ABSTRACT

This chapter outlines the job creation measures initiated by Papen's government, but particular attention deserves to be paid to the introduction of tax credits. As this was matter of indirect provision of employment, it might be assumed that major industrial interests lay behind this policy. As Papen's own statements underline, the government's work creation measures were intended to have a socially balancing effect and to deprive the political left in particular of the objective basis for their arguments. The work creation programme adopted in September, like its July precursor, was already being nullified in its effects at the planning stage by other government economic policies; the government wanted to increase various taxes and limit expenditure. The 'Government's Draft Economic Programme' of 28 July, which already contained significant aspects of Papen's 28 August Munster programme speech, is the actual turning-point in the Papen Cabinet's economic policies.