As a result of this scheme Germany developed the most efficient road system in Europe.Īdolf Hitler also abolished taxation on new cars.
This was especially true of the government's massive motorway programme. The government also tended to give work contracts to those companies that relied on manual labour rather than machines. Employers also had to get government permission before reducing their labour force. The government banned the introduction of some labour-saving machinery. These policies often involved taking away certain freedoms from employers. However, the policies that Hitler introduced did help to reduce the number of people unemployed in Germany. He was lucky in that the German economy was just beginning to recover when he came into office. In the 1933 Election campaign, Adolf Hitler promised that if he gained power he would abolish unemployment. People began to say that if he was clever enough to predict the depression maybe he also knew how to solve it.īy 1932 over 30 per cent of the German workforce was unemployed. Hitler, who was considered a fool in 1928 when he predicted economic disaster, was now seen in a different light. With the drop in demand for labour, wages also fell and those with full-time work had to survive on lower incomes. Even those in work suffered as many were only working part-time. By the end of 1930 the figure had reached nearly 4 million, 15.3 per cent of the population. Germany, whose economy relied heavily on investment from the United States, suffered more than any other country in Europe.īefore the crash, 1.25 million people were unemployed in Germany. One of the consequences of this was a rapid increase in unemployment. Desperate for capital, the United States began to recall loans from Europe. The fortunes of the National Socialist German Workers Party changed with the Wall Street Crash in October 1929. The German people gradually gained a new faith in their democratic system and began to find the extremist solutions proposed by people such as Adolf Hitler unattractive. By 1928 unemployment had fallen to 8.4 per cent of the workforce. These policies were successful and by the end of 1924 inflation had been brought under control and the economy began to improve. Promises were also made to provide Germany with foreign loans.
The report proposed a plan for regulating annual payments of reparations and the reorganizing the German State Bank so as to stabilize the currency. Some politicians in the United States and Britain began to realize that the terms of the Versailles Treaty had been too harsh and in April 1924 Charles Dawes presented a report on German economic problems to the Allied Reparations Committee. By November, 1923 this had changed to 4,200,000,000,000 marks to the dollar. In January, 1921, there were 64 marks to the dollar. After the First World War Germany suffered from inflation.
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