-military metal was melted down for the war effort.

Much improved.

Prestige construction projects – Hitler obsessed with V1 and V2 rockets which never worked and effort wasn’t put into their best jet. Hitler encouraged grandiose public buildings.

Hitler’s style of dictatorship and no-one wanting to question him

Stopped construction of post-war projects. Much improved.

Inadequate mobilisation of Labour. Women not used.

Nazi ideology. Extended labour force, using women, more shifts, prisoners and Eastern Europeans.

Extended labour force, but skilled workers kept being conscripted.

Competing demands of different sections of the armed forces and the army interfering too much – they emphasised quality and not quantity

Intimidating and all-powerful military. Devoloped Todt’s industrial self-responsibility. Military had to submit requirments to Speer ‘s Central Planning Board with their number of supporting committees, who had the most accurate overseeing role of production. Industrialists had more freedom.

Much better.

Corruption and distorted figures Intimidating and all-powerful military. Devoloped Todt’s industrial self-responsibility. Military had to submit requirments to Speer who had the most accurate overseeing role of production. Speer punished inaccurate data.

Much better.

Political infighting - ministry of armaments, economy, finance, four year plan, SS bodies, armed forces and labour all competed over the economy and the best ideas.

Style of the Nazi dictatorship. Made his own ministry the most powerful by supporting Hitler.

Didn’t get his man as Labour Deployment Minister – instead Lammers got who he wanted. Haphazard developments of new offices – e.g. The Armaments ministry.

Shortages, bottlenecks, duplication and waste. Not producing as much as their enemies.

Many projects to prepare for war weren’t due to be finished until 1942, but war broke out in 1939.

Devoloped Todt’s industrial self-responsibility. Military had to submit requirments to Speer who had the most accurate overseeing role of production.

Improved – but not enough to catch up with others.

Anti-Semitism lost the Nazis their best Scientists and wasted rail resources

Nazi ideology. He didn’t. He didn’t.

• How did Speer improve the economy from 1942? (include the problems and solutions in your answer.

• How successful were these individuals? – Goering – Todt– Speer – pp. 338-340 green book.

• What does the war economy show you about Hitler’s style of dictatorship?

General – overcame bombing raids.

Main Events in the Economy

• Homework

• Read over the lesson and answer.

• To what extent did the Nazis meet the economic demands of war from 1939 to 1945? (30 marks)