Who Benefitted from Nazi Rule? | History for GCSE/IGCSE - Year 11 PDF Download

How Did Living Standards Change in Nazi Germany? - Summary

• Unemployment played a significant role in Hitler's rise to power during the Great Depression. The Nazi Party's promise to restore Germany's greatness resonated with many disillusioned citizens, leading to increased support for Hitler. To fulfill his goals of bolstering armament production and enhancing infrastructure, Hitler needed to address unemployment.
• By 1939, Hitler and the Nazis had ostensibly reduced unemployment to minimal levels, ostensibly demonstrating the success of their employment policies. However, certain groups were excluded from official employment statistics, leading to a phenomenon known as invisible unemployment, which meant that actual unemployment rates were much higher than reported.
• In addition to reducing unemployment, Hitler sought to improve workers' morale and happiness. The Nazi regime provided cultural and entertainment opportunities, such as theatre performances and sports events. Work facilities were upgraded to enhance morale and productivity. While wages generally increased during the 1930s, so did working hours.
• Although many workers experienced improved living standards under Nazi rule, others struggled due to rising food prices that outpaced their earnings.

Businesses under Nazi Rule

Impact of the Nazi Regime on Businesses

Workers under Nazi Rule

The Labour Front (DAF)

• Hitler harbored a disdain for trade unions because he believed they aligned with left-wing political factions, such as the Communist Party, and orchestrated worker strikes that disrupted the economy. 
• Utilizing the authority granted by the Enabling Act in May 1933, Hitler outlawed all trade unions. In their place, he established the Labour Front (DAF), which assumed control over workers' rights, working hours, and wage levels.

• Recognizing that the abolition of trade unions would provoke resentment among workers, the Nazis introduced separate entities within the DAF to enhance living standards. 
  • These organizations included "Strength Through Joy" and "Beauty of Labour."

Strength Through Joy

• In 1933, the Nazis founded Strength Through Joy (KdF) with the objective of fostering a more pleasant work environment and curbing potential unrest. 
• By 1936, KdF boasted a membership of 35 million individuals. 
• It offered unemployed workers recreational pursuits, excursions, and vacations.

• The KdF implemented a program allowing workers to acquire a new car:
• The Volkswagen, dubbed the 'people’s car,' was a cost-effective and fuel-efficient vehicle.
• KdF members contributed five marks per week from their earnings with the expectation of eventually obtaining a Volkswagen.
• However, car factories transitioned to manufacturing armaments after 1938, resulting in workers never receiving their promised Volkswagens.

Beauty of Labour

• The Nazis initiated the Beauty of Labour (SdA) program in 1934:
• The SdA was designed to enhance the working environment by offering improved facilities for workers.
• These facilities included amenities like toilets, changing rooms, showers, and canteens.
• By 1938, approximately 34,000 companies had upgraded their facilities under this program.
• Workers were expected to construct and embellish the new facilities themselves, without receiving additional compensation, and outside of their regular working hours.

Impact of the Nazi Regime on Workers

Farmers under Nazi Rule

Impact of the Nazi Regime on Farmers

The Unemployed under Nazi Rule

• Approximately six million Germans were unemployed by 1932 as a result of the Great Depression. When Hitler assumed the position of Chancellor in January 1933, the number of unemployed individuals stood at five million. The Nazi Party prioritized the reduction of unemployment due to several reasons:
  • Unemployed workers could potentially support other political groups such as the KPD (Communist Party).
  • They were not actively contributing to society or the economy.
• By 1939, the Nazi Party had successfully decreased unemployment to approximately half a million people:

Decreasing Unemployment in Nazi Germany

• The Nazis created a number of policies to reduce unemployment

National Labour Service (RAD) 

• Established in 1933, this initiative offered employment opportunities for the unemployed:
• Workers were engaged in public works projects like road repairs and tree planting, receiving wages for their labor.
• Starting from 1935, unemployed young men aged 18 to 25 were mandated to join for a six-month period.
• However, the compensation was meager, and numerous workers expressed grievances regarding the quality of food, obligatory uniforms, and working conditions.
• In 1935, the organization boasted a membership of 422,000 individuals.

Autobahns 

• The Nazis initiated the construction of an extensive autobahn (motorway) system spanning approximately 11,000 kilometers to enhance transportation throughout Germany:
• Hitler personally launched the project in September 1933, and by 1935, it had employed 125,000 workers.
• By 1938, around 3,500 kilometers of the autobahn had been completed.
• Additionally, the Nazis financed various other public infrastructure projects in Germany, including roads, bridges, and sports facilities like the Berlin Olympic Stadium.
• Spending on these public works increased significantly, more than doubling from 18 billion marks in 1933 to 38 billion marks in 1938.

The New Plan

• Hitler appointed Dr. Schacht as Minister of the Economy due to his esteemed reputation as a banker and his prior success in resolving the hyperinflation crisis of 1923. Schacht was entrusted with the critical objectives of reducing unemployment and revitalizing Germany's economy in the aftermath of the Great Depression.
• In 1934, Schacht introduced the New Plan, which entailed several key components:
  • Reduction of welfare spending.
  • Strategic investment in industrial development.
  • Establishment of trade agreements with other nations, such as Hungary.
• By 1936, the implementation of the New Plan resulted in significant economic recovery and a notable reduction in unemployment rates.

Rearmament

• Hitler pursued the expansion of the military for several reasons:
  • To restore Germany's national pride.
  • To strengthen Germany's military might.
  • To generate employment opportunities for the unemployed.
• The terms of the Treaty of Versailles imposed strict limitations on Germany's military, restricting the army size to 100,000 soldiers. However, Hitler disregarded these restrictions and announced conscription in 1935.
• By 1939, the German armed forces had grown to approximately 1.4 million men. Accompanying the military expansion, the Nazis required increased production of weapons and armaments to support their larger army.
• Spending on armaments surged from 3.5 billion marks in 1933 to 26 billion marks by 1939. Employment in aircraft construction similarly soared from 4,000 individuals in 1933 to 72,000 individuals by 1935.

Invisible Unemployment

Invisible unemployment denotes individuals lacking full-time employment but not accounted for in official unemployment metrics.

• Nazi Germany excluded numerous individuals from their employment data.
• Employment schemes aimed at addressing unemployment were deemed too costly to be sustained as long-term policies.
• A concentration on rearmament generated employment opportunities primarily when Germany was gearing up for war.