Before World War II, Hitler Lead Germany to Decline or Prosperity?

Before World War II, Hitler Lead Germany to Decline or Prosperity?

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answers (4)

Answer 1
June, 2021

The growth of the economy of the Third Reich (and the associated rise in living standards) shocked any economist at the Chicago School - and all other economists too. From 1936 to 1939 alone, the total industrial production of the Third Reich increased by 37%, in 1939 Germany produced 24 million tons of pig iron (which accounted for 22% of global production), 22.3 million tons of steel (24%), 333 million tons of coal ( 17%), and took a stable first place in the production of artificial rubber and metal-working machines. The export of ferrous metals by Germany has exceeded a similar American indicator by four times!
And all right, the Germans would have achieved such an increase in welfare with the help of a foreign "investor", allocating the lion's share of profits to this very investor - no! Foreign (mainly Jewish) capital was most insultingly pushed aside from the division of the German pie!

These impudent Germans even decided to carry out a total motorization of their people - again, throwing international concerns out of the division of profits! The car, later known as the "Volkswagen Beetle", according to the plant's price list, would have cost a German citizen in 1939 (if its mass production had begun) 990 marks. Incredible, offensively cheap! It is clear that such a price for the future "Beetle" was possible due to the exclusion from the production process of a share of the profits usually received by Gesheftmakers of a well-known nationality - but for these same Gesheftmakers it was just incredibly offensive.
On May 26, 1938, Adolf Hitler laid the first stone in the foundation of the Volkswagen plant. The German Labor Front invested 300 million marks in its construction - and by July 1939 the plant had already produced its first products! In total, 630 "beetles" were built until September 1, then the plant switched to the production of military equipment.

It was planned to sell these machines on credit, everyone (according to the plan of the German leadership) would receive a "beetle" and would pay 5 marks for it weekly for less than 4 years. With a monthly average salary of 400 marks, paying 20 marks for a car is not at all burdensome!
Why are there cars - by 1943 the Germans planned to "equip" all German households with the FE-III national TV - for television in the Third Reich began operate successfully from January 15, 1936 (before that on March 22, 1935, it was already launched, but in August the sound and image transmitter burned down). The war prevented - but even during its course, German television worked until November 23, 1943, until it was destroyed by the allied aviation.

Germany felt such an acute need for workers that every year it received more and more new programs for stimulation of labor migration to the Reich of Germans from abroad - and there was work for all of them! For the Western world, struck by severe crises, this seemed inconceivable - although in fact, there was nothing surprising in this. Arms production was booming in Germany - but German economiesThe mystics have found a way to combine this increase in spending on tanks, guns and aircraft with a sharp increase in national income and, as a consequence, with an increase in consumer purchasing activity. compare this with today's catastrophic demographic situation in Russia.
How did the Nazis manage to create an industrial giant out of only recently impoverished, like a church mouse, Germany?
By introducing partial economic autarchy.

The Germans decided to exclude from foreign capital - both domestically (having driven out of the economic life of the Jews, whose capital was connected by millions of threads with international capital), and in foreign trade - by moving with its partners to clearing settlements, excluding the circulation of foreign currency in foreign trade transactions. p>

And the Nazis decided to stimulate the growth of industrial production by massive orders of weapons and military equipment.
From 1934 to September 1, 1939, Germany's military expenditures amounted to 60 billion marks, in other words - 59.1% of budget expenditures. Like an awful lot?

Not really.

Labor productivity and the potential of German industry at this time were among the highest in the world. That is, theoretically, the German economy could in a very short time provide the rapidly growing Wehrmacht and Luftwaffe with the latest weapons. But in order to carry out such an increase in production, there was one serious limitation - the financial capabilities of the state (the customer of weapons). And the population (the buyer of sewing machines, bicycles and trousers with skirts) could not be deprived of the opportunity to purchase industrial goods for civilian use. I had to choose - either buy tanks or pants. The third, it seemed, was not given.
How to make sure that, starting a massive construction of tanks, guns and aircraft, not to leave this very population without these very last pants? At the same time, without raising a colossal inflationary wave?

The German Nazis (not themselves, of course; they had highly professional economists for this) were able to solve this problem. Moreover, they dared to do without attracting foreign capital!

They created parallel domestic money. Intended solely to finance the production of weapons. Not freely traded on the financial market outside Germany. In simple terms, they created a duplicate circulatory system of the German economic mechanism (as you know, money is the blood of the economy).

At first, in 1934-1935, such money was the promissory notes of the Metallurgical Research Society (Mefo). They were issued to pay for arms supplying firms, they were guaranteed by the state and were a normal financial instrument - with one caveat. They could only be used by industrial enterprises working for the war.
Of the 101.5 billion marks spent in the German budget in 1934-19In 1939, at least 20 billion marks were Mefo bills, that is, investment money that does not circulate in the market, and therefore does not create inflationary pressure on the economy.

But this was only the beginning.

Since 1938, instead of money, the imperial credit department began to pay manufacturing firms "money orders for delivery" with a maturity of six months. Over the year, more than six and a half billion marks were paid for such transfers - none of them went to buy
brand new Mercedes for top managers of military concerns or to purchase luxury mansions and yachts on the Bodensee. All were purposefully spent on weapons for the Wehrmacht.
Since 1939, 40% of military orders began to be paid for with so-called "tax receipts", which contractors (creators of weapons) had the right to settle with suppliers. In total, 4.8 billion marks were paid in such receipts before the war began.

In order to completely block any "capital flight" abroad, in 1937 a "regulation on German banks" was issued, which abolished independence state bank, the free exchange of marks for other currencies was stopped. And the "Law on the State Bank" of 1939 removed all restrictions on the provision of state loans altogether - the need for parallel money disappeared, henceforth the stamp was provided by the three times increased property of the Third Reich! Since 1934, according to the so-called "New Plan", foreign trade came under full state control, and all enterprises became part of the seven "imperial groups of industry." The money circulation in Germany, thus, remained balanced, the financing of military orders from the German leadership could produce by creating investment money, stimulating production growth without compromising the welfare of the nation.

Answer 2
June, 2021

When they ask questions like yours, and when they answer them, they always mean only economics. But the well-being of the people is not at all limited to the rise in the standard of living and the increase in industrial production - it must correspond to the political, social, and spiritual development of the nation. Before our very eyes, there was a very clear example of this - if the development and prosperity of the country were due only to the economy, tens of thousands of people (mostly solvent, active people, whose well-being has increased over the past decade) would simply not have taken to Moscow streets in 2011. This fully applies to pre-war Nazi Germany - yes, the regime achieved very noticeable successes in the economy, but at the same time corruption and degradation of political and social institutions, art, religion and science occurred. And the economic situation, I must say, was far from being able to sing praises to Hitler, as the previous commentators did.

So, what was the price of the economic success of the Hitler regime, and what problems did it face? First, Hitler was an amateur in everything except politics - he was an amateur in economics. But in the first half of his reign, he was much more flexible than in the second, so he willingly entrusted the work to professionals, and at his disposal they were - Hjalmar Schacht and Walter Funk, and the "captains" of German industry. In addition, his political experience played a positive role - he willingly (at that time) took risks in politics, and the infrastructure construction program, funded by the budget deficit, which began to be applied in limited volumes even under the republican government offices, was expanded many times over. That is, to be fair, the Autobahns are not Hitler's invention, but he gave a powerful impetus to their construction. Thanks to a wide variety of measures, multiplied by political capital and the will of the new head of government and then the state, Germany quickly achieved impressive economic progress, raising the level of economic well-being of its citizens to a height unthinkable in the early 1930s. But behind this verbal façade are the difficulties that Germany was increasingly faced with.

First, the imbalance in industrial production was growing. Despite the high rates of industrial growth, the development was primarily received by the enterprises of the defense complex and related branches of heavy industry. It would seem that this should have become a driver of growth for the entire economy, but it did not - at least not to the proper extent. The fact is that there were not enough resources for the simultaneous development of the civilian heavy industry and the military industry - the construction of the Volkswagen plant in Wolfsburg was indicative: funds were collected for it ... from the workers themselves - they had to deduct part of the salary as an installment plan for the purchase of a car, which were supposed to be built at this plant. But as soon as he was entereden in operation, he began to work exclusively for the needs of the Wehrmacht. Those. in fact, the state has robbed its citizens. But this is not enough - the resources and capacities of the military industry, despite all the efforts of the regime, were not enough to meet all the increasing needs of the army, aviation and navy in the volume and the list of nomenclatures, there were not enough resources to fulfill export contracts (the newly created Wehrmacht literally swept out with a broom) what German factories produced for foreign customers). In addition, there was a shortage of labor, and besides objective reasons, the government itself "took care" of this - by driving people into various forced labor organizations and obliging citizens to work, it deprived itself of a reserve of labor resources (this is why too little unemployment is harmful to the economy - balanced unemployment represents the labor reserve needed by the market). There were not enough sources of foreign exchange earnings - Germany actually had little to offer the world market (and what it could offer was in demand by the domestic market), and a scarce currency was necessary for the development of the same military industry, for which such an interesting tool was developed as bills of exchange MeFo (4% bills of a certain society, which the government paid for military supplies with enterprises, and which were not recorded on the balance sheet of the Reichsbank). And another problem, and it was getting stronger, the impotence in front of which both Hitler himself and his head of police, Himmler, actually recognized, was corruption, which reached astronomical proportions. And the main corrupt officials were representatives of the ruling party. Moreover, Hitler himself recognized the right of his Gauleiters and other "golden pheasants" (the so-called party leaders for the abundance of gold embroidery on their uniforms) to "just compensation" for the "hardships suffered during the years of struggle" by these people. In general, how is all this fundamentally different from Putin's RF in recent years? )

But, as I said, the welfare of society and its individual representatives by the economy is not at all limited to. Yes, Strength Through Joy sends German workers on modern liners on cheap cruises in the Mediterranean and to the Baltic resorts, and what are they paying for this, besides deductions from salaries? First, the constant narrowing of their rights and freedoms. The Nazis are actively building their Volksgemeinschaft, a popular community - a unified society in which everyone is equal and everyone must obey each other; in which there is no place for individuality; in which people do not belong to themselves - their health, their children, their work does not belong to them, but to the Fuhrer. And people constantly make deals with their own conscience, because "it should be so" - gradually Hitler's anti-Semitism permeates German society (in 1933 it hardly meets the support of the Germans, in the 40s it was already completely entrenched), and the Germans prefer not to notice persecution, consistent deprivation of rights and humiliation of their fellow citizens and neighbors. Gradually Germans learn to thinkthat getting rid of disabled people is a blessing for the whole nation, and German families themselves are beginning to hand over their sick relatives to euthanasia centers. Children suffer the most - they are indoctrinated so actively that differences in values ​​become the causes of family conflicts. Anti-Semitism is inculcated among children in the most active and sophisticated way - through picture books, through songs that they teach with school teachers or in "Jungfolk".

Further, corruption and degradation of government and law take place. The basis of the legal system of almost any state is its constitution, and in Hitler's Germany the 1919 Constitution continued to operate. But in practice, it ceased to be applied, and the Nazis acted exclusively on the basis of emergency law - the government and Hitler personally became legislators bypassing parliament. Nevertheless, parliament continued to meet, elections were held every four years, but there was no alternative to the Nazis. Accordingly, the citizens of the Reich were deprived of any influence on the government. Legislative power, popular representation has become a fiction. At the same time, the people, trusting the Fuhrer personally, treated the Nazi Party and its members, the leaders of party bodies with deep distrust and hostility, but Hitler himself forbade even discussing this problem in his circle - nevertheless, a wall grew between the party and the people. Jurisprudence also became a servant of the regime - government officials clothed the dictator's cannibalistic thoughts in the formulation of laws (for example, the compiler of the Nuremberg Laws was a professional lawyer, Dr. Stuckart, Deputy Minister of the Interior); professional lawyers with doctoral degrees willingly went to the punitive organs of the regime, and during the war they sunk to the point that they became commanders of Einsatz groups and commanded actions of mass murder of innocent people (there was even a university professor among them!). This is perhaps one of the most egregious examples of how decaying, poisonous influence Nazism had on German society.

Scientists, religion and art were put by the regime before a painful choice - service to the regime, emigration or the path of struggle, which could (and often ended) with a violent death at the hands of the executioner. The humanities degraded more than the technical ones - if the latter were somewhat freer from ideological diktat, and the regime was directly interested in their results, then the servants of the former became active accomplices of the regime, essentially betraying the interests of science to please the regime. There could be no question of any free development of art - any artist could create, only as a member of one of the Imperial Chambers, and prove loyalty, exclusively following the instructions of the Ministry of Propaganda. Religious leaders for the most part supported - actively or passively - the regime; on the basis of the movement "German Christians" (Nazi Protestants who demanded a correction of the doctrine - getting rid of non-Ariessome of its elements and the Old Testament, the recognition of Christ as an Aryan, as well as the creation of a single Imperial Lutheran Church and the expulsion of Jews from it), the Nazis created a single Evangelical Lutheran Church of the Reich, and its clergy took a personal oath to Hitler. Nevertheless, it was German Christians who showed the world the heights of spiritual resistance to evil - pastors Martin Niemöller and Dietrich Bonhoeffer, Catholic Bishop of Munster, Blessed Clemens Graf von Gallen and many other priests and laymen who suffered and were killed by the Nazis, showed an example of true Christian behavior in a totalitarian anti-Christian dictatorship.

The German officer corps did not remain affected by this degradation - they, not trusting and hating Hitler, provided him with support and demonstrated loyalty in exchange for help in rebuilding the army, for curbing the ambitions of Ernst Rohm, for guarantees that that the army will remain out of politics. But later, when the war began, and Hitler increasingly intervened in the command and control of the troops, almost none of the generals found the strength to protest to the end against the inhuman and senseless orders of the dictator. How much indignation there was on the sidelines over the "order on commissars" and "order on jurisdiction in the east", over extrajudicial reprisals against Jews and civilians. How many were indignant at the criminal attitude of Hitler towards his own soldiers, who deliberately left his best army to die in Stalingrad. No one, with the exception of a few conscientious officers, expressed their protest definitely - this was done only in the form of several attempts to assassinate Hitler. The rest of the German generals, obedient to idiotic orders, according to the field officers. V. von Richthofen can be called "non-commissioned officers with general salaries."

In general, the Nazi Reich of the late 30s was not an idyll. In it, somewhere explicitly, and somewhere hidden from prying eyes, processes were taking place that completely devalued the economic achievements of the regime. And personally, I do not think that the opportunity to buy a radio or a cheap car, take a cruise on a "Wilhelm Gustlov" or a resort on about. Rügen, was a worthy price to pay for the need to join the general formation and, in the words of one party leader from one film L. Riefenstahl, "march along with the Fuhrer".

Answer 3
June, 2021

The answer is only 140 characters long, so everything below will be brief and superficial.

Hitler's coming to power in 1933 as Reich Chancellor, and then in August 1934 after Hindenburg's death as Fuhrer, was practically already quite an expected event. After all, the difficult conditions of the Versailles Peace, which hurt the German economy, the Germans were practically humiliated (the idea of ​​so-called revanchism and nationalism was gradually emerging among the people). The world economic crisis, which led to unemployment and poverty among the countries of the capitalist world.

In such conditions, the German people became more and more convinced of the weakness of the Weimar government, of its inability to solve acute and pressing problems. People like Adolf Hitler were a kind of symbol of strength, stability and faith in the future. The slogans of the Nazis, their program found great support not only among the large German and foreign monopolists, but also among the common people. People were especially interested in the promises of the NSDAP to eliminate unemployment, inflation, the revival of the former greatness of the Reich and the return of the former, taken away territories. And as a result of the elections in 1932-1933, this party won the majority. Hindenburg appointed Hitler head of government and Reich Chancellor. Some time later, in August 1934, a decree was issued that in the event of the death of the president, his powers were transferred to the Reich Chancellor. And then, as if mystically, Hindenburg dies and Adolf proclaims himself the Fuhrer (Leader).

In the period from 1934-1939 until World War II, the economy of Germany (Third Reich) showed excellent results. The Nazis managed to eliminate unemployment as a result of the forced labor service introduced. The branches of industry connected with the army were especially developed. Highways and railways were widely laid in the country. The inflation rate has been significantly reduced. The state created numerous foundations and organizations to support workers ("Strength in Joy"). The Nazis especially appreciated the mother, her labor, they were given great benefits at the birth of a child, and maternity leave was granted. Before the outbreak of World War II, Germany, in terms of economic indicators, was along with countries such as the USA, France, and Great Britain). Despite the establishment of a totalitarian dictatorship, discrimination and persecution of Jews (Kristallnacht, Nuremberg Laws), it cannot be denied that Germany, thanks to Hitler, before World War II was a highly developed country with a powerful industry and economy, a strong army.

Answer 4
June, 2021

If Hitler had died suddenly in 1938, he would have gone down in history as a genius of economic revival, reformer, humanist and educator. And very few people would remember the millions that they got for very specific purposes. And so ... what happened, what happened.

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