Nazism: Encyclopedia II - Nazism - Economic practice

Nazism - Economic practice

Nazi economic practice concerned itself with immediate domestic issues and separately with ideological conceptions of international economics.

Domestic economic policy was narrowly concerned with three major goals:

• Elimination of unemployment
• Elimination of hyperinflation
• Expansion of production of consumer goods to improve middle- and lower-class living standards.

All of these policy goals were intended to address the perceived shortcomings of the Weimar Republic and to solidify domestic support for the party. In this, the party was very successful. Between 1933 and 1936 the German GNP increased by an average annual rate of 9.5 percent, and the rate for industry alone rose by 17.2 percent.

This expansion propelled the German economy out of a deep depression and into full employment in less than four years. Public consumption during the same period increased by 18.7%, while private consumption increased by 3.6% annually. However, as this production was primarily consumptive rather than productive (make-work projects, expansion of the war-fighting machine, initiation of conscription to remove working age males from the labor force and thus lower unemployment), inflationary pressures began to rear their head again, although not to the highs of the Weimar Republic. These economic pressures, combined with the war-fighting machine created in the expansion (and concomitant pressures for its use), has led some to conclude that a European war was inevitable. (See Causes of war.)

Some economists argue that the expansion of the German economy between 1933 and 1936 was not the result of the measures adopted by the Nazi Party, but rather the consequence of economic policies of the prior Weimar Republic which had begun to have an effect. In addition, it has been pointed out that while it is often popularly believed that the Nazis ended hyperinflation, the end of hyperinflation preceded the Nazis by several years.

Internationally, the Nazi Party believed that an international banking cabal was behind the global depression of the 1930s. The control of this cabal was identified with the ethnic group known as Jews, providing another link in their ideological motivation for the destruction of that group in the Holocaust. However, broadly speaking, the existence of large international banking or merchant banking organizations was well known at this time. Many of these banking organizations were able to exert influence upon nation states by extension or withholding of credit. This influence is not limited to the small states that preceded the creation of the German Empire as a nation state in the 1870s, but is noted in most major histories of all European powers from the 16th century onward.

Adapted from the Wikipedia article "Economic practice", under the G.N U Free Docmentation License. Please also see http://en.wikipedia.org/wiki