Larry Liu Penn History Review October 2013

Economic Policy in Nazi Germany: 1933-1945

Introduction The twelve year of Nazi rule have often been frame e!haustively in terms of the "econ #orl #ar1 an the Holocaust$2 %nother area& which has often receive somewhat less attention& is the 'recise wor(in)s of the Nazi economy$ "ome scholars have consi ere the structure of the Nazi war economy& an how a lar)e share of economic 'ro uction went to the buil *u' of military fi)htin) ca'acity$3 +ut there has not been much of a iscussion about how the Nazi lea ers have frame their economic 'olicy& an with what consistency they carrie out their ictatorial economic re)ime$ ,n this 'a'er& , will 'resent some views by scholars on Nazi economic 'olicy& outline the economic con itions of #eimar -ermany that enable the Nazis to ta(e 'olitical 'ower& the i eolo)ical views of the Nazi lea ershi' on how to run the economy& an the a''lication of Nazi economic 'olicy urin) the 're*war 'erio .1/33* 3/0 an the war 'erio .1/3/*120$ , fin that the economic 'olicy of Nazi -ermany was ominate by the Nazis3 esire for the con4uest of 3Lebensraum3 .livin) s'ace0 for -ermanic 'eo'le throu)h ma!imum military 'ro uction an war effort on the one han & an state control an su'ervision on the other han $ %mon) scholars there are 'rinci'ally two views in e!'lainin) the economic 'olicies of the Nazi re)ime$ One is what , woul call the 'olitical* eterminist ar)ument& an the other is what , woul call the economic* eterminist ar)ument$ The 'olitical* eterminist ar)ument& which is favore by some liberal theorists1& claims that the Nazi re)ime essentially ictate economic 'olicies accor in) to its whims$ The totalitarian state e!'an s to all areas of social an economic life$ The e!'ansion of military 'ro uction at the e!'ense of 'rivately*le consum'tion 'oints to the su'remacy of central state 'lannin)$ The e!'ansion of the -erman 3Lebensraum3 is sim'ly another e!am'le of state* ictate interests& which have no room in an otherwise liberal*ca'italist state& where 'eace an commerce is the )eneral con ition$ %nother 'olitical* eterminist ar)ument woul be to 'oint to the Nazi 'ursuit of anti* semitic an racist 'olicy ob5ectives that absolutely has no economic relevance& but was use by the Nazis to )alvanize 'o'ular su''ort amon) the omestic -erman 'eo'le$2 ,n the economic* eterminist e!'lanation& which is 'o'ular amon) 6ar!ist theorists7& ca'italist interests that see( for o''ortunities for 'rofit an economic )rowth were essential 'illars of Nazi 'olicy*ma(in)$ The Nazis certainly ha racially focuse 'olicies in min & but they were also followin) the ictates of 'rivate business& which
1 Richar +essel& Nazism and War .New 8or(9 Ran om House& 20010: ;hristian Leitz& Nazi Foreign Policy, 1933-1941: The Road to Glo al War .Lon on9 Routle )e& 20010: <onal <$ #all& Nazi Germany and World War !! .+elmont& ;%9 Thomson*#a sworth& 20030: -eral L$ #einber)& Germany, "itler, and World War !!: #ssays in $odern German and World "istory .New 8or(9 ;ambri )e =niversity Press& 1//20 2 Lin a >acobs %ltman& The "oloca%st, "itler and Nazi Germany .+er(eley Hei)hts& N>9 ?nslow& 1///0: Te -ottfrie & Nazi Germany: The Face o& Tyranny .+roo(fiel & ;T9 Twenty*@irst ;entury +oo(s& 20000: Ronnie "$ Lan au& The Nazi "oloca%st: !ts "istory and $a'ing .New 8or(9 ,$+$ Tauris& 20070: Peter Lon)erich& "oloca%st: The Nazi Persec%tion and $%rder o& the (e)s .New 8or(9 O!for =niversity Press& 20100$ 3 Nicholas Aal or& BThe -erman #ar ?conomyC& Re*ie) o& #conomic +t%dies 13& No$ 1 .1/12D709 33*22: % am Tooze& The Wages o& ,estr%ction: The $a'ing and -rea'ing o& the Nazi #conomy .Lon on9 Pen)uin +oo(s& 200E0$ 1 ?s'ecially @rie rich Haye(& Road to +er&dom .;hica)o9 ;hica)o =niversity Press& 1/110 2 -Ftz %ly& "itler.s /ol'sstaat: Ra% , Rassen'rieg %nd nationaler +ozialism%s .@ran(furt a$6$9"$ @ischer& 20020$ 7 @ranz L$ Neumann& -ehemoth: The +tr%ct%re and Practice o& National +ocialism .=NG& 1/120$ htt'9DDwww$unz$or)DPubDNeumann@ranz*1/12: Paul 6$ "weezy& Theory o& 0a1italist ,e*elo1ment .New 8or(9 6onthly Review Press& 1/27 H1/12I0$

was encoura)e to ma(e a 'rofit urin) the rearmament 'olicy$ #hile a consumer*le economy may have been more beneficial to the in ustrialists in the lon) run& in the short run they nee e to sell a lot of 'ro ucts in the 'resent& which was ificult urin) the -reat <e'ression an un er the aus'ices of the austere late*#eimar )overnment$ "tate* irecte rearmament was a welcome o''ortunity for in ustrialists to )ain revenues$ ?ven the con4uest of 3Lebensraum3 serve the interest of -erman in ustrialists& who nee e the raw materials of ?astern ?uro'e for continue ca'ital accumulation$ -enerally& the 6ar!ist res'onse to liberals woul be that whether there was state or 'rivate*le enter'rise is ultimately irrelevant )iven the inherent necessity of more ca'ital accumulation$ ,n my account of Nazi economic history& , can fin evi ence for both the 'olitical* eterminist an the economic* eterminist e!'lanations$ The Nazis i carry out state*le 'olicies that in many ways by'asse tra itional mar(et mechanisms$ The Nazis im'ose 'rice controls whenever nee e & an set a hoc 'lans for 'ro uction 'riorities& most of which benefite the armament in ustry$ <urin) the war& the Nazis also carrie out not only )enoci al cam'ai)n a)ainst what they consi ere to be racially 3inferior3 )rou's& but also 'lun er an theft from the territories which they occu'ie $ ,n some cases& the imme iate nee s of in ustrialists were even by'asse & because the Nazis ha im'ose limitations to ivi en 'ayments to sharehol ers& an they also im'ose restrictions to ca'ital movements& which hin ers international tra e an the most o'timal .i$e$ 'rofitable0 allocation of ca'ital$ ,n some rare cases even& the Nazi re)ime remove some in ustrial lea ers& who interfere with the re)ime3s 'ro uction 'rioritiesE These were certainly e!am'les of where the 'olitical interests of the Nazi re)ime overro e the contentions of 'rivate in ustry$ On the other han & the economic* eterminists are ri)ht to ar)ue that while the Nazi re)ime ha 'olitical elements that were 'eculiar to a fascist*totalitarian re)ime& there were 'lenty of o''ortunities for the in ustrialists to benefit from Nazi economic 'olicies$ The most im'ortant element urin) the early ays of the Nazi re)ime was the fi)ht a)ainst unem'loyment followe by rearmament$ <urin) this rearmament 'erio & the in ustrialists receive many or ers& which ha not been forthcomin) un er the #eimar )overnment$ <urin) the early 'erio of rearmament& in ustrialists were able to orient their 'ro uction aroun the cost*'lus basis& where the firm tells the state& who or ers the e4ui'ment& how much it wants to char)e& an a between 3J to 7J in a itional 'rofits$ 6ost im'ortantly& the Nazi re)ime ha no interest in overthrowin) the 'rivate 'ro'erty of in ustrialists$ <urin) the early 'erio of the Nazi Party in the early*1/20s& some Nazi 'arty members ha 'ro'ose some ra ical solutions& such as 'rofit*sharin) between wor(ers an ca'italists or control of 'ro uction by the wor(ers& but they were 4uic(ly aban one by Hitler an other Nazi lea ers& who thou)ht that it was wise not to o''ose in ustrialists an who also thou)ht that they nee e in ustrialists3 su''ort to )ain 'ower an carry out the rearmament 'lans$ The Weimar Era Economy: 1919-1933 -e&ore the Great ,e1ression 21919-19394 %fter the en of #orl #ar ,& #eimar -ermany3s economy was stru))lin) severely$ <urin) much of the inter*war years the -erman economy faile to )row as much as they i in the 'erio 're*1/11 or after 1/20$K #ith the en of the ## ,& -ermany ha lost territories to Polan an @rance& which containe three*4uarters of her iron ore& one*thir of her coal: /0J of the -erman merchant fleet was confiscate & an all -erman overseas assets .17 billion mar(s0 were forfeite $ -ermany ha 5ust been efeate from the war& an was force to 'ay enormous re'arations to the @rench an the +ritish$ The
E ?!am'les are @ranz >osef +o'' from +6#& #illy 6esserschmitt an ?rnst Hein(el from the aircraft in ustry$ "ee Peter Hayes& B;or'orate @ree om of %ction in Nazi -ermanyC& Lecture at the -erman Historical ,nstitute& #ashin)ron <$;$& October 17& 200K& '$ 30$ htt'9DDwww$)hi* c$or)DfilesD'ublicationsDbulletinDbu012Dbu12L02/$' f K R$>$ Overy& The Nazi #conomic Reco*ery& 2n e ition .;ambri )e& =A9 ;ambri )e =niversity Press& 1//70& '$2

total re'arations bill came u' to 132 billion )ol mar(s$/ Re'arations were 'ai in lar)e 'art with the hel' of forei)n investors& who ha been lure by the hi)h*interest rates that -ermany offere to investors$10 Re'arations were re)ulate un er the treaties of the 3Lon on "che ule of Payments3 .6ay 1/21 to %u)ust 1/220& the <awes Plan .1/21*2/0 an the 8oun) Plan .1/2/*320$ The cost of the irect bu )etary bur en of the re'arations between 1/20*23 are estimate at 2$2J of the national income$11 <urin) the inter*war 'erio & the -erman farm 'ro ucers were unable to com'ete with more efficient farmers in other 'arts of ?uro'e$12 ;raftsmen were also out*com'ete & lea in) to the is'lacement of many craft wor(ers$13 #hile many in ustries were mo ernize & raisin) out'ut an 'ro uctivity& millions of wor(ers were left unem'loye $11 ,n or er to cushion the hi)h unem'loyment an low eman & the -erman )overnment investe in roa *buil in)& electrification an munici'al services& but at the cost of more forei)n loans an a )reater e!'osure to shifts in the )lobal economy12& such as urin) the -reat <e'ression$ The first years of #eimar -ermany ha been 'la)ue by enormous inflation$ <urin) the hy'erinflation 'erio in >uly 1/23& avera)e aily wholesale 'rices increase by 12J$17 ,n %u)ust of 1/23& in or er to re uce inflation the Reichsban( .central ban(0 sto''e financin) the bu )et eficits of the state& an issue rentenmar(s that e!chan)e 1$2 rentenmar(s for one =" ollar1E The )overnment use s'ecial enablin) le)islation to balance the bu )et by layin) off one*fourth of the 'ublic*sector wor(force& re ucin) unem'loyment com'ensation& an by acceleratin) the ue 'ayment ates for revenue collection$ ?mer)ency ecrees rela!e the ei)ht*hour wor( ay re)ulation to )ive em'loyers more leeway to increase hours& stren)thene the wa)e*arbitration machinery to efen collective labor contracts& an im'ose a stin)y re*evaluation of the state ebt$1K #ith the stabilization of the currency& there was a short time 'erio of economic stabilization an some )rowth$ +ut by the en of the 1/20s& forei)n len in) fell& the balance of 'ayment situation eteriorate for -ermany& while economic )rowth fell shar'ly ue to a fall in consum'tion eman $ #ith the onset of the )reat financial crash in 1/2/& enormous amounts of ca'ital left -ermany& 'ro ucin) an enormous li4ui ity crisis$ <urin) the e'ression between 1/2/ an 1/32& 'rices fell shar'ly& while unem'loyment an business failures increase & an )overnment s'en in) fell faster than the national income$ "hort an lon)*term len in) fell& interest rates increase & im'orts of raw materials& in ustrial investment an em'loyment ecrease $
1/

Nazi #conomic !deology ,t was in this 'olitical an economic conte!t of the -reat <e'ression that the Nazis be)an to con)re)ate$ #hat follows is a brief account of the rise of the Nazis as a first mar)inal an then central 'olitical force& their economic i eolo)y& an their ta(eover of 'ower$ The National "ocialist -erman #or(er3s Party .N"<%P0 was foun e by the -erman nationalist %nton <re!ler in 6arch 1/1K$ The
/ ,bi $& '$7$ 10 "te'hen %$ "chu(er& 5merican .Re1arations. to Germany .Princeton& N>9 Princeton =niversity Press& 1/KK0$ 11 Theo +al erston& #conomics and Politics in the Weimar Re1% lic .;ambri )e& =A9 ;ambri )e =niversity Press& 20020& ''$11*12$ 12 Overy& The Nazi #conomic Reco*ery& '$E 13 ,bi $& '$K 11 >ose'h "tancliffe <avis& The World -et)een the Wars .+altimore& 6L9 >ohns Ho'(ins =niversity Press& 1/E20& '$272 12 Rene ?rbe& ,ie nationalsozialistische Wirtscha&ts1oliti' 1933-9 im 6ichte der modernen Theorie .GMrich9 Poly)ra'hischer Nerla)& 1/2K0& '$21$ 17 +al erston& #conomics and Politics& '$37$ 1E ,bi $& '$2/$ 1K ;arl*Lu wi) Holtfrerich& The German !n&lation 1914-1933: 0a%ses and #&&ects in !nternational Pers1ecti*e .+erlin9 <e -ruyter& 1/K70$ 1/ Overy& The Nazi #conomic Reco*ery, '$13$

'arty was ee'ly o''ose to +olshevism& >ews& monarchism& international ca'italism& an the Nersailles treaty$20 % olf Hitler ha 5oine the 'arty in 1/1/21& an became its chairman in 1/2122 Hitler an the Nazis ha trie to come to 'ower violently by sta)in) a cou' a)ainst the )overnment .B+eer Hall PutschC0 in 1/23$23 The cou' was a failure& an Hitler ha been con emne in court for treason& servin) a one year 'rison sentence$21 ,t was in 5ail that he wrote his boo( B6ein Aam'fC$22 The Nazis were banne in +avaria& where the attem'te cou' too( 'lace& but Hitler continue his cam'ai)n u'on release from 'rison& an vowe to ta(e 'ower throu)h the emocratic 'rocess$27 Hitler3s economic i eolo)y was ominate by two lea in) elements& namely his racial anti*"emitism an the im'erialism 'rovi e by the con4uest of 3Lebensraum3$2E Hitler also ar)ue that the economy is of secon ary im'ortance relative to the i ealistic )oals of the state$2K ,n the wor s of historian Henry Turner& the Nazi movement Bfeels an in e'en ent national economy to be necessary& but it oes not consi er it a 'rimary factor that creates a stron) state: on the contrary9 only the stron) nationalist state can 'rotect such an economy an )rant it free om of e!istence an evelo'ment$C2/ ,n his boo(& 6ein Aam'f& Hitler writes 7The +tate is not an assem ly o& commercial 1arties in a certain 1rescri ed s1ace &or the &%l&illment o& economic tas's, %t the organization o& a comm%nity o& 1hysically and mentally e8%al h%man eings &or the etter 1ossi ility o& the &%rtherance o& their s1ecies as )ell as &or the &%l&illment o& the goal o& their e9istence assigned to them y Pro*idence: This, and nothing else, is the 1%r1ose and the meaning o& a +tate: #conomy is, there&ore, only one o& the many a%9iliary means necessary &or reaching this goal: -%t it is ne*er the ca%se or the 1%r1ose o& a +tate, 1ro*ided the latter is not ased &rom the start on a &o%ndation that is )rong eca%se it is %nnat%ral:; 30 ,n other wor s& the economy has to be subservient to the nee s of the state& an the nee of the state is thr military con4uest of forei)n territories$ Hitler an the Nazis em'hasize the role of the e!'ansion of the 3Lebensraum3 for -ermans$ The )oal was not only to re*con4uer the territories that were lost by the -ermans since the Nersailles treaty& but also to con4uer an colonize the whole of ?uro'e .es'ecially ?astern ?uro'e0$31 Hitler ar)ue that territorial e!'ansion was necessary& because the -erman 'eo'le
20 Robert "'ector& World Witho%t 0i*ilization: $ass $%rder and the "oloca%st, "istory and 5nalysis .Lanham& 6<9 =niversity of %merican Press& 20010& '$13E$ 21 >ohn Tolan & 5dol& "itler:The ,e&initi*e -iogra1hy .New 8or(9 +antam <ouble ay <ell Publishin) -rou'& 200K0& '$131$ 22 ,an Aershaw& "itler: 5 -iogra1hy .New 8or(9 #$#$ Norton& 200K0& '$K3$ 23 ,bi $& '$127 21 ,bi $& '$23/ 22 %lan +ulloc(& "itler: 5 +t%dy in Tyranny .Lon on9 Pen)uin +oo(s& 1/72H1/22I0& '$121 27 Aershaw& "itler, ''$12K*72$ 6ore etaile information on the rise of Hitler& an his bac()roun is 'rovi e in #illiam L$ "hirer& The Rise and Fall o& the Third Reich: 5 "istory o& Nazi Germany .+allantine Publishin) -rou'& 1/700& ''$1* 101$ %vailable online9 htt'9DDa5aytao2010$files$wor 'ress$comD2012D0KDrise*an *fall*of*the*thir *reich*william*shirer* ' f$' f 2E %vraham +ar(ai& Nazi #conomics: !deology, Theory and Policy .New Haven& ;T9 8ale =niversity Press& 1//009 '$21: ?berhar >Oc(el& "itler.s Weltanscha%%ng .TMbin)en& -ermany9 R$ #un erlich Nerla)& 1/7/0: Henry %$ Turner& >r$ BHitler3s ?instellun) zu #irtschaft un -esellschaftC& Geschichte %nd Gesellscha&t 2.1/E709 ''$K/*11E$ 2K Turner& BHitler3s ?instellun)C& ''$/0*/1$ 2/ Henry %$ Turner& >r$& BHitler3s "ecret Pam'h'let for ,n ustrialists&C (o%rnal o& $odern "istory 10& No$3 .1/7K09 '$372$ 30 % olf Hitler& $ein <am1& .New 8or(9 Reynal P Hitchcoc(& 1/110& ''$1/2*/7$ htt'9DDarchive$or)DstreamDmein(am'f0321E7mb'Dmein(am'f0321E7mb'L 5vu$t!t 31 -erhar L$ #einber)& The Foreign Policy o& "itler.s Germany ,i1lomatic Re*ol%tion in #%ro1e 1933-193= .;hica)o& ,L9 =niversity of ;hica)o Press& 1/E00& ''$177*7K$

face over'o'ulation in their )iven territory with their limite resources$32 The assum'tion was that since the -ermans were a su'erior .%ryan0 race& they were entitle to is'lace 'eo'le eeme of an inferior race33 .es'ecially the "lavic 'eo'le of ?astern ?uro'e0$ The e!tra livin) s'ace also allowe -ermans to aban on e!'eriments in worl in ustry an worl tra e31& which Hitler eeme to be harmful to lon)*term -erman interests$ ,n Hitler3s own wor s& 7Witho%t consideration o& traditions and 1re>%dices, Germany m%st &ind the co%rage to gather o%r 1eo1le and their strength &or an ad*ance along the road that )ill lead this 1eo1le &rom its 1resent restricted li*ing s1ace to ne) land and soil, and hence also &ree it &rom the danger o& *anishing &rom the earth or o& ser*ing others as a sla*e nation: The National +ocialist $o*ement m%st stri*e to eliminate the dis1ro1ortion et)een o%r 1o1%lation and o%r area? *ie)ing this latter as a so%rce o& &ood as )ell as a asis &or 1o)er 1olitics? et)een o%r historical 1ast and the ho1elessness o& o%r 1resent im1otence:;32 % olf Hitler3s economic views were in lar)e 'art influence by the economist -ottfrie @e er37& who ha forcefully raile a)ainst ca'italism an >ews$ ,n the 22 'oint 'ro)ram a o'te in 1/20& the Nazis un er the lea ershi' of @e er formulate several economic eman s& such as the abolition of all incomes unearne by wor(& the ruthless confiscation of all war 'rofits& the nationalization of all businesses that were forme in cor'orations& 'rofit sharin) in lar)e enter'rises& insurance for the ol a)e an suitable lan reform$3E This 'ro)ram was mo ifie in later years$ @e er3s anti*ca'italism ma e him lose 'ower an influence in the Nazi re)ime& because the in ustrialists ha stron)ly o''ose him$ Once in 'ower& Hitler realize that he coul only )ain the in ustrialists3 su''ort for his 'olicies if he aban one @e er3s anti*ca'italism$ %fter a short tenure as un er*secretary in the economics ministry urin) the first two years of the Nazi re)ime& he was recalle from office an s'ent the last few years in 'rivate life$3K Hitler3s own 'ersonal views on the economy was a contra ictory mi!ture of socialism an the 'rotection of 'rivate 'ro'erty$ ,n a s'eech Hitler says that B#e are socialists& we are enemies of to ay3s ca'italistic economic systemC$3/ ,n a later s'eech& he ar)ue that B, absolutely insist on 'rotectin) 'rivate 'ro'erty$$$we must encoura)e 'rivate initiative$C10 Hitler was so concerne about receivin) su''ort from in ustrialists that he ha insiste that his a visers (ee' silent on 4uestions concernin) the economic or er$11 Hitler3s inconsistent economic views are un er)ir e by his consistent anti*semitism& because he associate ethnic >ews with both s'rea in) communism an ca'italism& an anythin) that is
32 "te'hen >$ Lee& #%ro1e:1@9A-194B .Lon on9 Routle )e& 20030& '$23E$ 33 "helley +ranows(i$ Nazi #m1ire: German 0olonialism and !m1erialism &rom -ismarc' to "itler .;ambri )e& =A9 ;ambri )e =niversity Press& 20110& '$111$ 31 -erhar L$ #einber)& e $& "itler.s C)eites -%ch: #in ,o'%ment a%s dem (ahre 193@ ."tutt)art9 <eutsche Nerla)sanstalt& 1/710& '$173$ 32 % olf Hitler& $ein <am1& .+oston& Hou)hton 6ifflin& 1/E10& '$717$ 37 +ar(ai& Nazi #conomics& '$23$ Thou)h it must be note that @e er was not an economist& but an en)ineer by trainin) .ibi $& '$220$ 3E -ottfrie @e er& BTwenty*@ive Points9 Political Platform of the Ori)inal N"<%PC& htt'9DDwww$stormfront$or)D'osterityDnsD22'ts$html$ %lso consi er "te'hen >$ Lee& Weimar and Nazi Germany .O!for & =A9 Harcourt Heinemann& 1//70& '$2K$ 3K Robert "$ #istrich& Who.s Who in Nazi Germany .New 8or(9Routle )e& 20020& '$70$ 3/ Hitler3s "'eech& B <ouble ay "'eechC on 6ay 1& 1/2E$ ;ite in >ohn Tolan & 5dol& "itler .New 8or(9 -ar en ;ity& 1/E70& '$221$ 10 Private statement ma e by Hitler on 6arch 21& 1/12$ ;ite in Norman ;ameron an R$H$ "tevens .trans$0& "itler.s +ecret 0on*ersations .New 8or(9 @arrar& "traus an 8oun) ,nc$& 1/230& '$2/1$ 11 ,nstitut fMr Geit)eschichte& 6unich& %ufzeichnun)en Otto #a)ener& ''$722*71$

'romote by >ews ha to be re5ecte by the Nazis$12 Hitler was overall not very serious with socialist 'rinci'les& because he i believe in 'rivate 'ro'erty& thou)h only un er strict state su'ervision$13 %fter the -reat <e'ression& as the Nazi3s role in the 'olitical s'here ha increase & a 'arty*internal e'artment& the #irtschafts'olitische %bteilun) .#P%& <e'artment for ?conomic Policy0& was foun e in 1/30 to formulate the 'arty3s economic 'olicies$11 The Nazi economic a visers ha rafte a ocument on 6arch 2& 1/31 calle 3#irtschafts'olitische -run anschauun)en un Giele er N"<%P3 .+asic economic 'rinci'les an ob5ectives of the N"<%P0& which stron)ly istin)uishe between the -erman omestic economy .Nol(swirtschaft0 on the one han & an the worl economy .#eltwirtschaft0 an 'rivate economy .Privatwirtschaft0 on the other han $ The )oal of the Nazis is to sub5ect all s'heres of the economy to the interest of the -erman 'eo'le& i$e$ the 3Nol(swirtschaft3$ The state ha the res'onsibility to fulfill the functions of the bo y of the 'eo'le .Nol(s(Fr'er0& an the state bears the 'ower of the 'eo'le$ The )oal of the state is to 'rovi e for the economic self*sufficiency of the -erman 'eo'le by con4uest of new 3Lebensraum3$ The ocument affirms 'rivate 'ro'erty un er state su'ervision& an 3fair3 wa)es an 3fair3 interest rates$12 ,n 1/32& one of Hitler3s economic a visers an hea of the #P%& Otto #a)ener& 'ublishe a brochure for the Nazis& in which some more e!treme 'ositions of the 'arty were mo erate $ @or e!am'le& 'rofit*sharin) with wor(ers was later re'lace by the statement that low 'rices an fair wa)es were the best way for wor(ers to share in com'any 'rofits$17 <es'ite the fact that various Nazi lea ers an officials have lai out some etails on economic 'olicies& the inconsistency an 'ermanent shifts in economic strate)y reveal that the Nazis i not have a clear economic 'hiloso'hy$ ,t was neither mercantilist& nor liberal& nor socialist$ ,ts overall )oal ha been the creation of a stron) war machinery with which to con4uer lar)e 'arts of ?uro'e& an the estasblishment of a -erman em'ire$1E The Great ,e1ression and the #nd o& Weimar 21939-19334 %ll these Nazi 'ositions woul have 'rove irrelevant if the Nazis ha never )aine 'olitical 'ower& an if the -reat <e'ression woul not have occurre $ ,n 1/2K& the Nazis were a frin)e 'olitical movement in -ermany& receivin) barely 2$7J of the national vote in that year$ +ut as the economy move into free fall in 1/2/ with unem'loyment a''roachin) 30J& the 'o'ulist a''eals of the Nazis starte to 'ay off$ ,n 6arch 1/30& the Nazis receive 1/$2J of the vote& an in >uly 1/31& 3K$1J of the vote .cf$ @i)ure 10$ The 'olitical 'riorities of the rulin) ;atholic ;enter 'arty un er the lea ershi' of chancellor& Heinrich +rMnin)& ma e the economic crisis of failin) businesses an risin) unem'loyment worse ue to his strict a''lication of austerity 'olicies inten e to raise investor confi ence$ His ho'e was that if he coul balance the bu )et throu)h cutbac(s in social s'en in) 'ro)rams in ba economic times& investors woul be reassure to continue to invest in -ermany an enable economic recovery$1K
12 13 11 12 17 1E >ose'h #$ +en ers(y& 5 "istory o& Nazi Germany: 1919-194B .Lanham& 6<9 Rowman P Littlefiel & 20000& '$12/$ ? uar ;alic& Dhne $as'e: "itler--reiting Geheimges1rEche& 1/31 .@ran(furt a$6$& 1/7K0& '$3E$ +ar(ai& Nazi ?conomics& '$2K$ ,bi $& ''$31*3E$ Otto #a)ener& ,as Wirtscha&ts1rogram der N+,5P .6unich& 1/320$ %lso ar)ue by Neumann& -ehemoth& '$1KE$ ,n the wor s of %vraham +ar(ai .Nazi #conomics& '$2130& BNazi i eolo)y was not a unifie an consistent conce'tual system that rates com'arison with coherent schools of thou)ht li(e liberalism or 6ar!ism: it was a mi!ture of archaic resentments an irrational lon)in)s that )erminate in the soil of a late in ustrial revolution an a social revolution that 'erishe in infancy$C 1K >$ +ra for <eLon)& QN9 BNazis an "ovietsC& in +lo%ching To)ards Fto1iaG The #conomic "istory o& the T)entieth 0ent%ry .=niversity of ;alifornia at +er(eley& 1//E0$ htt'9DDweb$archive$or)DwebD200K02111/0/23Dhtt'9DDecon171$ber(eley$e uDT;?HD"louchLPur)e12$html

+rMnin) also trie to stri(e a balance between 'owerful business lea ers an lar)e lan hol ers& who were not uniform in their views about o'en tra e or 'rotectionism& but a)ree that wa)e costs ha to fall& an )overnment austerity woul enable it$1/ +esi es& the -erman )overnment was restraine by its commitment to the Nersailles treaty& which 'revente interventionist economic 'olicies to stimulate the economy$20 +rMnin)3s 'lan faile & because the continue a''lication of austerity 'olicies raise the bu )et eficit& while re ucin) economic out'ut$ +rMnin)3s bu )et balance 'ro)ram was o''ose in the Reichsta)& an he issolve the Reichsta) to call for new elections for "e'tember 11& 1/30$ The Nazis )aine 10E seats& but +rMnin) continue with more fiscal retrenchment$ +rMnin) also trie to (ee' the tie to the )ol stan ar & which was finance by the re uction of )overnment s'en in) by one thir from 1/2K to 1/32$ ,n 1/31& with s'eculative attac(s wa)e a)ainst the -erman reichsmar(& the )ol stan ar coul no lon)er be maintaine an was finally Fig%re 1: German Fnem1loyment and Nazi /ote +hare 2in I4: aban one $ ,n <ecember 1/31& +rMnin) or ere the re uction of fi!e 'rices by +o%rce: ,e6ong, 7Nazis and +o*iets; 2&ootnote 4@4: 10J& an a 12J cut to wa)es$ %s livin) stan ar s continue to eteriorate an unem'loyment continue to increase& the Nazis were cam'ai)nin) fairly a))ressively& blamin) the crisis on >ews& international financiers an ca'italists& the Treaty of Nersailles& an the "ocial <emocrats who ha su''orte it$21 ,n 6ay 1/32& +rMnin) ha to resi)n ue to a 'olitical conflict with a)ricultural interests$22 He was re'lace by @ranz von Pa'en& who too( office 'recisely when unem'loyment sto''e risin)$ ,n the Lausanne conference of >une 1/32& Pa'en was able to have the re'arations 'ayment sus'en e & which ha been a 'articular rain on the -erman treasury$ He even 'ut in 'lace a 'ublic wor(s scheme at a cost of 1$2 billion reichsmar($ Pa'en3s successor in November 1/32& Aurt von "chleicher& a e another 'ac(a)e worth 200 million reichsmar(23& but it was too late$ ,n two elections on >uly 31& 1/32& an November 7& 1/32 .the last free elections in #eimar0& the N"<%P receive a 'lurality of the votes with 3E$1J an 33$1J res'ectively$21 Throu)h clever 'olitical maneuverin)& Hitler use these favorable results to secure his chancellorshi' on >anuary 30& 1/33& because Pa'en ha thou)ht that with the Nazis in 'ower their 'o'ularity woul eventually wane$ The centrists an conservatives were also afrai of the communist 'arty as an alternative& which ha cam'ai)ne on re istributin) wealth$22 Therefore& the 'olitical
1/ Overy& Nazi #conomic Reco*ery& '$21$ 20 ,bi $& '$1/$ 21 <eLon)& BNazis an "oviets$C @or a full assessment of Heinrich +rMnin)3s 'olicies& consi er #illiam L$ Patch& "einrich -rHning and the ,issol%tion o& the Weimar Re1% lic .;ambri )e& =A9 ;ambri )e =niversity Press& 1//K0$ 22 %le!an er -erschen(ron& -read and ,emocracy in Germany .,thaca& N89 ;ornell =niversity Press& 1/K/0& '$121$ 23 ;$ #$ -uillebau & The #conomic Reco*ery in Germany &rom 1933 to the !ncor1oration o& 5%stria in $arch 193@ .Lon on9 6acmillan& 1/3/0$ 21 <eutscher +un esta)& B?lections in #eimar Re'ublicC& Historical ?!hibition$ htt'9DDwww$bun esta)$ eDht ocsLeDartan historyDhistoryDfactsheetsDelectionsLweimarLre'ublic$' f 22 Ro eric( "tac(elber) an "ally %$ #in(le& The Nazi Germany +o%rce oo': 5n 5nthology o& Te9ts .Lon on9 Routle )e&

centrists bac(e the Nazi*le coalition )overnment$27 Nazi Pre-War Economy:1933-1939 The -eginning o& Nazi R%le 21933-193=4 #ith Hitler3s a''ointment to reichschancellor& the Nazis coul ma(e their mar( felt$ Only two months after his a''ointment& with the -erman 'arliament set ablaze in flames& Hitler )rante himself all ictatorial 'ower with the enablin) law& which 'asse the Reichsta) with the su''ort of the mo erate* conservative ;entrist Party$2E The alrea y fle )lin) o''osition consistin) of "ocial <emocrats an ;ommunists were 'rohibite & their offices were estroye & an their lea ershi' was im'risone $2K +y the summer of 1/33& all )overnmental 'owers were concentrate in Hitler3s han s .ibi $ 1220$ The #eimar re'ublic was effectively abolishe $ #ith the eath of reichs'resi ent Paul von Hin enbur) in %u)ust 2& 1/31& all obstacles to Hitler3s 'ower were remove & because the function of the chancellor an the 'resi ency were mer)e $2/ Hitler3s first intention u'on 5oinin) office was to create 5obs& but when he came to 'ower he focuse on rearmament as main ob5ective$70 There was no oubt that rearmament was a central )oal of Hitler3s 'olicy$ ,n a 'rivate meetin) only three ays after his a''ointment as reichschancellor& Hitler sai & The %ilding %1 o& the armed &orces is the most im1ortant 1recondition &or achie*ement o& Jthe con8%est and settlement o& 6e ensra%mK, recon8%est o& 1olitical 1o)er: 0om1%lsi*e military ser*ice m%st e reinstalled::: "o) sho%ld 1olitical 1o)er, once gained, e %tilizedG No) there is yet nothing to say: Perha1s ca1t%re o& ne) e91ort o%tlets, 1erha1s e*en etter, the con8%est o& a ne) 6e ensra%m in the east and its r%thless Germanization: What is certain is that the economic sit%ations can e changed only y 1olitical 1o)er and str%ggle:71 ,n his first year in office& Hitler a''ointe H5almar "chacht as 'resi ent of the reichsban( .central ban(0& an in 1/31 as minister of economics$72 =n er "chacht3s aus'ices& the conse4uences of the -reat <e'ression were fou)ht by Aeynesian eficit s'en in) 'olicies73 in the form of lar)e 'ublic wor(s 'ro)rams$ =n er the BReinhar t Pro)ramC of >une 1/33& infrastructure evelo'ment finance by ta! re uctions& 'ublic investments in waterways& railroa s& hi)hways an construction in ustry were carrie out$71 The unem'loyment rate was re uce si)nificantly urin) the first years of the Nazi re)ime$ +y the late*1/30s& -ermany ha full em'loyment at relatively stable 'rices$72 Prices were no
20020& '$QQN$ htt'9DDwww$nazi$or)$u(DmilitaryJ20' fs2DTheJ20NaziJ20-ermanyJ20"ourceboo($' f Neil Ton)e& The Rise o& the Nazis .New 8or(9 Rosen Publishin) -rou'& 200/0& ''$30*32$ Robert -ellately& -ac'ing "itler: 0onsent and 0oercion in Nazi Germany .New 8or(9 O!for =niversity Press0& '$13$ %lan +ulloc(& "itler: 5 +t%dy in Tyranny .New 8or(9 Har'er ;ollins& 1//10& '$121$ Richar Overy& The ,ictators: "itler.s Germany, +talin.s R%ssia: .Lon on9 #$#$ Norton& 1/7E0$ <avi -or on& BNazi ?conomic PolicyC 6%d)ig *on $ises !nstit%te& >anuary 2& 200/$ htt'9DDmises$or)D ailyD32E1 Notes of -eneralleutnant ;urt Liebmann& in Thilo No)elsan)& BNeue <o(umente zur -eschichte er Reichswehr& 1/30* 1/33$C /iertel>ahreshe&te &Hr Ceitgeschichte 2& No$ 1 .1/2109 '$131$ <eLon)& BNazis an "oviets$C "cholars li(e Overy .The Nazi #conomic Reco*ery& '$200 woul ar)ue that Nazi economic 'olicies were not really Aeynesian& because rather than (ee'in) interest rates own& "chacht (e't it hi)h: rather than encoura)in) consum'tion an re ucin) savin)& "chacht 'romote the o''osite: rather than allowin) 'rices an wa)es to fluctuate& "chacht controlle it: an rather than allowin) the 'rivate sector to run the economy after initial investments& "chacht controlle the 'ro uction 'rocess com'letely$ %lso cf$ >ohn 6aynar Aeynes& The $eans to Pros1erity .Lon on9 6acmillan& 1/330$ Hans*>oachim +raun& The German #conomy in the T)entieth 0ent%ry .Lon on9 Routle )e& 1//00& ''$K3*1$ >ohn Aenneth -albraith& The 5ge o& Fncertainty .+oston9 Hou)hton 6ifflin& 1/EE0& '$211

27 2E 2K 2/ 70 71 72 73

71 72

lon)er re)ulate by the mar(et& but by 'olitical irective$77 ?conomic )rowth was almost e!clusively base on 'ublic investment an s'en in) 'olicies& because the sco'e for e!'ort*le )rowth ami )lobal e'ression& an omestic consumer eman ami relatively sta)nant incomes was small$ The investment share as 'ro'ortion of the national income increase from 2$3J in 1/31 to 12$EJ in 1/3K$7E ,n an effort to )uarantee continue investments in a military buil *u'& the Nazi re)ime ha also 'asse a law in 1/31 that restricte ivi en 'ayout to sharehol ers to 7J$ %ny a itional 'ayout ha to be channele to the 'urchase of -erman )overnment bon s$7K Total 'ro uction urin) the first years of the Nazi rule ha ouble between 1/32 an 1/3K$ "tron) increases inclu e ca'ital )oo s& 'i)*iron& machinery& an chemicals$ ;onsumer )oo s& te!tiles& an househol furniture saw relatively smaller increases .cf$ Table 10& which was in line with the re)ime3s 'riority for armament over consumer 'ro ucts$ Public e!'en itures in rearmament increase from a 'altry 3J of the total in 1/2K to 17$1J of all investments in 1/3K .cf$ Table 20$ Table 19 Relative )rowth of 'ro ucer an consumer )oo s in -ermany 1/2/*3K .1/2KR1000 1929 1932 193 Total !roduction "a!ital Good# "on#umer $ood# Pi$-iron %achinery "hemical# Te&tile# 110$/ 103$2 /K$2 113$K 103$K /1$K /2$1 2K$E 12$E EK$1 33$1 10$E 20$/ E/$2 7/$7 121$E 132$/ 10E$K 12E$3 11E$E 12E 10E$2 113$7

'ou#ehold (urniture 101$2 "ource9 Auczyns(i& Germany& '$322$7/

Table 29 Public ?!'en iture in -ermany by ;ate)ory 1/2K*3K .in billions of reichsmar(0 192 1932 1933 1934 1935 193) 193* Total 23$2 e&!endit ure "on#truc 2$E tion +, .11$7J0 o( Total.earma 0$E .3J0 ment +, o( TotalTran#!or 2$7 tation +, .11$2J0 1E$1 1K$1 21$7 21$/ 23$7 27$/

193 3E$1

0$/ .2$3J0 0$E .1$1J0 0$K .1$EJ0

1$E ./$2J0 1$K ./$KJ0 1$3 .E$1J0

3$2 .17$2J0

1$/ .22$1J0

2$1 .22$/J0 10$2 .13$2J0 2$1 .10$2J0

7$1 .22$EJ0 10$/ .10$2J0

E$/ .21$3J0 1E$2 .17$1J0

3 .13$/J0 2$1 .21$EJ0 1$K .K$3J0 2$1 ./$7J0

2$E .10J0 3$K .10$2J0

77 Richar -aettens& Geschichte der !n&lationen :/om 5ltert%m is z%m Gegen)art .6Mnchen& -ermany9 +attenber)& 1/KE0& '$ 2E/*2/K$ 7E Overy& The Nazi #conomic Reco*ery, '$31$ 7K Neumann& -ehemoth& '$22/$ 7/ >Mr)en Auczyns(i& Germany: #conomic and 6a o%r 0onditions %nder Fascism .New 8or(9 ,nternational Publishers& 1/120$

o( TotalWor/ * 0$2 1$2 2$2 creation .1$2J0 .K$2J0 .11$7J0 +, o( Total"ource9 Overy& The Nazi #conomic Reco*ery& '$1K 0$K .3$EJ0 * * *

@ollowin) well in line with the economic irectives that were formulate in the early 1/30s& the Nazis im'lemente economic 'olicies that i not harm the interests of bi) business$ Hitler wante no economic e!'eriments with re)ar to chan)in) 'ro'erty relationshi's& an instea estroye tra e unions in 6ay 1/33 an froze wa)e rates to meet business nee s$E0 Le)islation banne union intervention in the ne)otiation of wa)es in in ivi ual firms$E1 #a)es were eliberately (e't low to hel' businesses ma(e investmentsE2& which became crucial with re)ar to the )rowin) nee s of military war 'ro uction$ =nit labor costs i not reach the 1/2/*31 level throu)hout the 1/30s$E3 These economic 'olicies be)an to wor(& as unem'loyment fell by two million between 6arch 1/33 an 6arch 1/31$ +y 1/32 -NP levels ha reache 1/2K level$ E1 The number of unem'loye 'eo'le ha ro''e from 7 million 'eo'le in 1/33 to 302&000 in 1/3/$E2 "chacht 'ut forei)n tra e an 'ayments abroa un er strict su'ervision& im'orts coul only be brou)ht in with a license& ca'ital coul not move abroa freely& an forei)n earnin)s in -ermany ha to be s'ent in -ermany$ This measure re uce forei)n len in) an forei)n tra e& but it han e more 'olicy*ma(in) tools to -ermany$E7 -ermany effectively im'lemente a 'olicy of im'ort substitutionEE& in which finishe 'ro ucts that were hitherto im'orte were 'ro uce by -ermany itself$ +ilateral a)reements with 22 countries allowe a limite amount of im'orts of essential raw materials$EK The Nazis controlle the )rowth of 'rivate consum'tion throu)h a freezin) of wa)es$ Private consum'tion ha been restraine by all means$E/ ;orres'on in) increases in 'ro uctivity were ma e available to in ustry an the state to 'romote more investments& es'ecially in 're'aration for war$K0 The Nazis 'rioritize the re uction of unem'loyment an the armament of the country over hi)her wa)es$ The share of the national income )oin) to wa)es ecline from 71J in 1/32 to 2/J in 1/37$K1 The Nazi 'ro'a)an a ar)ue that current shorta)es were necessary sacrifices for future 'ros'erity$K2 6a5or

E0 E1 E2 E3 E1 E2

E7 EE EK E/ K0 K1 K2

Overy& The Nazi #conomic Reco*ery, '$22$ -esetz zur Or nun) er nationalen %rbeit .%O-0& >anuary 20& 1/31& R-+1$ ,& '$12$ ,bi $& '$1/$ ?$Henry Phel's*+rown& 5 0ent%ry o& Pay .Lon on9 6acmillan& 1/7K0& '$13K$ Overy& The Nazi #conomic Reco*ery, '$23 History Learnin) "ite& BThe Nazis an the -erman ?conomy$C htt'9DDwww$historylearnin)site$co$u(DnazisLan LtheL)ermanLeconomy$htm$ Thou)h there are several limitations to the unem'loyment fi)ures9 women were not counte as unem'loye & an unem'loye wor(ers face the choice of either ta(in) the )overnment 5ob or en u' in a concentration cam'& >ews were e!clu e from -erman citizenshi' an also isa''eare from )overnment statistics$ The lar)e*scale conscri'tion of youn) men into the army also alleviate unem'loyment$ Overy& The Nazi #conomic Reco*ery,, '$27 ,bi $& '$1/$ Larry Neal& BThe ?conomics an @inance of +ilateral ;learin) %)reements9 -ermany 1/31*KC& #conomic "istory Re*ie) 32& No$ 3 .1/E/09 ''$3/1*/2$ +ar(ai& Nazi #conomics& '$123 Overy& The Nazi #conomic Reco*ery, '$31 /Ll'ischer -eo achter& >une 11& 1/37$ R$>$ Overy& War and #conomy in the Third Reich .New 8or(9 O!for =niversity Press& 1//10& '$21/

civilian areas of )rowth an investment were construction K3 an automobiles$K1 6ost in ustries came un er the control an su'ervision of the Nazi )overnment$ ,n ustries consoli ate in state*su''orte cartels& an a)riculture was or)anize by the Reich @oo ?state$ "mall businesses receive su'ervision from the ;hamber of Han icraft$ %n movements in the ca'ital mar(ets re4uire state a''roval$K2 %nother (ey element of Nazi 'olicy was the so*calle 3%ryanization3 of >ewish 'ro'erty& which was the systematic confiscation of >ewish*owne 'ro'erty by the -erman authorities& forcin) many >ews to lose their 5obs an businesses$K7 %nother 'illar of Nazi economic 'olicies was to )ain self*sufficiency in foo stuffs an a)ricultural 'ro uction$ +ut this ob5ective was only 'artially reache $ <omestic 'ro uce as share of total 'ro uce increase from 7KJ in 1/2E*2K to K0J in 1/33*31 an to K3J in 1/3K*3/$ +ut urin) the 1/33*31 'erio & -ermany still ha to im'ort /0J of its ve)etable fats& 20J of its animal fats& K2J of its fiber cro's an /0J of the wool$KE %ll these e!'ansionary 'olicies came at a cost of risin) in ebte ness of the state$ #hile )overnment income increase from E$K billion reichsmar( in 1/33 to 2K$K billion reichsmar( in 1/3/& )overnment s'en in) ha increase from K$1 billion reichsmar( to 31$K billion reichsmar( in 1/3/$ ,n 1/3/& )overnment ebt stoo at 2E$1 billion reichsmar( .cf$ Table 30$KK #hile some ta! cuts were im'lemente to s'ur business 'ro uction& the )overnment i raise ta!es& an maintaine the overall hi)h ta! rates of the +rMnin) )overnment$K/ Table 39 +u )et of the Reich .in billions of reichsmar(09 1/33*1/3/ 1933034 1934-35 193503) 193)03* Total e&!en#e# K$1 10$1 1$/ .1K$3J0 12$K 1 .31$3J0 12$K 2$K .37$EJ0

193*03 20$1 K$2 .10$EJ0

193 039 31$K 1K$1 .2E$/J0

%ilitary 1$/ .23$2J0 e&!en#e# +, o( total e&!en#e#Total income 1ud$et 1alance 2ld de3t E$K *0$3 1$2

10 *0$1 1

12$K 0 3$K

17 0$2 3$E

20$1 0 3$2

2K$K *3 3$1 2E$1

Ne4 de3t E$7 K$2 10$7 12$1 12$7 "ource9 Lu wi) von 6ises ,nstitute& B,nflation in Nazi -ermanyC$ htt'9DDwi(i$mises$or)Dwi(iD,nflationLinLNaziL-ermanyS+u )etLofLtheLReich 5 War #conomy in Peace Time 2193=-19394

<es'ite this 'oor fiscal situation& the Nazi a ministration& nonetheless& 'oure /0J of all a itional
K3 K1 K2 K7 A$?$ Poole& German Financial Policies 1933-1939 .;ambri )e& 6%9 Harvar =niversity Press& 1/3/0& ''$ 210*11$ Richar >$ Overy& B=nem'loyment in the Thir ReichC& -%siness "istory 2/& No$3 .1/KE09223*2K1$ Overy& The Nazi #conomic Reco*ery, '$20$ @rie rich*#ilhelm Hennin)& "and %ch der Wirtscha&ts- %nd +ozialgeschichte ,e%tschland, +an 3& ,, .Pa erborn& -ermany9"chFnin)& 201309 ''$222*231$ KE Hans ?$ Priester& ,as de%tsche Wirtscha&ts)%nder .%mster am& 1/370& '$/3 KK History Learnin) "ite& BThe Nazis an the -erman ?conomy$C K/ +ar(ai& Nazi #conomics& ''$1K1*K2$

)overnment e!'en iture on rearmament an war 're'arations&/0 an became a Bwar economy in 'eace time$C/1 On 6arch 17& 1/32& a )eneral military raft was intro uce & an a 'lan was set u' to create 37 army ivisions$/2 The ecisive shift towar full*scale militarization occurre on %u)ust 1/37& with Hitler3s confi ential memoran um& which eman e the arme forces an the economy to be 're'are for war within four years$/3 Hitler very clearly eman e the e!'ansion of the 3Lebensraum3 throu)h an e!'ansionary war$ The countries that were tar)ete & inclu in) Polan an Russia& woul never voluntarily ce e lan to -ermany& which re4uire the use of force by -ermany& accor in) to Hitler3s reasonin)$ @rom an economic 'oint of view& the 're'arations for war 'ractically meant that more resources shoul flow not towar consum'tion )oo s to raise the overall stan ar of livin) of the -ermans& but to military 'ro uction in or er to be rea y for the war$/1 Hitler also ma e it clear that the 'rivate sector ha to submit to the irect or er of the economics ministry in or er to fulfill his armament )oal$/2 ,n or er to 'revent a ne)ative fallout of tra e bloc(a es resultin) from war& Hitler also thou)ht it was crucially im'ortant to buil u' omestic 'ro uction an 4uic(ly con4uer central an eastern ?uro'e to ta(e a vanta)e of their raw materials$/7 The minister of economy& "chacht& was o''ose to Hitler3s eclaration& because he thou)ht that threatenin) nei)hborin) countries woul have ne)ative conse4uences on -erman e!'orts an & therefore& the -erman economy$/E "chacht thou)ht that Hitler3s 'lans for autar(y were economically too costly& an it was ifficult to accom'lish$ +y 1/3/& -ermany was still im'ortin) 33J of its raw material from other countries$/K @urthermore& "chacht ha feare that an overt em'hasis on military 'ro uction coul 'otentially lea to foo shorta)es an 'o'ular unrest& 'erha's even lea in) to communism$// Hitler remaine relentless in his 'ursuit for war$ ,n "e'tember 1/37& Hitler han e the man ate to Herman -Frin) to carry out the rearmament 'lan& an -Frin) increasin)ly si eline "chacht$ "chacht resi)ne as minister of economics in November 1/3E&100 an remaine in Hitler3s cabinet as minister without 'ortfolio until 1/13$ -Frin) succee e him& but was later re'lace by #alther @un(& a -Frin) loyalist& who carrie out the irectives of the @our*8ear Plan$ ,n >anuary 1/3/& "chacht also resi)ne as 'resi ent of the Reichban(& which was ta(en over by @un($101 -Frin) himself receive Hitler3s trust& because he was willin) to 'ursue the rearmament 'lans re)ar less of its economic conse4uences$102 ,n or er to facilitate 4uic( rearmament& -Frin) also foun e a state*run com'any calle 3Reichswer(e Hermann -Frin)3 in the summer of 1/3E& which e!'loite -erman an forei)n iron ore for war 'ro uction$103 #ith the military con4uest of other states across ?uro'e .i$e$ %ustria& ;zechoslova(ia& Polan an the "oviet =nion0 an the ac4uisition of allies .Hun)ary&
/0 /1 /2 /3 +ar(ai& Nazi #conomics& ''$ 21E ?rbe& ,ie nationalsozialistische Wirtscha&ts1oliti'& '$173$ Hennin)& "and %ch& '$232$ #ilhelm Treue& BHitler3s <en(schrift zum Nier5ahres'lan 1/37$C /iertel>ahreshe&te z%r Ceitgeschichte 3& No$ 2 .1/2209 ''$1K1*210$ htt'9DDwww$ifz*muenchen$ eDheftarchivD1/22L2$' f /1 ,bi $& '$1/E /2 ,bi $& '$1// /7 Overy& War and #conomy, '$20 /E NMrnber) <o($ 1301*P" .,6T ,nternationales 6ilitOr)erichtshof& QQN,,& 1/1E0& '$122$ /K 6atthew "$ "eli)mann& >ohn <avison an >ohn 6c<onal & ,aily 6i&e in "itler.s Germany .New 8or(9 "t$ 6artin3s Press& 20030& '$12/ // Phi''s Pa'ers& ;hurchill ;olle)e& ;ambri )e& 1D12 Letter from "ir ?ric Phi''s to "ir "amuel Hoare& November E& 1/32& '$2: Letter from Phi''s to Hoare& <ecember 2& 1/32& '$3$ 100 +ar(ai& Nazi #conomics& '$222$ 101 ,bi $& '$227 102 Overy& War and #conomy, '$/7$ Thou)h urin) the last ays of the Nazi re)ime& Hitler ha turne a)ainst -Frin)& because Hitler ha thou)ht that -Frin) wante to betray him& when -Frin) as secon *in*comman sent out a letter to Hitler as(in) the latter to ce e 'ower to the former .rea "hirer& The Rise and Fall o& the Third Reich& ''$1000*010$ 103 ,bi $& '$112

Romania0& the -Frin) Reichswer( inte)rate the in ustry of other countries into its omains$101 %mon) others& the 'rivate firms Thyssen& "iemens an Aru'' were similarly im'ortant for -erman rearmament 'ur'oses$102 The imme iate challen)e that the Nazi war 'lanners ha to confront was a labor shorta)e$ The lowerin) of the unem'loyment rate urin) the early years of the re)ime has create a lac( of wor(ers in the armament in ustry& where most of the labor eman was concentrate $ Thou)h the Nazis were very much o''ose to wa)e increases that woul etract from continue accumulation for investment& they ha to )rant wa)e increases for the most 'ro uctive an s(ille wor(ers in or er to hire enou)h of them$ % ma5or obstacle to labor access was the Nazi 'olicy of returnin) women to their Bnatural rolesC& i$e$ house(ee'in)$ Prohibition a)ainst wa)e increases was 'ost'one until 1/3K$ %n thereafter labor shorta)es were resole by increase offerin) of frin)e benefits& im'rove wor(in) con itions& ai in house(ee'in) for wor(ers& 'ermanent use of com'any vehicles an hi)her wa)es for over time$107 Labor shorta)es were also very acute in the a)ricultural in ustry& where between 1/33 an 1/3/& the number of em'loye laborers fell from /$3 million to / million& or from 2K$/J to 22$/J of the total wor(force$10E ,n or er to counter that form of labor shorta)e& the re)ime recruite stu ents at harvest time& an enrolle )irls for a year of uty in a)riculture after )ra uatin) from hi)h school$ The 3Labor "ervice3 a 're*military trainin) was recruite urin) harvest time$ Peasants receive state su''ort for mechanizin) 'ro uction an 'urchasin) fertilizers an 'estici es to raise a)ricultural out'ut$10K Nazi War Economy: 1939-1945 #hen the war bro(e out in "e'tember 1/3/& consum'tion for the )eneral 'o'ulation was somewhat restricte to further 'romote the war effort& thou)h the rations were only si)htly smaller than the 'revious avera)e consum'tion$10/ +ut es'ite these restrictions& -erman consum'tion was less restricte than urin) #orl #ar ,$110 The ifference between the two wars was that because the -ermans ha occu'ie )reat territories in ?uro'e urin) #orl #ar ,,& they were able to 'lun er the 'eo'le in those occu'ie territories$111 #ith the be)innin) of the war& the )overnment also eclare full* scale mobilization& 'uttin) all the nation3s resources at the service of war$112 Ra'i military successes than(s to the 3+litz(rie)3 .li)htnin) war0 in Polan & @rance& the Netherlan s& <enmar( an Norway )ave Hitler the 5ustification that a lon)*term infrastructure for war 'ro uction was not necessary& an that the e!istin) infrastructure was sufficient for war victory$113 The Nazi lea ershi' was also embol ene by the seizure of strate)ically im'ortant stoc(s of raw material& such as mineral ores& from
101 ,bi $& ''$111*1E1$ 102 ,bi $& '$110$ %lso consi er Harol >ames& <r%11: 5 "istory o& the 6egendary German Firm .Princeton& N>9 Princeton =niversity Press& 20120: >effrey R$ @ear& Drganizing 0ontrol: 5%g%st Thyssen and the 0onstr%ction o& German 0or1orate $anagement .;ambri )e& 6%9 Harvar =niversity Press& 20020$ "iemens i not 'ro uce tan(s an )uns& but it i 'ro uce tele'hones& tele)ra'hs& ra ios& military floo li)hts& air'lane en)ines an =*boat electrical e4ui'ments& which were all useful for -erman rearmament 'ur'oses$ ;onsi er "$ >onathan #iesen& West German !nd%stry and the 0hallenge &rom the Nazi Past .;ha'el Hill& N;9 =niversity of North ;arolina Press& 20010& '$2/ 107 +ar(ai& Nazi ?conomics& '$22/ 10E <ietmar Petzina& #erner %belshauser& an %nselm @aust& +ozialgeschichtliches 5r eits %ch !!!: $aterialien z%r +tatisti' des ,e%tschen Reiches 1914-194B .6unich9 ;$H$ +ec(& 1/EK0& '$22$ 10K +ar(ai& Nazi #conomics& '$231$ 10/ Hermann Aellenbenz& ,e%tsche Wirtscha&tsgeschichte !! .6unich9 ;$H$ +ec(& 1/K10& '$12K$ 110 Thou)h R$>$ Overy .War and #conomy& '$2710 ma(es the ar)ument that the im'act of war on -erman consum'tion was very consi erable even at the be)innin) of the war$ 111 +ar(ai& Nazi #conomics& '$231$ -erman 'lun erin) of occu'ie terrirtories is e!'laine in etail in -Ftz %ly& "itler.s /ol'sstaat .o'$cit$0$ 112 Overy& War and #conomy& '$203 113 %lan "$ 6ilwar & The German #conomy at War .Lon on9 %thlone Press& 1/720& '$30$

occu'ie countries$ 322&000 tons of non*iron metals an 2E2&000 tons of Polish an @rench iron ore& alon) with aircraft& fuel an chemical 'ro ucts for the armament in ustry fell into the han s of the -erman war machinery$111 #ith the hel' of "we ish iron ore ."we en was not attac(e by -ermany0& the Nazis were able to raise steel 'ro uction by 27J between 1/3/ an 1/10$112 The Nazis also ma e sure that the occu'ie countries 'ai ta!es to the -erman war effort$ @rance 'ai 20 million reichsmar( 'er ay$ -ermany3s war e!'enses were assesse between 7K2 to K20 billion reichsmar( out of which only 22J came from -erman ta!'ayers$117 Nichy @rance also benefite -erman war efforts& because the @rench colonies su''lie the -ermans with )oo s$11E #hen -ermany ha inva e %ustria& )ol & securities an forei)n e!chan)e worth a total of 1$1 billion reichsmar( were transferre to -ermany$11K There was a )reat amount of fle!ibility in Nazi war 'lannin)$ %fter the successful con4uest of @rance in >une 1/10& armament 'ro uction ecrease $ <urin) the +attle of +ritain& the -erman war 'lanners irecte 'ro uction towar aircraft an shi''in)$ ,n 1/11& in 're'aration for the +arbarossa cam'ai)n in the "oviet =nion& 'ro uction was shifte to tan(s& )uns& ammunition& an infantry e4ui'ment$11/ Hitler3s strate)ic interest was the con4uest of Lebensraum in eastern ?uro'e& an the 'lun erin) of its resources$ ,n a strate)y 'a'er calle B-reen 6a'C .B-rMne 6a''eB0& the Nazis eman e that at the cost of hun)er eaths of millions of 'eo'le in the "oviet =nion& hu)e areas of the "oviet =nion shoul be Bcleare C .BausrOumenB0 an ein ustrialize : the fertile ;entral +lac( ?arth re)ion .in ;entral Russia0 shoul be use for the foo su''ly of -ermany an its troo's: an the raw material rich re)ion of ?astern =(raine an the ;aucasus shoul be e!'loite for -erman military 'ro uction$120 The ti e of war turne in the winter of 1/11& when the -erman invasion of the "oviet =nion came to a halt& an the +litz(rie) strate)y became a failure$ ,n <ecember 1/11& Hitler eclare war on the =nite "tates& which was a si)nificantly su'erior a versary$121 % com'arison of the combat munitions 'ro uction reveals that while -ermany an its >a'anese ally may have en5oye a small a vanta)e at the be)innin) of the war& -ermany was com'letely overwhelme in absolute 'ro uction& es'ecially by the =nite "tates .cf$ Table 10$122 Table 19 Nolume of ;ombat 6unitions Pro uction& 1/32*11 .in billions of ="T& =" 1/11 munitions 'rices0 1935-39 1945 1941 1942 1943 1944 678 "anada 69 677. 0$3 0 0$2 1$7 1$2 0 3$2 2 1$2 0$2 7$2 K$2 20 1 / 11$2 3K 1$2 11 11 12 1$2 11 17

111 Aellenbenz& ,e%tsche Wirtscha&tsgeschichte& '$170$ 112 +ar(ai& Nazi #conomics& '$232$ 117 Aellenbenz& ,e%tsche Wirtscha&tsgeschichte& '$172 11E +erthol Puchert& B<eutschlan s %uUenhan el im Gweiten #elt(rie)B in <rieg %nd Wirtscha&t: +t%dien z%r de%tschen Wirtscha&tsgeschichte 1939-194B& e $ <ietrich ?ichholtz .+erlin9 6etro'ol& 1///0& '$27K 11K +un esarchiv .+%rch0& R 27 ,ND1 an 2$ 11/ +ar(ai& Nazi ?conomics& '$232$ -erman an "we ish tra e 'olicy is also iscusse in "ven*Olof Olsson& German 0oal and +)edish F%el, 1939-194B .-othenbur)9 ,nstitute of ?conomic History of -othenbur) =niversity& 1/E20$ 120 Aarl*Heinz Roth& BNeuor nun) un wirtschaftliche Nach(rie)s'lanun)enC& in <rieg %nd Wirtscha&t: +t%dien z%r de%tschen Wirtscha&tsgeschichte 1939-194B& e $ <ietrich ?ichholtz .+erlin9 6etro'ol& 1///0& ''$202*07 121 ,bi $ 122 6ar( Harrison& BResource 6obilization for #orl #ar ,,9 The =$"$%$& =$A$& =$"$"$R$& an -ermany& 1/3K*1/12C& #conomic "istory Re*ie)& 11& No$ 2 .1/KK09 ''$1E1*1/2$

Germany

2$1

K$2

13$2

1E 7

:a!an 0$1 1 2 3 1$2 "ource9 Harrison& BResource 6obilization for #orl #ar ,,C& '$1E2 .@ootnote 1220

%s the war continue to ra) on& the bu )etary situation of -ermany became more 'recarious$ 6ilitary e!'en itures controlle three*4uarter of the total )overnment bu )et for most of the war years$ #hile )overnment revenues increases one an a half times urin) the war 'erio & e!'en itures increase by more than three times urin) the war$ This le to an increase of the total ebt from 1E$/ to 3E/$K billion reichsmar( .cf$ Table 20$ <urin) the war& the Nazi )overnment increase ta! revenues an savin)s not as a result of a )rowth in the economy& but as a result of substitutin) for consum'tion$ 6ore ta!es were e!tracte out of 'eo'le3s savin)s to finance the on)oin) war rather than to au)ment consum'tion$123 Restrictions in clothin)& foo an retail consum'tion that were iverte to war efforts increase from 11 billion reichsmar( in 1/3/ to 31 billion reichsmar( in 1/11$121 Table 29 +u )et of the Reich .in billions of reichsmar(09 1/3/*1/12 1939045 1945-41 1941042 1942043 Total e&!en#e# 22$1 EK 101$/ 12K$7

1943044 123

1944045 1E1$3 12K$1 .E2J0

%ilitary 32$3 .72J0 e&!en#e# +!ercenta$e o( total e&!en#e#Total income 1ud$et 1alance 3/$2 *12$7

2K$1 .E1$2J0 E2$7 .E1$2J0 /7$/ .E2$3J0 11E$/ .EE$1J0

2E$7 *20$1

E2 *27$/

/1$7 *3E

/7$2 *27$K

K/$E *K1$7 3E/$K

Total ;e3t 1E$/ K7 13E$E 1/2$7 2E3$1 "ource9 Lu wi) von 6ises ,nstitute& B,nflation in Nazi -ermanyC$ htt'9DDwi(i$mises$or)Dwi(iD,nflationLinLNaziL-ermanyS#orl L#arL,,$2;L1/3/*1/12

There were two im'ortant 'lanners for the Nazis urin) the war$ @ritz To t& who le an in e'en ent armament an munitions 'ro uction e'artment& an %lbert "'eer& who succee e To t after his eath in @ebruary 1/12$ Their tas( was to reor)anize the or)anizational 'rinci'les of -erman war 'ro uction& to raise efficiency an im'rove the coor ination of mobilization$ =ntil the en of 1/11& -erman enter'rises o'erate on a cost*'lus basis& where the 'ro ucers 'ro'ose arbitrary cost calculations an a e 3 to 7J in 'rofits in a ition$ %fterwar & To t re'lace this system with a metho of fi!e 'rices& which is etermine by the )overnment e'artment$ The )oal was to re uce waste an im'rove efficiency in 'ro uction an internal a ministration$ "'eer a vocate for the economies of scale& by havin) much of arms 'ro uction ha''en in lar)e factories& which ha the si e effect of ma(in) -erman armament 'ro uction more sensitive to %llie bombin) rai s$122 The a ministration also carrie out rationalization to raise efficiency$ This meant the im'osition of ti)hter control over im'ortant 'hysical
123 Overy& War and #conomy& '$2E1 121 +un esarchiv .+%rchiv0& RE QN,D2K& "tatistics on National ,ncome 122 +ar(ai& '$23E: %lbert "'eer& !nside the Third Reich .Lon on9 %von +oo(s& 1/E10& '$2/2$

resources .raw material& factory e4ui'ment& an labor0& an common 'ro uction stan ar s across -erman in ustry$127 The loss of territory in the <onets basin .eastern =(raine0 in 1/13& an the loss of Arivoy Rih .central =(raine0 in 1/11& 'ose the )reatest economic loss for the -erman war machinery$12E 6a!imum arms 'ro uction was reache in >uly 1/11& thou)h tan(s& wea'ons an shi's continue to increase until <ecember 1/11$12K ,t ecline thereafter$ #ar 'ro uction relie on enormous amounts of labor& which was initially scarce ue to the fact that 13 million -erman men were rafte into the #ehrmacht to serve in the war$ Hitler a''ointe @ritz "auc(el to become the 'leni'otentiary for labor allocation$ "auc(el3s tas( was to roun u' 'risoners of war an wor(ers from the occu'ie territories as well as 'risoners in concentration cam's& an 'ut them into armament factories$12/ The number of force laborers increase from 1$1 million in 1/12 to E$1 million wor(ers in 6ay 1/11$130 This oes not ta(e into account the labor that was 'art of the in e'en ent economic em'ire of the "" ."chutzstaffel0& which o'erate about 120 firms in all s'heres of 'ro uction& usin) an abun ant su''ly of concentration cam' wor(ers$131 +ut with the forei)n armies a vancin) 4uic(ly in 1/11& "auc(el face an enormous loss in the number of force laborers that coul be 'ulle into the factories$ Out of the 'lanne 1 million a itional wor(ers& only 1$1 million wor(ers coul be 'ulle into 'ro uction$132 The all*out war effort increase the share of in ustrial labor evote to the arme forces from 21$/J in 1/3/ to 71J in 1/13$133 ,n the last years of the war& the Nazis im'ose wor( on "un ay& len)thene the wor( wee( to E2 hours& an e'loye women in a ministration an trans'ortation$ Ol er wor(ers were increasin)ly rafte to wor($ ?ven 'hysically isable 'eo'le& an very youn) an very ol 'eo'le were rafte into the military$131 The war an the Nazi re)ime en e with the suici e of % olf Hitler& the con4uest of +erlin by "oviet forces& an the uncon itional surren er si)ne by Hitler3s successor& a miral Aarl <Fnitz& on 6ay K& 1/12$ Hitler3s last note& ca'turin) the essence of his economic i eolo)y& written shortly before his suici e on %'ril 30& 1/12& rea & 7The e&&orts and sacri&ices o& the German 1eo1le in this )ar ha*e een so great that ! cannot elie*e that they ha*e een in *ain: The aim m%st still e to )in territory in the #ast &or the German 1eo1le:;132 "onclu#ion This 'a'er has trie to e!amine the content& structure an i eolo)y of Nazi economic 'olicies$ ,n my in4uiry& a few )ui in) themes have emer)e 9 thou)h the Nazis i not have a consistent economic i eolo)y& such as is 'rovi e un er 6ar!ism or Liberalism& they ha a )ui in) o)ma& which was the con4uest of new 3Lebensraum3 in ?astern ?uro'e with the use of a))ressive military force an a
127 Overy& War and #conomy, '$327 12E <ietrich ?ichholtz& <ie eutsche Arie)swirtschaft 1/11D129 ?ine +ilanzC& in <rieg %nd Wirtscha&t: +t%dien z%r de%tschen Wirtscha&tsgeschichte 1939-194B& e $ <ietrich ?ichholtz .+erlin9 6etro'ol& 1///0& '$322 12K ,bi $& '$32E 12/ +ar(ai& Nazi #conomics& ''$23E*3/ 130 +ernhar R$ Aroener& B"ol aten er %rbeit9 6enschen'otential un 6enschenman)el in #ehrmacht un Arie)swirtschaftC& in <rieg %nd Wirtscha&t: +t%dien z%r de%tschen Wirtscha&tsgeschichte 1939-194B& e $ <ietrich ?ichholtz .+erlin9 6etro'ol& 1///0& '$120$ 131 +ar(ai& Nazi #conomics& ''$23/*10$ ""3 use of force labor is iscusse in 6ichael Tha %llen& The ++, +la*e 6a or, and the 0oncentration 0am1s .;ha'el Hill& N;9 =niversity of North ;arolina Press& 20020$ 132 Aroener& +oldaten der 5r eit& '$123 133 ,m'erial #ar 6useum& Lon on .,#60 @< 3027D1/& B"tatistical 6aterial on the -erman 6ano'ower Position urin) the #ar Perio 1/3/*1/11C& @,%T ?@DL6D1& >uly 31& 1/12& Table E$ 131 ,bi $ '$121 132 Vuote in "hirer& Rise and Fall o& the Third Reich& '$1011

relentless war economy that woul achieve such ob5ective$ This con4uest woul su''ose ly a vance the interests of the thousan year em'ire le by the -erman 'eo'le$ The lac( of consistency in s'ecific 'olicy etails )ave the war 'lanners some fle!ibility to a 5ust 'olicies to the re4uire con itions$ Hitler certainly was very im'atient in his 'ursuit of forei)n con4uest137& an ha since his enthronement in 1/33& an at least since the announcement of his @our*8ear 'lan in 1/37& insiste on the 4uic( militarization of -ermany in or er to attain 4uic( victories on the battlefiel $ @rom an economic view'oint& this relentless 'ursuit for war ha come at the cost of consumers3 ability to consume .an the enormous loss of life0$ 6ost of the economic sur'lus was investe into military 'ro uction& of which H5almar "chacht ha warne a)ainst$ ,n the en & Nazi warfare 'rove to be suici al$ The source of Nazi le)itimacy can in lar)e 'arts be trace bac( to the uni4ue features of #eimar -ermany an the con itions of the -reat <e'ression& where risin) unem'loyment& continuin) re'aration 'ayments an latent antisemitism were successfully e!'loite by the Nazis for their own 'olitical 'ur'oses$ Once in 'ower& the Nazis carrie out 'olicies that i alleviate unem'loyment& thou)h at the cost of )rowin) arms e!'en itures an in antici'ation of a war that woul 'ull the continent towar the ver)e of self* estruction$ The 4uestion for the contem'orary rea er is whether the economic history of Nazi -ermany has any 'ractical relevance in the twenty*first century$ , woul venture to say that while it has become ifficult to conce'tualize a total war in the current 'erio & the rise of many fascist an neo*fascist )rou's in ?uro'e in recent years shows that seemin)ly out ate & racist& nationalist an ethno*centric 'olicy 'ositions remain well an alive& es'ecially in the conte!t of neoliberal 'olicies of welfare state retrenchment& austerity 'olicies ami state fiscal bu )et crises& an )rowin) immi)ration an refu)ee waves into ?uro'e$13E The enormous austerity 'olicies that the 'eo'le of ?uro'e are currently sub5ectin) themselves to bears a remar(able similarity with +rMnin)3s 'olicy of internal eflation in the early*1/30s& which was accom'anie by the )rowin) 'o'ular su''ort for the hitherto mar)inal Nazi 'arty$ To ay& the once insi)nificant fascist -ol en <awn 'arty in -reece has become a serious 'olitical faction in a country that is sin(in) into economic an social chaos$ 6any of its 'arty members are (nown for carryin) out violence an hate crimes a)ainst immi)rants& 'olitical o''onents an ethnic minorities$13K Ri)ht*win) 'o'ulist 'arties in %ustria now carry more than 30J of the national vote$13/ >obbi(& a ri)ht*win)& nationalist 'arty in Hun)ary& rose from oblivion into a 'otent 'olitical force with 1EJ of the national vote$110 ,nterest in Nazi economic history is a useful remin er for the lessons of the 'ast$ ,n the wor s of %lbert ?instein& B,nsanity is oin) the same thin) over an over a)ain& but
137 %lso ar)ue by Henry Aissin)er& ,i1lomacy .New 8or(9 "imon an "chuster& 1//10& '$371$ 13E The social science literature on the rise of ri)ht win) e!tremism in ?uro'e is fairly e!tensive$ Hans*-eor) +etz& BThe New Politics of Resentment9 Ra ical Ri)ht*#in) Po'ulist Parties in #estern ?uro'eC& 0om1arati*e Politics& 22& No$ 1 .1//309 ''$113*2E: <uane "wan(& an Hans*-eor) +etz& B-lobalization& the #elfare "tate an Ri)ht*#in) Po'ulism in #estern ?uro'eC& +ocio-#conomic Re*ie) 1 .200309 ''$212*12: ?lisabeth ,varsflaten& B#hat =nites Ri)ht*#in) Po'ulists in #estern ?uro'eW9 Re*?!aminin) -rievance 6obilization 6o els in "evel "uccessful ;asesC& 0om1arati*e Political +t%dies 11& No$ 1 .200E09 ''$3*23: <aniel Oesch& B?!'lainin) #or(ers3 "u''ort for Ri)ht*#in) Po'ulist Parties in #estern ?uro'e9 ?vi ence from %ustria& +el)ium& @rance& Norway& an "witzerlan C& !nternational Political +cience Re*ie) 2/& No$ 3 .200K09 ''$31/*3E3$ 13K 6anfre ?rtel& B3Li(e 1/30s -ermany39 -ree( @ar Ri)ht -ains -roun C& +1iegel !nternational& %'il 1K& 2013$ htt'9DDwww$s'ie)el$ eDinternationalDeuro'eDneo*nazis*an *ri)ht*win)*e!tremists*)ainin)*su''ort*in*)reece*a* K/12/7$html$ The -ree( unem'loyment rate was 2E$7J in >uly 2013$ B-ree( =nem'loyment Rises to 2E$7 'ct in >uly$C Re%ters& October 10& 2013$ htt'9DDwww$reuters$comDarticleD2013D10D10D)reece*unem'loyment* i ="?6"1O3"O>20131010 13/ RT& B?yes ri)htX %ustrian ?lections @ollow ?uro'e3s Ri)htist Tren C& "e'tember 30& 2013$ htt'9DDrt$comDnewsDaustria* elections*far*ri)ht*221D 110 Paul Hoc(enos& B,nsi e Hun)ary3s anti*"emitic Ri)ht*#in)C& Glo al Post, >une 1& 2010$ htt'9DDwww$)lobal'ost$comD is'atchDeuro'eD10022KDhun)ary*5obbi(*far*ri)ht*'arty

e!'ectin) ifferent results$C