The revival of Germany’s economy during Hitler’s era which is known as the Third Reich is my all time favorite topic. The reason for which I am so passionate about writing on Hitler’s era is because history shows a lot of prejudice ignorance and hatred towards his era and completely ignores the prosperity that Germany experienced during his tenure. The story of the Third Reich is completely ignored in regards to the economic prosperity that Germany witnessed even during the global economic paralysis aka The Great Economic Depression.
In my previous article I talked about the true meaning of national socialism and how it led to the unification of Germany as a sovereign nation. The ideology of National Socialism focused on personal initiative, and taking responsibility, not only for oneself, merely for one’s own benefit, but also for the national community, as well as the environment, and thereby, ensuring the survival, that is, the health and prosperity of the nation and the society as a whole entity, and not merely the ‘survival of the fittest’ and continuous prosperity of the already prosperous, solely to their own advantage.
During the global economic paralysis Hitler’s national socialist party was able to propose and implement policies and projects to effectively tackle the economic downturn. According to John Kenneth, an economist by profession, elimination of unemployment in Germany during the Great Depression without inflation with reliance on civilian activities was a significant accomplishment. Hitler’s regime’s economic policy involved large scale borrowing for public expenditure and at first this was principally for civilian work; rail roads, canals and the Autobahn highway network. By the end of the year 1935, unemployment was at its end in Germany. What fascinates me a great deal is how profoundly and intuitively Hitler understood economics. Hitler also anticipated modern economic policy by recognizing that a rapid approach to full employment was only possible if it was combined with wage and price controls. His goal was not just to make Germany’s economy booming but was also to make the German people have faith in themselves, in their country and its resources. He strongly believed that Germany’s prosperity could be revived only if its people would have confidence in themselves and the regime, as it required both of them to work collaboratively to make Germany great again.
Hitler believed that for reorganizing Germany’s economic structure farmers should be rescued to maintain the nations food supply and, in consequence, the nation’s vital foundation. He said that farmers should be respected and facilitated for their contribution towards the betterment of the country is great. After coming into power, writes Prof. John Garraty, a prominent American historian, Hitler and his new government immediately launched an all-out assault on unemployment. They stimulated private industry through subsidies and tax rebates, encouraged consumer spending by such means as marriage loans, and plunged into the massive public-works program that produced the autobahn (highway system), and housing, railroad and navigation projects. Hitler’s regime kept its promise of improving Germany’s economy in four years and was successful in eradicating unemployment.
Major improvements during Hitler’s regime are as follows:
- From 1932 to 1938 gross real weekly earnings increased by 21 percent. After taking into account tax and insurance deductions and adjustments to the cost of living, the increase in real weekly earnings during this period was 14 percent.
- The “normal” work day for most Germans was eight hours, and pay for overtime work was generous. In addition to higher wages, benefits included markedly improved working conditions, such as better health and safety conditions, canteens with subsidized hot meals, athletic fields, parks, subsidized theater performances and concerts, exhibitions, sports and hiking groups, dances, adult education courses, and subsidized tourism.
- Between 1932 and 1938, the volume of tourism doubled, while automobile ownership during the 1930’s tripled. German motor vehicle production, which included cars made by the US-owned Ford and General Motors (Opel) works, doubled in the five years of 1932 to 1937, while Germany’s motor vehicle exports increased eight-fold. Air passenger traffic in Germany tripled from 1933 to 1937.
- German business revived and prospered and during the first four years of the National Socialist era, net profits of large corporations quadrupled, and managerial and entrepreneurial income rose by nearly 50 percent.
- Between 1933 and 1938, according to Niall Ferguson, Germany’s gross domestic product grew, on average, by a remarkable eleven percent a year, with no significant increase in the rate of inflation.
- Although German businesses flourished, profits were controlled and by law were kept within moderate limits. Beginning in 1934, dividends for stockholders of German corporations were limited to six percent annually. Undistributed profits were invested in Reich government bonds, which had an annual interest yield of six percent, and then, after 1935, of four and a half percent. This policy had the predictable effect of encouraging corporate reinvestment and self-financing, and thereby of reducing borrowing from banks and, more generally, of diminishing the influence of commercial capital.
- Taxation during Hitler’s regime was progressive as those falling in the higher income band had to pay more tax as compared to those with low incomes.
- Germany’s crime rate fell during the Hitler years, with significant drops in the rates of murder, robbery, theft and embezzlement.
In a lengthy address to the Reichstag in early 1937, Hitler recalled the promises he had made when his government came into power. He also explained the principles on which his policies were based, and looked back at what had been accomplished in four years. He also said that those who talk about ‘democracies’ and ‘dictatorships’, simply do not understand that a revolution had been carried out in Germany, and the results of which could be considered democratic in the highest sense of the term, if democracy had any real meaning .
In another address two years later, Hitler spoke briefly about his regime’s economic achievement: “I overcame chaos in Germany, restored order, enormously raised production in all fields of our national economy, by strenuous efforts produced substitutes for numerous materials that we lack, encouraged new inventions, developed traffic, caused mighty roads to be built and canals to be dug, called into being gigantic factories, and at the same time endeavored to further the education and culture of our people for the development of our social community. I succeeded in finding useful work once more for the whole of the seven million unemployed, who so touched all our hearts, in keeping the German farmer on his soil in spite of all difficulties, and in saving the land itself for him, in restoring a prosperous German trade, and in promoting traffic to the utmost.”
To conclude, Hitler’s love for Germany and the German people can never be doubted. His intellectual understanding of the world around him is something that has always intrigued me. His commitment and passion towards his goal of making Germany great again was something that made him a unique leader. I therefore believe that the bright side of Hitler’s regime should never be ignored!
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