The Nazi Economy: A Tale of Boom and Bust

Zacharias Hendrik
4 min readJan 24, 2024

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Right before World War II, Germany was in a weird situation. The economy was doing okay in some areas but terrible in others. The government had managed to help the country recover from a horrible worldwide economic downturn called the Great Depression and from the effects of a treaty that had made Germany pay a lot of money and lose a lot of land after World War I. But at the same time, the government was focused on war and taking over other countries, which meant a lot of people had to work hard and use up lots of resources. In the end, this caused Germany and much of Europe to be destroyed.

The Nazi economic miracle

In 1933, Hitler took control of Germany, and things were terrible. People were struggling to find jobs and food. But Hitler promised to improve the situation and did something to make it happen. He teamed up with Hermann Göring and built roads, railways, and houses. They also created a program to provide jobs and food for people. This helped the economy grow; by 1939, almost everyone had a job.

Hitler wanted Germany to be independent and not rely on other countries. So, he made it challenging to import things and encouraged people to buy German-made products. He also introduced new technologies like cars, planes, and electronics, which made Germany more powerful and successful. People had more money and could buy TVs and other fun stuff. Hitler even created some programs to help sick, old, and struggling people.

Hitler became popular in Germany because he seemed to be improving things for everyone. People had jobs, money, and things to enjoy, and they were proud to be German again.

Hitler at a groundbreaking ceremony for a new section of the Reichsautobahn highway system, in 1933
Development of GDP per capita, from 1930 to 1950

The dark side of the Nazi economy

So, beneath all the fancy talk about the Nazis’ economic success, things were pretty messed up. Their economy wasn’t solid but relied on this belief in war and taking over places. They were all about conquering Eastern Europe and Russia, and not to mention they were pretty discriminatory, targeting Jews, Slavs, Roma, and others they considered “inferior.” They needed a massive military to make their grand plans happen, which meant tons of resources and labor.

The Nazi economy was basically all about war — they focused more on making military stuff than taking care of regular people. They spent crazy amounts of money on gearing up for war, even more than any other country during peace. By 1939, over half of Germany’s economy was pumped into military stuff. To pay for all this, they did shady things like printing money and taking wealth from the places they conquered. And don’t even get me started on how they treated people — millions were basically forced to work in terrible conditions in factories, farms, mines, and concentration camps. In the end, their whole economic setup was a mess and fell apart, partly because of their own issues and also because of the Allied bombings.

And let’s not forget how controlling they were — the Nazi economy was all about suppressing the rights and freedoms of the German people. They bombarded people with propaganda and brainwashing, got rid of trade unions, banned strikes, and micromanaged wages and prices. They even controlled what goods people could get, rationing essential stuff like food, clothing, and fuel. Media, arts, and education were tightly monitored and censored, with no room for dissent or criticism. So yeah, their economy wasn’t about a free market but a tightly controlled one, all serving the interests of the Nazi party and its leaders instead of the German people. Total bummer, right?

The legacy of the Nazi economy

The Nazi economy really messed things up for Germany and the world, and the effects stuck around for a super long time. It played a significant role in sparking World War II, which sadly led to the loss of over 60 million lives and a ton of damage in Europe and Asia. Plus, it kicked off the whole Cold War drama.

The Nazi economy brought a heap of suffering and injustice to millions of people who got treated like garbage, enslaved, and straight-up killed by those Nazis. It didn’t just stop there — it messed with the environment, culture, and moral values in Germany and beyond. It was a massive fail that screamed, “Hey, war and aggression don’t solve squat!”

Now, looking at the Nazi economy, it’s got us thinking about some real-world problems today and down the road. Like, how do we put the brakes on governments getting all controlling and aggressive, exploiting folks’ economic and social struggles? And how do we find that sweet spot between growing the economy and keeping things secure, all while respecting human rights and democracy?

Then there’s the big question of creating a global community where everyone works together for peace and respects the differences and dignity of all people and nations. The Nazi economy is like a wake-up call, making us ponder these issues and get our act together. Time to do something about it, you know?

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