Fascism, Nazi Germany, and Economic Policies

Fascism

Fascism is an extreme right-wing ideology.

Fascism vs. Communism

Fascism shares some similarities and has distinct differences when compared to communism:

  • Economic power in fascism is subservient to political power.

  • The government has almost complete control over the economy.

  • Government ownership and control are focused on military purposes.

  • Economic decisions were made to benefit members of the ruling party and the industrial elite rather than the workers.

  • Fascist economics appeals to business because it protects wealthy business owners and their profits from the threats of communism.

  • The focus on promoting the elite in society through support for big business only reinforced this.

Elements of a Fascist Regime

  • Corporative economy: capitalism under government control.

  • Totalitarian government: controls all phases of life from cradle to grave.

  • Fanatical: irrational, sentimental; faith versus reason (promoting nationalism through emotion).

  • Elitism: only a small minority are capable of learning; the leader is infallible.

  • Racism and imperialism: the elite is superior and therefore entitled to rule.

  • Denial of human rights: inequality is affirmed as an ideal; a major criterion is strength, not intellect (men superior to women, soldiers to civilians, victors to vanquished).

  • Black and white: enemies not just opponents; annihilated not just conquered.

  • Opposition to international law and order: war is an ideal, so international organizations that promote cooperation are opposed.

Stop and Think

  • What nations could you classify as being fascist according to this criteria?

  • What aspects of Canadian democracy either support or directly oppose the characteristics of communism and fascism?

Nazi Germany: Conditions within Germany - Crisis Theory

  • Political Instability

  • Dissatisfaction with the Weimar Government

  • Fear of Communism

  • Economic Instability

  • French invasion of the Ruhr

  • The Great Depression

  • Dissatisfaction with the Treaty of Versailles

Efforts of the Fascists to gain Power

  • Vision

  • Charisma of Hitler

  • First gained the support of the workers (socialist party), then turned to wealthy elite who could finance his campaign

  • “Fuhrer” (guide)

  • Force

  • Munich Putsch

  • Mein Kampf

  • SA/SS (“Storm Troopers” and secret police)

  • Night of the Long Knives, Kristallnacht

  • Indoctrination

  • Propaganda posters

  • “The Poisonous Mushroom”

  • Controlled participation

  • Hitler elected, becomes Chancellor

  • Reichstag Fire - Article 48 of Weimar Constitution (like Canada’s War Measures Act)

  • Has the legislative branch end political competition (turn towards dictatorial power)

  • Enabling Act (enshrine dictatorial powers for 4 years)

  • Direction of Popular Discontent

  • Used Reichstag fire to prove the need to abolish the Communist party (many initial election campaigns focused on communists)

  • Blame other groups like the Jews for German problems

Increasing Their Power

  • Lebensraum (hegemony of Europe)

  • Anschluss (union with Austria)

  • Rome-Berlin-Tokyo Axis

  • Nazi-Soviet Pact

Economic Reconstruction

  • Rebuilding the military (remilitarization).

  • Civic works projects (Autobahn).

  • Financing programs: use of dummy corporations and printed bills (Mefo-bills) = pay off debt and finance projects.

  • Use of confiscated Jewish property

  • Focus on gaining self-sufficiency (researching alternative fuels and strangling the economies of Eastern Europe by becoming the primary importer of their goods).

  • Incentives to big business, banning unions (think Schindler – capitalism for the “common good” – war effort).

Germany’s war economy was impressively organized in order to maintain the high level of armaments needed during World War Two. State planners organized resources while capitalists were able to keep a profit, giving them incentive to work with the program.

International Responses

  • Appeasement

  • Britain did not see Germany as a serious threat and there was a strong anti-war sentiment

  • France was more concerned with defense and re-building their economy

  • U.S. remained isolationist

  • Munich Pact – Sudetenland

  • Great powers agree with the argument of self-determination for German-speaking people; sacrifice Czech sovereignty for peace

How did the Nazi's Justify their Rejection of Liberalism?

  • Blame liberalism for Germany’s problems

  • Liberal nations created the Treaty of Versailles

  • Weimar Republic signed treaty, created economic collapse

  • Authoritarianism in the past had built up the German nation

  • Bismarck, “Blood and Iron”

  • Law and order will restore stability

  • Nationalism

  • Aryan nation

  • Nuremburg Laws

Nazi Germany’s Economic System

"An important factor to consider in Nazi Germany’s economic system is the fact that, apart from maintaining a relatively free capitalist system in a totalitarian state, the Nazis engaged in a giant game of on-the-spot improvisation, which nonetheless followed a certain amount of national planning. For example, the chief problem before the war was how to raise the funds to establish and equip a huge army without unleashing a war prematurely, without bankrupting the country, and without causing the worst inflationary spiral in the world.
At the same time, the war brought Germany more heavily into economic planning. However, the war also forced the Allied countries to resort to greater national economic planning. It is tempting to speculate how the Nazi economy might have operated in the absence of war. However, militarism and rearmament were so central to the Nazi ideology that perhaps the question is not, in the end, very relevant."