Nazism
Economics

The Nazis came to power in the midst of Great Depression, when the unemployment rate at that point in time was close to 30%. Generally speaking, Nazi theorists and politicians blamed Germany's previous economic failures on political causes like the influence of Marxism on the workforce, the sinister and exploitative machinations of what they called international Jewry and the vindictiveness of the western political leaders' war reparation demands. Instead of traditional economic incentives, the Nazis offered solutions of a political nature, such as the elimination of organised trade unions, rearmament (in contravention of the Versailles Treaty) and biological politics. Various work programs designed to establish full-employment for the German population were instituted once the Nazis seized full national power. Hitler encouraged nationally supported projects like the construction of the Autobahn highway system, the introduction of an affordable people's car (Volkswagen) and later the Nazis bolstered the economy through the business and employment generated by military rearmament. The Nazis benefited early in the regime's existence from the first post-Depression economic upswing, and this combined with their public works projects, job-procurement program and subsidised home repair program reduced unemployment by as much as 40 per cent in one year. This development tempered the unfavourable psychological climate caused by the earlier economic crisis and encouraged Germans to march in step with the regime.

The economic policies of the Nazis were in many respects a continuation of the policies of the German National People's Party, a national-conservative party and the Nazis' coalition partner. While other Western capitalist countries strove for increased state ownership of industry during the same period, the Nazis transferred public ownership into the private sector and handed over some public services to private organizations, mostly affiliated with the Nazi Party. It was an intentional policy with multiple objectives rather than ideologically driven and was used as a tool to enhance support for the Nazi government and the party. According to historian Richard Overy, the Nazi war economy was a mixed economy that combined free markets with central planning and described the economy as being somewhere in between the command economy of the Soviet Union and the capitalist system of the United States.

The Nazi government continued the economic policies introduced by the government of Kurt von Schleicher in 1932 to combat the effects of the Depression. Upon being appointed Chancellor in 1933, Hitler appointed Hjalmar Schacht, a former member of the German Democratic Party, as President of the Reichsbank in 1933 and Minister of Economics in 1934. Hitler promised measures to increase employment, protect the German currency, and promote recovery from the Great Depression. These included an agrarian settlement program, labour service, and a guarantee to maintain health care and pensions. However, these policies and programs, which included a large public works programs supported by deficit spending such as the construction of the Autobahn network to stimulate the economy and reduce unemployment, were inherited and planned to be undertaken by the Weimar Republic during conservative Paul von Hindenburg 's presidency and which the Nazis appropriated as their own after coming to power. Above all, Hitler's priority was rearmament and the buildup of the German military in preparation for an eventual war to conquer Lebensraum in the East. The policies of Schacht created a scheme for deficit financing, in which capital projects were paid for with the issuance of promissory notes called Mefo bills, which could be traded by companies with each other. This was particularly useful in allowing Germany to rearm because the Mefo bills were not Reichsmarks and did not appear in the federal budget, so they helped conceal rearmament. At the beginning of his rule, Hitler said that "the future of Germany depends exclusively and only on the reconstruction of the Wehrmacht. All other tasks must cede precedence to the task of rearmament." This policy was implemented immediately, with military expenditures quickly growing far larger than the civilian work-creation programs. As early as June 1933, military spending for the year was budgeted to be three times larger than the spending on all civilian work-creation measures in 1932 and 1933 combined. Nazi Germany increased its military spending faster than any other state in peacetime, with the share of military spending rising from 1 per cent to 10 per cent of national income in the first two years of the regime alone. Eventually, it reached as high as 75 per cent by 1944.

In spite of their rhetoric condemning big business prior to their rise to power, the Nazis quickly entered into a partnership with German business from as early as February 1933. That month, after being appointed Chancellor but before gaining dictatorial powers, Hitler made a personal appeal to German business leaders to help fund the Nazi Party for the crucial months that were to follow. He argued that they should support him in establishing a dictatorship because "private enterprise cannot be maintained in the age of democracy" and because democracy would allegedly lead to communism. He promised to destroy the German left and the trade unions, without any mention of anti-Jewish policies or foreign conquests. In the following weeks, the Nazi Party received contributions from seventeen different business groups, with the largest coming from IG Farben and Deutsche Bank. Historian Adam Tooze writes that the leaders of German business were therefore "willing partners in the destruction of political pluralism in Germany". In exchange, owners and managers of German businesses were granted unprecedented powers to control their workforce, collective bargaining was abolished and wages were frozen at a relatively low level. Business profits also rose very rapidly, as did corporate investment. In addition, the Nazis privatised public properties and public services, only increasing economic state control through regulations. Hitler believed that private ownership was useful in that it encouraged creative competition and technical innovation, but insisted that it had to conform to national interests and be "productive" rather than "parasitical". Private property rights were conditional upon following the economic priorities set by the Nazi leadership, with high profits as a reward for firms who followed them and the threat of nationalisation being used against those who did not. Under Nazi economics, free competition and self-regulating markets diminished, but Hitler's social Darwinist beliefs made him retain business competition and private property as economic engines.

The Nazis were hostile to the idea of social welfare in principle, upholding instead the social Darwinist concept that the weak and feeble should perish. They condemned the welfare system of the Weimar Republic as well as private charity, accusing them of supporting people regarded as racially inferior and weak, who should have been weeded out in the process of natural selection. Nevertheless, faced with the mass unemployment and poverty of the Great Depression, the Nazis found it necessary to set up charitable institutions to help racially-pure Germans in order to maintain popular support, while arguing that this represented "racial self-help" and not indiscriminate charity or universal social welfare. Nazi programs such as the Winter Relief of the German People and the broader National Socialist People's Welfare (NSV) were organised as quasi-private institutions, officially relying on private donations from Germans to help others of their race, although in practice those who refused to donate could face severe consequences. Unlike the social welfare institutions of the Weimar Republic and the Christian charities, the NSV distributed assistance on explicitly racial grounds. It provided support only to those who were "racially sound, capable of and willing to work, politically reliable, and willing and able to reproduce". Non-Aryans were excluded, as well as the "work-shy", "asocials" and the "hereditarily ill". Successful efforts were made to get middle-class women involved in social work assisting large families, and the Winter Relief campaigns acted as a ritual to generate public sympathy.

Agrarian policies were also important to the Nazis since they corresponded not just to the economy but to their geopolitical conception of Lebensraum as well. For Hitler, the acquisition of land and soil was requisite in moulding the German economy. To tie farmers to their land, selling agricultural land was prohibited. Farm ownership remained private, but business monopoly rights were granted to marketing boards to control production and prices with a quota system. The Hereditary Farm Law of 1933 established a cartel structure under a government body known as the Reichsnährstand (RNST) which determined "everything from what seeds and fertilizers were used to how land was inherited". Hitler primarily viewed the German economy as an instrument of power and believed the economy was not about creating wealth and technical progress so as to improve the quality of life for a nation's citizenry, but rather that economic success was paramount for providing the means and material foundations necessary for military conquest. While economic progress generated by National Socialist programs had its role in appeasing the German people, the Nazis and Hitler in particular did not believe that economic solutions alone were sufficient to thrust Germany onto the stage as a world power. The Nazis thus sought to secure a general economic revival accompanied by massive military spending for rearmament, especially later through the implementation of the Four Year Plan, which consolidated their rule and firmly secured a command relationship between the German arms industry and the National Socialist government. Between 1933 and 1939, military expenditures were upwards of 82 billion Reichsmarks and represented 23 per cent of Germany's gross national product as the Nazis mobilised their people and economy for war.
detectable_content:number_placeholders[4]