Schacht’s Running of the German Economy

769 Words2 Pages

Schacht’s Running of the German Economy In 1933 many problems faced Germany economically, the Nazi party’s main aims were to tackle the serious depression and sort out Germany’s rising unemployment. Germany has poor economic and social organization, Hitler wanted to sort this out so Germany’s economy was geared for War. Another problem was the need to balance deficit payments, the economy needed to recover to increase demand for consumer goods and too bring around re-armament through increased demand of raw materials. The World’s high value market was protectionist and made it hard to increase exports at the time. There was a very real danger of inflation as there was already a growing demand for more money and products. Protectionist trading meant that countries would only trade in there own currency, Germany did not have this foreign currency. Hitler’s priorities were to create more jobs, by starting programs of building homes and motorways for example in 1932, this work was paid for by the state. This all created another problem that I mentioned above, balance of trade deficit. Germany was exporting more than it was importing, in 1934 a new plan was launched that allowed the government strong powers in regulating imports and regulated foreign exchange. The man responsible for this ‘New Plan’ that helped overcomes the immediate trade problem. Schacht was the person whom Hitler put in charge of running the economy in 33, he was once the director of the National Bank in 1916, and in 1923 he was President of the Reich bank. After reading Mein Kampf, he saw Hitler was a savior, he generated funds for the Nazi party, and became as I mentioned economics minister in 1934. Tax concessions to the workers, meant more people wanted to work in these environment. Hitler opened up the unions to any members; this meant that the economy was stimulated by worker independence and confidence. Hitler extended a lot of public work schemes such as in 1932 the building of homes and motorways. As there were now subsidies for hiring more workers in the private sector, this opened up jobs as

Open Document