AQA · A-Level · History
Course version: 7042 · Version from Sept 2017
Germany, 1918–1945 – The Nazi Dictatorship, 1933–1939 (A-level only):…
Full specification wording
2O Democracy and Nazism: Germany, 1918–1945 – The Nazi Dictatorship, 1933–1939 (A-level only): Economic policies and the degree of economic recovery; Schacht; Goering; the industrial elites
Nazi economic policies shifted from recovery to rearmament.
Checked against the AQA 7042 specification (opens in a new tab) on .
- Point 3 of 4
Study notes
From the checked teaching notes for this specification point.
The idea
Nazi economic policies shifted from recovery to rearmament. Hjalmar Schacht’s 1934 'New Plan' used deficit financing via Mefo bills and bilateral trade to reduce unemployment. His reluctance to accelerate rearmament led to his replacement by Hermann Goering. Goering’s 1936 Four Year Plan prioritised autarky and rapid military expansion. Industrial elites, like IG Farben, cooperated extensively, benefiting from smashed trade unions and state contracts despite increasing regulation. The degree of economic recovery was mixed; while unemployment fell drastically, this involved statistical manipulation (excluding women and Jews), and living standards stagnated as resources were diverted to the military.
What earns the marks
- Evaluate the success of Schacht's New Plan in stimulating job creation and managing foreign exchange.
- Analyse the shift in economic priorities marked by Goering's Four Year Plan and the drive for autarky.
- Assess the symbiotic but unequal relationship between the Nazi state and industrial elites like Krupp.
- Critically examine the 'economic miracle', noting the role of statistical manipulation in unemployment figures.
Common mistakes and how to put them right
Claiming unemployment was solved entirely by Nazi policies.
Put it right: Acknowledge that recovery began under Weimar and figures were manipulated by removing women and Jews from the register.
Stating that autarky was fully achieved.
Put it right: Explain that Germany still relied heavily on imports for key raw materials like oil and rubber by 1939.
Assuming industrial elites were completely controlled by the state.
Put it right: Note that while regulated, elites retained private ownership and actively profited from rearmament.
Exam tips
- Contrast Schacht's focus on balanced recovery and export trade with Goering's aggressive push for rearmament and autarky.
- Use specific examples of industrial elites, such as IG Farben or Krupp, to illustrate big business cooperation.
- When evaluating the 'degree of recovery', distinguish between macroeconomic growth and the actual living standards of ordinary Germans.
Try the lesson
The start of the 2O Democracy and Nazism: Germany, 1918–1945 – The Nazi Dictatorship, 1933–1939 (A-level only): Economic policies and the degree of economic recovery; Schacht; Goering; the industrial elites lesson, made from checked teaching notes for this specification point.
Have a go first
What was the primary focus of Hjalmar Schacht's 'New Plan' introduced in 1934?
Listen
Nazi economic policies shifted from recovery to rearmament. Hjalmar Schacht’s 1934 'New Plan' used deficit financing via Mefo bills and bilateral trade to reduce unemployment. His reluctance to accelerate rearmament led to his replacement by Hermann Goering. Goering’s 1936 Four Year Plan prioritised autarky and rapid military expansion. Industrial elites, like IG Farben, cooperated extensively, benefiting from smashed trade unions and state contracts despite increasing regulation. The degree of economic recovery was mixed; while unemployment fell drastically, this involved statistical manipulation (excluding women and Jews), and living standards stagnated as resources were diverted to the military. A strong answer earns marks for these points. Evaluate the success of Schacht's New Plan in stimulating job creation and managing foreign exchange. Analyse the shift in economic priorities marked by Goering's Four Year Plan and the drive for autarky. Assess the symbiotic but unequal relationship between the Nazi state and industrial elites like Krupp. Critically examine the 'economic miracle', noting the role of statistical manipulation in unemployment figures. A common slip: Claiming unemployment was solved entirely by Nazi policies. Instead, acknowledge that recovery began under Weimar and figures were manipulated by removing women and Jews from the register. Exam tip: Contrast Schacht's focus on balanced recovery and export trade with Goering's aggressive push for rearmament and autarky.
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