Economic Development of Germany and Italy 5 Years Before and After World War II (1935-1950)

Economic Development of Germany and Italy 5 Years Before and After World War II (1935-1950)

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nIntroduction

nFrom the 1929, most European countries suffered from economic recession, which was caused by the Great Depression. Therefore, countries such as Germany and Italy experienced high rate of unemployment, huge debts, and inflation (Conradt and Langenbacher 2013). Consequently, these governments were unable to deal effectively with emerging issues in their economies. Ultimately, this facilitated change of regime in these countries (Hiden 2014). In Germany, the National Socialist Party of Germany (Nazi) led by Adolf Hitler took over power from 1933 aiming to promote economic recovery in the country (Adena et al 2015). The Nazi government introduced economic reforms with an objective of minimizing the rate of unemployment due to the Great Depression and World War I. Between 1932 and 1933; the Nazi government introduced economic policy, which encompassed management of exchange rates, expansion of financial policy and credit facilities (Stachura 2014). On the other hand, the National Fascist Party led by Mussolini Benito initiated a number of economic programs with an intention to boost the economy in Italy (Evans 2015). The paper will analyse the economic development of Germany and Italy 5 years before and after World War II.

nThe Economy of Germany in the First Five Year Prior to World War II

nPrior to election of Hitler 1933, the economy of Germany was experiencing many challenges because of the impacts of Great Recession. During this period, the rate of unemployment in the country was over 33 per cent, which meant that close to 6 million people were jobless (Adena et al 2015). Nazi regime and Hitler promised economic transformation by providing adequate jobs for all Germans. Schacht Hjalmar was appointed as the Minister of Economics who introduced a number of economic reforms. Most importantly, the Centrally Administered Economies (CAEs) was established. The CAE played a major role in reducing the rate of unemployment since it promoted formation of huge projects in public works. Consequently, the Germans were offered jobs irrespective of their productivity (Hiden 2014). Hitler accomplished significant economic transformation in his first five years in power. In this regard, the Germanys economy recovered tremendously. For instance, the joblessness in the country reduced from 6 million to less than half a million in 1939. During this period, other European countries were still struggling with deteriorating economies.

nIn the first five years of Nazi administration, the domestic income and productivity doubled. Research by Adena et al (2015) noted that the economic growth of the country was partly boosted by the rearmament policy that Hitler introduced. Many young people were employed in the military although women were not offered employment. In 1935, most of the Jews lost their jobs after Hitler revoked their citizenship. However, Nazi has initiated an economic policy, which enhanced public spending. In this regard, major projects were introduced such as super highways, and autobahns in the nation (Stephenson 2014).

nMoreover, social welfare programs towards the citizens such as standardized and cheap cars were provided. Specifically, the Nazi government ensured that every German was offered a Volkswagen (Stachura 2014). Moreover, Nazism controlled most robust scientific philosophy, which helped them to win many Nobel Prizes and international patents (Hiden 2014). Germany medicine and science were the most coveted across the globe at the time. There was also notable innovation in the other disciplines such as pharmacology, engineering, physics and biology. Similarly, the chemical agents that could be used in warfare were invented and advanced. Other industries also expanded under the Nazi regime (Adena et al 2015). For instance, aeronautic engineers formulated their first international airborne missiles. The engineering department was able to produce autobahns and other electronic products.

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nReferences

nHiden, J., 2014. Germany and Europe 1919-1939. Routledge.

nConradt, D.P. and Langenbacher, E., 2013. The German Polity. Rowman & Littlefield Publishers.

nEvans, R.J., 2015. Rethinking German History (Routledge Revivals): Nineteenth-Century Germany and the Origins of the Third Reich. Routledge.

nStachura, P.D., 2014. Gregor Strasser and the Rise of Nazism (RLE Nazi Germany & Holocaust). Routledge.

nAdena, M., Enikolopov, R., Petrova, M., Santarosa, V. and Zhuravskaya, E., 2015. Radio and the Rise of the Nazis in Prewar Germany. Available at SSRN 2242446.

nStephenson, J., 2014. Women in Nazi Germany. Routledge.