The Effectiveness of Nazi Economic Policy (1933-1945)

Key Economic Objectives

Upon coming to power in 1933, the Nazis set three main economic objectives - firstly, to reduce unemployment; secondly, autarky - the aim was to make Germany self-sufficient; and thirdly, rearmament - to prepare Germany for future wars.

Unemployment and Public Works

The significance of the Dawes Plan and the Young Plan cannot be overstated. These plans, put in place before the Nazi’s rise to power, set the foundation for recovery from the Hyperinflation of the 1920s and the Wall Street Crash, respectively. Hitler continued them and used them to his advantage.
The construction of the Autobahn network, part of the public works programme, helped to significantly reduce unemployment. By 1935, unemployment had dramatically fallen from its peak in 1932.
The DOPA, German Labour Front, set up in 1933, also contributed significantly to employment increase. It provided benefits like holidays through ‘Strength Through Joy’ (KdF) and maintained wage control.

Autarky and Four-Year Plan

Hitler’s aim for self-sufficiency led to the introduction of the Four-Year Plan in 1936, headed by Hermann Göring. This plan aimed to reduce reliance on imports, increase raw material production, develop synthetic substitutes, and further accelerate rearmament.
Despite efforts, complete autarky was never achieved. By 1939, Germany was still importing 33% of its required raw materials.

Rearmament and Impact on the Economy

Massive resources were devoted to rearmament. Military spending increased rapidly, rising from 4% of the national income in 1933 to 23% in 1938.
Rearmament generated economic growth and reduced unemployment but, in the long run, it put a strain on the country’s finances.

Population and Consumer Impact

Policies such as Marriage Loans incentivised population growth, again in line with Nazi ideological beliefs. Women were also taken off the unemployment register once they got married, which helped ‘improve’ figures.
While employment rates increased, real wages in 1938 were still below those of 1929 when adjusting for inflation. Despite this, the average German’s living standard seemed to improve due to the psychological effect of widespread employment.

Overall Effects of Economic Policy

Nazi economic policy was successful in providing employment and revitalizing industry, but it was unsustainable in the long term due to its aggressive rearmament plans.
Autarky remained an elusive goal, though improvements were made.
The manipulation of statistical data also played a role in portraying the economy in a more positive light than it truly was.
By the start of World War II, the German economy was over-stretched and reliant on plunder from conquered lands to sustain its momentum.
The policies were partially influenced by ideology, particularly the focus on self-sufficiency and rearmament, but also pragmatism and the necessity for Hitler to maintain popularity among the population.