Nazi Economic Policy and Social Structure: Overview and Implications

I. Nazi Economic Policy

  • Early populist protectionism

    • Focused on supporting farmers and small businesses.
    • The 25-point plan (1920) was pro-farmer and pro-small business.
    • Despite this, Hitler also reached out to big businesses and the middle class.

  • Key Policies

    • 1933: Peasant debts were suspended to relieve financial burdens on farmers.
    • High tariffs were imposed on imported food to protect local agriculture.
    • The Reich Food Estate guaranteed farm prices, providing stability for the agricultural sector.
    • The Reich Entailed Farm Law protected small Aryan-owned farms from being sold or lost.
    • The Law for Protection of Retail Trade banned the establishment of new department stores, favoring small retail businesses.

II. Wehrwirtschaft (War Economy)

  • Characteristics

    • Focused on achieving economic self-sufficiency (autarky)
    • Managed cartel-based economy, with strong government oversight.
    • Significant rearmament efforts initiated.
    • Close relationships developed between industrialists and the Nazi government, especially with companies like:
    • Krupp (arms/steel manufacturing)
    • I.G. Farben (chemical production)
    • By 1937, 70% of farmland was monopolized, indicating heavy industrial control over agriculture.

  • Historical Perspectives

    • Historian Bracher noted a lack of a consistent economic or social theory guiding Nazi policy.
    • Hitler believed that “the decisive factor is… performance,” emphasizing results over ideology.
    • The concept of “Guns vs. Butter” addressed the need to balance military spending with consumer goods.

III. Job Creation Plans

  • Policies Implemented
    • In June 1933, a law was passed promoting government spending on public works projects to stimulate employment.
    • Subsidies were provided for private construction initiatives.
    • A pro-industry tax and loan policy was created to encourage industrial growth.
    • Additional miscellaneous policies included:
    • Emergency relief programs to support unemployed individuals.
    • Establishment of the Reich Labor Service to provide work.
    • Construction of the Autobahn as a major infrastructure project to enhance transportation.
    • Laws favoring workers over automation (anti-capital policies).
    • Expansion of bureaucracy in both party and government roles.
    • Discouragement of female labor in favor of male employment.
    • Implemented conscription for military service.
    • Financing government deficits through MEFO bills, which stimulated industrial production, infrastructure improvements, and housing development.

IV. Foreign Debt Management

  • Influential Figures

    • Hjalmar Schacht played a significant role in managing foreign debt.
    • In July 1934, he ceased repayment of debts, advocating for bonds to be issued instead.
    • Creditors were informed that they would be repaid in reichmarks, which would encourage trade with Germany.

  • New Plan (September 1934)

    • Aimed to regulate imports and facilitate increased trade with select countries for specific materials and products.

V. Economic Windfalls and Propaganda

  • Legislative Changes
    • Significant reforms included no more strikes due to the German Labor Front (DAF), which suppressed labor unrest.
    • Systematic seizure of Jewish and Austrian assets was emphasized in propaganda efforts.

VI. Positive Results of Economic Policies

  • Unemployment Rates

    • In 1933, unemployment was approximately 6 million; by 1939, it had decreased to 0.2 million.
    • Notably, unemployment was already declining under Chancellor Brüning before the Nazis took further action.

  • Investment Trends

    • There were substantial increases in both private and public investments within the economy.

VII. Negative Results of Nazi Economic Policies

  • Economic Challenges
    • The balance of payments remained negative despite the apparent economic growth.
    • Foreign reserves were critically low, threatening economic stability.
    • The price of food increased significantly, leading to hardship among citizens, particularly the lower classes.

VIII. Nazi Preparedness for War

  • Four Year Plan (1936)

    • Spearheaded by Hermann Göring, focused on achieving autarky, leading to tensions with Schacht.
    • Focused on industrial production of synthetic materials and heavy machinery to support wartime needs.
    • Göring oversaw regulation of foreign exchange, labor, and resource distribution/pricing.
    • Involved the nationalization of failing corporations to bolster the economy.

  • Outcome of Preparedness

    • Targets set by the Four Year Plan were not met; by 1939, Germany was still importing one-third of its necessary resources.
    • Historians widely agree that Germany was not fully prepared for war in 1939.
    • Historian Kleinn observed that while Germany was prepared for blitzkrieg, it was unprepared for a prolonged total war.
    • Overy noted that Hitler believed he could conquer Czechoslovakia and Poland without inciting a general war.
    • The Nazi-Soviet Pact showcased Hitler's strategy to exploit Polish resources for military buildup.

IX. Speer’s Wartime Economy

  • Role of Albert Speer

    • Took over the Ministry of Armaments and Munitions in 1942 with the goal of transitioning to a long-war economy.
    • Hitler aimed to avoid rationing and consumer restrictions despite war efforts.
    • The Central Planning Board was established to streamline production and reduce unnecessary expenditures.

  • Production Strategies

    • Substituted raw materials and developed new processes to increase manufacturing capacity.
    • Set production quotas and organized the distribution of labor, machinery, and power efficiently.
    • From 1943 onwards, women could be conscripted into factories, reflecting the desperate manpower needs due to wartime attrition.
    • Approximately 7 million forced foreign workers were employed in factories during the war.

  • Results of Wartime Economy

    • Production levels increased dramatically between 1942 and 1944, despite continued military setbacks and bombing raids.
    • However, production fell markedly from 1944 to 1945 due to extensive bombing and military disturbances on multiple fronts.
    • Significant civilian casualties occurred, estimated at around 400,000, primarily due to bombings and resource shortages.
    • In 1945, Hitler ordered the destruction of assets to prevent them from being captured by Allied forces.

X. Nazi Women

  • Policies Encouraging Motherhood

    • Closed birth control centers; abortions were banned, except for cases involving “genetic defects.”
    • Implementation of compulsory sterilization for mothers with genetic defects to prevent hereditary conditions.
    • Raised maternity benefits and provided favorable tax policies for families with dependents.
    • The Lebensborn program encouraged pregnancy among single women to increase the Aryan population.

  • Workplace Dynamics

    • Many women were either fired or encouraged to leave their jobs, especially by 1934, when no female doctors, lawyers, bureaucrats, or jurors were allowed.
    • Women were excluded from leadership positions within both the party and government organizations.

  • Mobilization Efforts

    • By 1936, women began to be recruited into factories to support war production.
    • Compulsory agricultural service was enacted for women in 1939, and conscription for war service was introduced by 1942.
    • This demonstrated a shift, as all of Germany became considered the “home” front in wartime.

  • Contradictions and Discriminations

    • Policies reflected contradictions between family values and the requirements of the party.
    • A complex balance existed regarding marriage/motherhood versus illegitimacy and sterilization practices.
    • Early discouragement of women’s employment conflicted with later mobilization efforts for factory work.

XI. Nazi Children

  • Youth Organizations

    • Led by Baldur von Schirach, mandatory membership in the Hitler Youth was established in 1936.
    • Catholic youth groups were banned in 1939.
    • The focus was on preparing boys for military service and girls for motherhood.
    • Programs were highly regimented and emphasized competition.
    • Children were encouraged to spy on their parents and report any anti-Nazi sentiments.
    • Some youth formed illegal groups and movements as a form of resistance.

  • Educational Institutions

    • The Reich Education Ministry under Bernhard Rust reorganized schools to align with Nazi ideology.
    • Establishments included Napolas (secondary boarding schools), Adolf Hitler Schools, and Ordensburgen (elite military training institutions).

  • Curriculum Focus

    • Subjects emphasized included:
    • German: Nationalism and folklore were promoted.
    • Biology: Taught principles of Darwinism and racial superiority.
    • History: Focused on a sense of responsibility to the past and future.
    • Physical Education: Emphasized gym and sports while deemphasizing religion.
    • Home Economics: Specifically for girls to prepare them for traditional roles.
    • Nazification of Teaching: Teachers were forced to join Nazi unions, and any “Jewish” theses were banned.

XII. Persecution of Minorities

  • Asocials

    • Between 1933 and 1940, an estimated 300,000 to 500,000 beggars and tramps were identified as asocial.
    • Those classified as asocial faced compulsory work assignments or incarceration in concentration camps, sometimes branded with black triangles.
    • Individuals labeled as work-shy faced similar fates, with many being subjected to sterilization.

  • Biological Outsiders

    • In 1933, laws mandated compulsory sterilization for those with genetic illnesses.
    • Approximately 350,000 individuals were sterilized, limiting their ability to marry fertile partners.
    • The Nuremberg Laws (1935) prohibited marriage between Aryans and non-Aryans.
    • An Euthanasia Program operated between 1939 and 1945, leading to the deaths of around 72,000 individuals by August 1941; from 1941 to 1943, the 14F13 program resulted in the gassing of 30,000 to 50,000 more in camps.

  • Roma/Gypsies

    • An estimated 30,000 Roma lived in Germany at the period.
    • 1938 saw the registration of German Roma, leading to their deportation in 1940.
    • Deportations to Auschwitz occurred in 1942, where they were subjected to experimentation by figures like Josef Mengele; approximately 500,000 Roma were killed throughout Europe.

  • Jews

    • In 1933, there were about 500,000 Jews in Germany and approximately 9 million in Europe.
    • March 1933 marked the initiation of anti-Jewish actions, including a one-day boycott of Jewish businesses by the SA.
    • April 1933 saw Jews dismissed from civil service jobs.
    • By 1934, Jews were barred from entering professional fields such as legal and medical professions.
    • The Nuremberg Laws (1935) entrenched racial discrimination against Jews.

  • Intensification of Persecution

    • Continued discrimination led to restricted rights for Jews, including bans from public contracts and identification laws mandating Jewish individuals to adopt specific first names.

XIII. Kristallnacht (November 9/10, 1938)

  • Also known as the November Pogrom, this event was characterized by widespread violence against Jews following the assassination of a German diplomat in Paris.
  • Nazi propaganda encouraged retaliation; resulting actions included:
    • Attacks on Jewish businesses and synagogues, leading to the destruction of approximately 7,000 businesses.
    • An initially reported number of 91 deaths escalated to about 650; around 20,000 to 30,000 Jews were sent to concentration camps.
    • Jews were subsequently forced to pay for the damages incurred during the events of Kristallnacht.

XIV. Social and Economic Declarations

  • Following Kristallnacht and increased anti-Semitic policies, Jews faced growing social restrictions:
    • Barred from attending German schools and colleges.
    • Forced to sell businesses and assets, with increasing bans on their participation in society.
    • Restrictions led to severe financial and emotional strain, including an ultimatum from Hitler in January 1939 regarding the potential annihilation of the Jewish population in the event of war.

XV. Expansion of Nazi Policies Post-Invasion

  • With the invasion of Poland in September 1939, around 3 million more Jews fell under German control.
  • The SS was assigned to manage Jewish affairs, leading to further expulsions and relocations to ghettos.
  • Plans like the Madagascar Plan for mass deportation were eventually abandoned.
  • A systematic process of mass deportations led to executions and terror:
    • The Wannsee Conference in January 1942 established the framework for the Final Solution.
    • By February 1942, mass executions began in Poland, culminating in efforts to eliminate the Jewish population through enforced labor and concentration camps.

XVI. Interpretations of the Holocaust's Causes

  • Diverging historical schools of thought emerged regarding the Holocaust's origins:
    • Intentionalism/Programmism: It was a consistent aim of Hitler throughout his career.
    • Structuralism/Functionalism: Nazi officials improvised the “solution” based on context and pressure.
    • Cumulative Radicalization: Officials competed to fulfill Hitler's increasingly radical wishes.

XVII. Churches in Nazi Germany

  • By 1933, the religious demographic in Germany was:

    • 60% Protestant, 30% Catholic, 10% belonging to other groups.
    • Mainstream churches adapted to accommodate Nazism, whereas smaller denominations resisted.

  • Protestants

    • In May 1933, Hitler established the Reich Church, integrating Protestant communities under Nazi ideology.
    • The “German Christians” group emerged, attempting to consolidate church structure and remove elements seen as “Jewish.”
    • Martin Niemöller founded the Pastors' Emergency League, which faced government repression but sought to maintain Christian values against the Nazi regime.

  • Catholics

    • The Reich Concordat separated the Vatican from Nazi governance; however, anti-Catholic propaganda persisted.
    • Catholic organizations were systematically dismantled, with criticism from figures like Pope Pius XI.

  • Miscellaneous Religious Groups

    • The rise of Positive Christianity melded Nazi racial theories with Christian doctrines; the German Faith Movement emerged as a neo-pagan alternative rejecting traditional Christian teachings.

XVIII. Nazism, Art, and Culture

  • The Nazi regime promoted traditional, classical German art and rejected modernism from the Weimar era.
  • Artistic themes often involved:
    • Blut und Boden (Blood and Soil) ideology.
    • Anti-feminism and anti-Semitism were common motifs.
    • Emphasis on order, classicalism, dominance, and purpose within art.
  • The regime shifted from a focus on elite culture to reach a broader popular audience via initiatives like the Wagner Bayreuth Festival and Strength through Joy movements.
  • Reich Film Chamber was established to use film as a tool of propaganda, with notable propagandist works such as Leni Riefenstahl's films.
  • Public censorship intensified; in 1933, book burnings targeted works by Jewish, Bolshevik, and African authors and materials deemed decadent or un-Aryan.
  • Many artists fled Germany due to oppressive restrictions, targeting specifically Jewish artists and modern art forms, including jazz.