Bilge_Rat |
01-13-16 05:09 PM |
Quote:
Originally Posted by mapuc
(Post 2373261)
A quick question
How was the German economy around the year 35-39 ?
Markus
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it was doing more or less fine, after the Nazis took over they implemented more direct control over the economy, specifically controlling the exchange rate, capital inflow/outflow, and import/exports though formal and informal controls. The aim was to keep capital in Germany to help finance their rearmament and infrastructure projects. It would have been doing better if they had devalued the Reichmark or let it float, but that was verbotten after the 1923 crash. They also assumed more direct control and rationing of vital raw materials to make sure armament producers received priority.
They don't seem to have had a problem financing their re-armament program, the only limit was a relative shortage of raw materials and labour. They also had a one time boost from assets/valuables they forced jews to leave behind when they emigrated.
Some economists have theorized that the Nazi economy was a house of cards, but as Tooze points out in "Wages of Destruction", it was actually fairly robust. It is a bit ironic that for all their criticisms of Communism, the Nazis were actually very interventionist in their economic policies.
They did not interfere with the ownership of most German corporations, unless the owners posed a political problem and/or were incompetent. Most business owners were happy to cooperate since the Nazis gave them very lucrative arms contracts and kept the workers in line.
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