How did Hitler turn the German economy around so quickly?

Answer 1

When the Nazis came to power the most pressing issue was an unemployment rate of close to 30%. The economic management of the state was first given to respected banker Hjalmar Schacht. Under his guidance, a new economic policy to elevate the nation was drafted. One of the first actions was to destroy the trade unions and impose strict wage controls.

The government then expanded the money supply through massive deficit spending. However at the same time the government imposed a 4.5% interest rate ceiling, creating a massive shortage in borrowable funds. This was resolved by setting up a series of dummy companies that would pay for goods with bonds. The most famous of these was the MEFO company, and these bonds used as currency became known as mefo bills. While it was promised that these bonds could eventually be exchanged for real money, the repayment was put off until after the collapse of the Reich. These complicated maneuvers also helped conceal armament expenditures that violated the Treaty of Versailles.

According to economic theory, price control combined with a large increase in the money supply should have produced a large black market, but harsh penalties that saw violators sent to concentration camps or even shot prevented this development. Repressive measures also kept volatility low, reducing inflationary pressures. New policies also limited imports of consumer goods and focused on producing exports. International trade was greatly reduced remaining at about a third of 1929 levels throughout the Nazi period. Currency controls were extended, leading to a considerable overvaluation of the Reichsmark. These policies were successful in cutting unemployment dramatically.

Most industry was not nationalized, however industry was closely regulated with quotas and requirements to use domestic resources. These regulations were set by administrative committees composed of government and business officials. Competition was limited as major companies were organized into cartels through these administrative committees. Selective nationalization was used against businesses that failed to agree to these arrangements. The banks, which had been nationalized by Weimar, were returned to their owners and each administrative committee had a bank as member to finance the schemes.

While the strict state intervention into the economy and the massive rearmament policy led to full employment during the 1930s, real wages in Germany dropped by roughly 25% between 1933 and 1938.[7] Trade unions were abolished, as well as collective bargaining and the right to strike.[8] The right to quit also disappeared: Labor books were introduced in 1935, and required the consent of the previous employer in order to be hired for another job.[9]

The German economy was transferred to the leadership of Hermann Göring when, on 18 October 1936, the German Reichstag announced the formation of a Four-Year Plan. The Nazi economic plan aimed to achieve a number of objectives. Under the leadership of Fritz Todt, a massive public works project, the Reichsarbeitsdienst, was started, rivaling Roosevelt's New Deal in both size and scope. It functioned as a military-like unit, its most notable achievements being the network of Autobahnen and, once the war started, the building of bunkers, underground facilities and entrenchments all over Europe.

Another part of the new German economy was massive rearmament, with the goal being to expand the 100,000-strong German Army into a force of millions. In comparison, a military buildup had also been a part of the New Deal (regarding the Navy) and Stalin's First Five Year Plan. The Four-Year Plan was discussed in the controversial Hossbach Memorandum, which provides the "minutes" from one of Hitler's briefings. Some use the Hossbach Memorandum to show that Hitler planned a war in Eastern Europe in the pursuit of Lebensraum, believing that the Western powers of the United Kingdom and France would not intervene, leaving him free to take over the USSR, the "natural enemy" of Germany. However, this intentionalist view is disputed.

Nevertheless, the war came and although the Four-Year Plan technically expired in 1940, Hermann Göring had built up a power base in the "Office of the Four-Year Plan" that effectively controlled all German economic and production matters by this point in time. In 1942, the growing burdens of the war and the death of Todt saw the economy move to a full war economy under Albert Speer.

Answer 2

High IQ, very high comprehension and analytical powers, belief in himself and his convictions, putting country before self and doing what is best for the country.

Answer 3

by creating jobs and controlling the economy, that is why Germany had the best Autobahns(freeways) in the world. He is proof there is very little difference between genius and madman

Answer 4

The economy was turning round anyway. Bruning's tight measures before 1933 benefited the Nazis twice over. First it produced discontent, and then when the economy began to improve, the Nazis took the credit.

Answer 5

Slave labor. The Jews were sent to labor camps and produced cheap goods for Germany. When insufficient food, nutrition, and over work made it impossible for a person to continue to work, they were killed or left to die where they were.

Also businesses, homes, personal property, and items of great worth were taken from the Jews and given to others.

Swiss gold helped too.

Plus when the Germans invaded other countries, resources and items of great value were removed from those countries and taken to Germany.

Answer 6

By increasing the national debt but he would have run into economic failure if WW2 had not happened.

Answer 7

By propaganda and nationalism and building up an army to conquer adjoining countries.

Answer 8

By murdering people and stealing their stuff.