‘Guns not Butter’  [EFICS]

1.   Employment

•      In June 1933, the Nazis passed a Law to Reduce Unemployment.

•      The RAD (National Labour Service) sent men on public works; eg the autobahns.

•      Government spending rose, 1932–38 from about 5 billion to 30 billion marks.

•      Unemployment fell from nearly 6 million to virtually nothing.

•      Hitler built up the armed forces (e.g. conscription took 1 million unemployed).

•      The soldiers needed equipment, so this set steel mills, coal mines and factories back into production. The Luftwaffe gave jobs to fitters, engineers and designers.

•      The Nazi state machinery needed thousands of clerks, prison guards etc.

2.   Farming

•      By the 1933 Farm Law, farmers were assured of sales and given subsidies.

•      The government kept food prices at the 1928 level.

•       BUT farmers were organised into the Reich Food Estate and strictly controlled (e.g., one rule stated that hens must lay 65 eggs a year).

3.   Industry

•      The New Plan of 1934 stopped imports, and subsidised industry.   This is called 'Autarky' - the belief that Germany should be self-sufficient.

•      Production rose, especially of oil, steel, coal and explosives.

•      In 1936, Goering was put in charge. His Four Year Plan proposed to get the army and industry ready for war in four years.

•      Employers were happy when workers were well disciplined.

•      BUT businesses were strictly controlled; they could be told to make something different/ were not allowed to raise wages/ workers could be sent to other factories.

•      Goering said: ‘Iron makes an empire strong; butter only makes people fat’.

•      Economists know now that these policies cause massive economic problems.

4.   Conditions

•      The Nazis tried to make people proud (e.g. the film The Beauty of Work in 1934).

•      BUT trade unions were banned and all workers had to join the German Labour Front. They lost their right to strike for better pay and conditions.

•      Wages actually fell.

•      People who refused to work were imprisoned.

•      Wages and conditions on the RAD schemes were very poor.

5.   Strength through Joy (KdF) Movement

•       Workers were offered cut-price holidays, theatre trips and concerts. In Berlin, 1933–38, the KdF sponsored 134,000 events for 32 million people (2 million went on cruises & weekend trips, and 11 million on theatre trips).

•      The KdF designed the Volkswagen (or ‘People’s Car’) ‘Beetle’, which it was planned to be able to buy for 5 marks a week.

•      The government made sure that everybody could get a cheap radio.