To what extent had the Nazis achieved an 'economic miracle' by 1939?

Reducing unemployment and stablising the economy after the 1924 hyperinflation crisis and the Wall Street crash of 1929 was a central theme to the Nazi party's political campaigns, and therefore it was imperative for the popularity and success of the regime that they be seen to deliver on their promises. By introducing the DAF and RAD and making labour a compulsory service through successive laws, they were able to reduce the unemployment figure from around 30% to under 1 million. Massive public works schemes, such as the construction of the Autobahns, established under Hjalmar Schacht, increasing the demand for workers and providing jobs in supporting industry. Such a reality likely seemed impossible in the later Weimar years, and so may be regarded as miraculous. However, if there was a 'miracle', it was illusory at best. Not unknown to forge statistics, the Nazis had excluded a significant number from the workforce by running their economic policy in tandem with the ideology. Women and Jews were progressively banned from certain professions and saw increasing limitations on their education, preventing their access to several fields such as law and medicine. The disabled and those imprisoned by the state were ignored, contributing to what has been termed the 'invisible unemployed', invalidating labour participation as evidence of a miracle.Moreover, although rearmament provided employment both within the military and its contractors, the Nazis stretched their economy beyond its capacity. The Mefo bills issued under Schacht amounted to little more than an idle promise by the time Poland was invaded, and imports continued to exceed exports, revealing a failure to achieve 'autarky'. The self-sufficiency and protectionism of Hitler and Goring led directly to the resignation of Schacht - far more of an economic expert than his superiors - and constrained the economic rather than boosting it. Businesses were heavily regulated, trade and banking interests harmed, state debts increased and wages frozen, amounting to little improvement in the lives of the workers and creating what would amount to severe problems in the long-term. The emphasis on the short-term and that the Nazis had to increase austerity measures, such as introducing rationing, as early as 1938 underlines the absence of any 'economic miracle' by the end of the decade.

AS
Answered by Aiden S. History tutor

4492 Views

See similar History A Level tutors

Related History A Level answers

All answers ▸

What's the best way to assess a source written by a historian in an exam?


How far do you agree that the main reason for the survival of Weimar government 1919–1923 was the weakness of its opponents?


“The most important factor in the Bolsheviks successfully consolidating their hold on power after the October Revolution was the ending of the war.”


Why did China 'fall' to Communism in 1949?


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences