Lee: The German Economy

[Mr Humphreys]

Hitler’s economic policy had three main points

The period of ‘Partial Fascism’

According to Lee during the period of ‘Partial Fascism’ “the state moved into a programme of job creation to reduce the level of unemployment while, at the same time, seeking to control wages and eliminate trade union power.” (Lee 194) There was of course a more militaristic side to this policy; this is seen in the fact that most of these jobs were created through the creation of civilian as well as military infrastructure. Some of these great projects include the Autobahn Projekt which were integral to the blitzkrieg, as well as the armament and tank factories used for weaponry.

The New Plan (1936)

The New Plan, under Schacht, “regulated imports and allocations of foreign exchange in key sectors of the German economy. Overall Schacht was convinced that it was essential to raise the level of exports if Hitler’s objective of increased military expenditure were to be realized.”(Lee 194). Also under Schacht Germany developed trade agreements with “underdeveloped areas” to gain new markets and resources (Lee 194). All of these were necessary steps for German rearmament.

The Four Year Plan

According to Lee “The basic purpose of the Four Year Plan was to achieve self sufficiency, or autarky, in both industry and agriculture...” (Lee 194). According to Lee “The plan resulted in increased military expenditure.” (Lee 195). The epitome of policy intertwining is noted by Lee when he notes that the final economic step was the implementation of blitzkrieg. Blitzkrieg is utilized as a economic strategy to war due to the fact that German oil reserves could not hold on much more after one month of fighting.

Degree of Success

Hitler’s success in implementing the party line can be called successful to an extent. This is due to the fact that most of his initial policies, such as his economic policies, served their purpose as he had planned them. This is seen in the methodic calculation of timing economic necessities with the introduction of war. The first of the three steps of economic preparation for war, and their military equivalents all go thru flawlessly, it is in the fourth step that Hitler stumbles, the fourth step being total war. According to Lee, by the time that total war began “The German economy was now pushed to its limit.”(Lee 195). Germany’s final downfall was due to its inability to not be outproduced by the U.S.S.R and the United States. The verdict on Hitler’s economic policy is mixed, relatively successful for the original goals, yet failed to make it past the finish line. Due to the failure of his economic policy the failure of his foreign policy, Lebensraum and the Thousand Year Reich, also failed.